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Hey, I don't begrudge your viewpoint at all -- it's rather an interesting way of thinking about things, and I'm assuming this is your initial reaction based on a brand-new or very recent first look at CAPS.

That's absolutely true.

Reading your post, it seems clear that CAPS is intended to do more than aggregate information into a price - so it's certainly doing something more than the stock market does. As you note, you're using it to cull out particular Foolish stock analysts. It's a bit like the "Best Of," but using past performance instead of recs.

I'll take it for a little spin, though I don't really do much analysis of individual stocks (I'm more of an index fund kind of guy). However, since you're still in Beta, I will implore you to add one thing to the system:

A short explanation of "cherry-picking"

It's the coin-flippers of Graham-and-Doddsville. If you have thousands of people participating in CAPS, a fair proportion (presumably near half) will outperform the market, if only by chance alone. And a fair subset of those will outperform substantially - even if none of them have any stock-picking ability beyond the average. It will be helpful for users of this tool to have that concept at their reach.

Good luck getting it up and running!


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