More Nonsensical Reporting on Market Statistics

It just never stops. Here we have a Globe and Mail market commentator cherry-picking numbers to suggest that a company, BMO in this case, is falling out of favour with investors in advance of its earnings report.

Yes, the stock is 10% of its nearly $55 12-month high, but so what? Why not focus instead on the fact that the $54.75 high-water mark is 128% above its $24.05 12-month low. With that choice of data points, it is very reasonable to expect that some investors will take their profit in front of earnings rather than risk a surprise in the quarterly report. That perspective, however persuasive it may be, makes for a far less interesting headline. Look at the chart and decide for yourself which story better fits the picture.

Too often the media is more interested in grabbing your attention than in providing reasoned analysis. Reader beware!