Merrills Advises Analysts

Merrill Lynch is believed to have issued instructions to it's analysts to rely less on reported corporate earnings when considering what rating is appropriate.

In a move that is seen clearly as an effort to repair the damage Wall Street has suffered as a result of the Enron and related scandals, analysts have been told to place greater reliance on competitor analysis, cash flow, return on capital and receivable and inventory turnover.

Analysts are generally thought to have become too fixated on net income calculations. This will now change.