Reviews from Odd Sources

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This article (link supplied below) might seem silly, except that it was linked to by a Yahoo News front page, mixed in with links to stories supplied by places like CNN, Reuters and AP. It gives “five star ratings” (sounds like the S&P STARS system) based on how many people click thumbs-up or thumbs-down for the stock. It quotes people by screen name as though they were experts.

When dealing with ratings from places like S&P and Argus and brokerage houses, everyone may not agree on the value of the ratings, but at least we can have an intelligent debate because the analysts are starting with some background and follow an agreed methodology (i.e. everybody knows what they’re looking at because they tell you.) They also put their names to the reports and sign-off on disclosure. You are free to examine these reports in the light of day and decide whether to use the reports and ratings. Are people really using the CAPS rankings? No wonder individuals have such a lousy track record as traders. I guess these are the people on the other side of my trades.

Link 1

For more on what CAPS is, see link below.

Link 2


Chuck Cain