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Imagine a 5 star stock has a poor earnings report, and sentiment changes due to an overreaction and the stock gets pushed down into 4 star territory.

As much as I would like to think the intelligent (I hope) CAPS community would keep a 5 star stock at 5 stars after a bad earnings report, there does seem to be alot more momentum investors playing CAPS than contrarian-minded people. A good business is supposed to be less risky the lower its stock drops.

This is just one example but I was disappointed to see Netflix a one star stock on 10/23 and then jump to 3 stars AFTER the excellent earnings report, which shot the stock up 20% the next day.

hmmmm...one star at $22; three stars at $27. That's just not right.

John
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