Pachter is a poor analyst for one key reason, the same reason that most analysts are poor: he shows absolutely no awareness of the effects or possibility of a blue ocean strategy. Even before that term existed, there was a generic equivalent term called "innovation", yet poor analysts also ignore that. I can understand why, as it's much easier to assume that everything will remain constant than to factor in the possibility of actual change (let alone predict the form the change will take), but it's downright embarrassing when somebody clings to an outdated model of an industry after an innovative change shifts the industry values.
I've heard that Michael Pachter reads this site from time to time. If that's so, here's a valuable message I hope he sees: read Blue Ocean Strategy. It's not a long book, it should not be a difficult read for somebody whose job involves business strategy, and it's a very informative look at the rules behind how industries can and do get reshaped all the time by innovation. As a tool for an analyst, it's invaluable, as it sets down the rules of play for the one aspect that few analysts ever account for: markets reshaping themselves.
Sky Render - Sanity is for the weak.
