Hi All, To get CAPS in perspective, I'd like to ask you to compare it to some other kinds of rankings...Zacks...seems to be related to timing as well as fundamentalsIBD...different parts seem to be related to timing, but the fundamental ranking may be a good indicator of the quality of the companyHow does CAPS work in relationship to timing in the market and to fundamentals? Is it more of a predictor of expected growth or an educated guess in regards to something of a Hidden Gem or a Rule Breaker?Does the rating change quickly, weekly, daily, monthly, yearly?Will a 10, 11 or 12 ranked stock stay at that level for some time? How long?Examples: AAPL is ranked A+ with IBD's Fundamental Rank; 4 Zacks; 10 CAPShttp://stockcharts.com/h-sc/ui?s=AAPL&p=D&yr=0&m...ADBE is ranked A IBD Fundmental Rank; 3 Zacks; 11 CAPShttp://stockcharts.com/h-sc/ui?s=adbe&p=D&yr=0&m...ANSS is ranked A+ IBD Fundmental Rank; 3 Zacks; 11 CAPShttp://stockcharts.com/h-sc/ui?s=anss&p=D&yr=0&m...FMX is 5 Zacks; 12 CAPS...http://stockcharts.com/h-sc/ui?s=fmx&p=D&yr=0&mn...Could you say, for instance, that AAPL has good fundamentals, but isnot being very actively traded now and is what for CAPS???ANSS has excellent fundamentals and is not being very actively traded now and is what for CAPS???What does it mean that FMX is 12 for CAPS?Anne, needing concrete examples...
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 WenningPRO analyst
Todd, Thank you for getting me more focused. I have not done my homework and will get more directly involved in this process so that I can evaluate how I can better use CAPS rankings and the CAPShot score... get it into my gut, so to speak... There are a lot of components of TMF Pro to learn for me...working on it...wish I had been using CAPS before as it would have shortened the learning curve...Anne
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