Drop in analyst coverage

Analyst coverage continues to decline in the US. Wells Fargo closing its research department could inidcate a trend. Can investment banks do away with research departments completely? I don't think so. Having analysts on the sell-side helps in maintaining an efficient market. A lot of people think that sell-side research shops cannot produce unbiased research. I don't completely agree with this statement. There are a lot of good analysts providing good value to investors. Yes, bias issue needs to be addressed but there is more to it. I think the key question that needs to be answered is - can sell-side produce quality research in a cost effective way? I think it is possible - but the processes and tools sell-side analysts use have to change. They need smart technology. I think time has come to move beyond using spreadsheet models. We, at finEye, believe that analysts can produce great research, efficiently and effectively, using our flagship product, Insight. It is the first software solution focused specifically on helping investment professionals in evaluating the true performance of a company. We use advanced technology that ferrets out early warning signs and provides invaluable insights.