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Big Red Flag For Investors

Of the 30 analysts who cover Forest Laboratories , only four have a sell rating.

David Maris, of CLSA Asia-Pacific markets is one of those analysts.

Now, a ‘sell’ rating is certainly upsetting for top management, but is it cause to freeze out analysts from the company, all together?

Sounds ridiculous but that’s what Maris says happened to him after he published negative commentary on Forest Laboratories.

”I’ve been doing this for 10 years and I know when a company shuts you out,” says Maris. He's tried to contact the company in all sorts of way, "never an e-mail back and never a call back; they just left us high and dry."

And he adds Forest isn't the only company engaging in this kind of behavior. Elan, Biovail and some other firms all did something similar when he issued ‘Sell’ ratings on them.

”If they don’t like what you’re saying, they come after you,” Maris says. "But it's only sell rated companies."

Repugnant as these developments may be, they could have a silver lining; they could be illuminating potential trouble stocks.

According to the WSJ, “Forest's apparent freezing out of the bearish analysts could be a red flag for investors as it shines a light on an under-the-radar area of Wall Street stock coverage.”

* For what it’s worth Fast Money producers called Forest Labs and they didn’t return our call either.


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Trader disclosure: On Oct. 28, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (STD), (PBR), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (APA), (AAPL), (AXP), (C), (GOOG), (GS), (ISRG), (JPM), (ORCL), (PCP), (PEP), (PFE), (UPL), (VRTS), (XBI); Cortes owns (K); Cortes owns (TSN); Cortes is short crude oil; Cortes is short gold; Cortes is short (AAPL); Cortes is short (RSX); Cortes owns the S&P 500

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