This is the story of Larry, Curly and Moe, three analysts whose writings on Polymedica illustrate why investors are right to mistrust Wall Street research.

Polymedica sells medical supplies directly to consumers, many covered by Medicare. Few big brokerage firms follow it.

The big sticks on Polymedica belong to John Calcagnini of CIBC World Markets, Joel Ray of First Union Securities and Ryan Rauch of Adams, Harkness & Hill. CIBC and First Union underwrote three million Polymedica shares on Oct. 7, 1999, generating $3.4 million in fees. The next day, Mr. Ray began coverage with a "strong buy."

When 2000 dawned, Polymedica shares began an impressive ascent. On March 21, Mr. Rauch, who had been an analyst at CIBC at the time of the offering, began covering the company with a "strong buy." The stock was $45; 10 days later it was $58.75.

But Polymedica is a volatile stock and by late May its shares had fallen to $27, perhaps because in April the company said it would sell $100 million in new shares.

To the stock's rescue rode Mr. Calcagnini, who began coverage on it with, what else, a "strong buy." During June, the shares rallied to $52. As they rose, Steven J. Lee, Polymedica's chairman, sold shares worth about $1.3 million. During the summer and fall, as the analysts sang Polymedica's praises, Mr. Lee sold stock worth $1.4 million. CIBC and Adams, Harkness handled the trades.

On Oct. 23, Safeco Asset Management, Polymedica's largest shareholder, filed its intent to sell 300,000 shares through Adams, Harkness. The next day, Mr. Calcagnini and Mr. Ray restated their "strong buy" recommendations.

The bottom fell out of the stock on Nov. 20 when Barron's quoted a Federal Bureau of Investigation official saying the agency was looking into possible health care fraud at Polymedica. In the article, Mr. Lee denied knowledge of an investigation; the stock lost half its value that day.

Back in the Amen corner, the analysts worked to reassure investors. Mr. Calcagnini reiterated his upbeat view on Nov. 21, putting a $70 target on the stock, then trading at $30.25. He cheered again on Jan. 11 and Jan. 16; the stock rose to $44 two days later on news of record earnings.

Mr. Ray took over in March, recommending the stock just after it fell by half on news of customer complaints being sent to the F.B.I. An overreaction, Mr. Ray said, adding that Polymedica did not appear to be under investigation. Management had told him so.

In late June, Mr. Ray advised clients that the company expected a letter from federal authorities resolving the rumors shortly, according to Mr. Lee. The stock was at $40.

Last weekend, Barron's reported a federal grand jury investigation of Polymedica. In an interview Friday, Mr. Lee said the company would be exonerated.

After the news, Mr. Ray said of his coverage: "I was basing my analysis on my discussions with the company. I felt that was the most accurate information."

Polymedica's stock stands at $15.02. All three scribes have dropped their ratings, telling investors to "wait for further clarity." Mr. Rauch threw in the towel last, saying, "Other companies guilty of Medicare violations have survived and prospered."

Neither Mr. Calcagnini nor Mr. Rauch returned phone calls. John Adams, chairman of Adams, Harkness & Hill, said he believed in Mr. Rauch's analysis. Asked if his firm's support of the stock was related to commissions generated by Polymedica insiders' trades, Mr. Adams said getting such orders is customary. "It's a way of saying thank you for the research coverage," he said.