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No. of Recommendations: 6
Hi Anne,

It sounds like there's some confusion between the CAPS score and the CAPShot score designed exclusively for PRO subscribers. I can see how that may be confusing at first...

The CAPShot score was designed by us here at PRO to look for a specific type of company (see here for more on CAPShot: http://newsletters.fool.com/37/news/features/capshotguide.as...).

CAPShot uses some of the data produced by CAPS (see here: http://newsletters.fool.com/37/news/features/meet-caps.aspx), which aggregates the intelligence of over 120,000 investors making stock picks on caps.fool.com.

A stock with a CAPShot score of 10, 11, or 12 (like FMX, ANSS, ADBE) would be of interest to us here at PRO -- that means it has good CAPS community backing and meets the particular metrics we've designed. Of course, a high CAPShot score does not guarantee we'll recommend it for purchase at PRO. But a low CAPShot score also doesn't necessarily mean that a stock is terrible -- it just means it probably isn't in its higher growth phase anymore.

How does CAPS work in relationship to timing in the market and to fundamentals?

CAPS shouldn't be used as a technical trading or market timing tool, but our data does show that when a stock is upgraded (i.e., from 4- to 5-stars) it has a tendency to outperform and conversely it underperforms when downgraded. See this article for an example: http://www.fool.com/investing/general/2008/10/09/a-strong-si...

To me, an upgrade/downgrade is simply a signal that further research is merited -- not that it's a trade signal or anything like that.

Does this help?

Foolish best,

Todd Wenning
PRO analyst
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