I've noticed a lot of people closing out their pick on Gushan Environmental (GU) to lock in the huge jump in share price the other day. You should probably know that that change was caused when they changed the ratio of ADS's from 1:2 to 1:10 for every share. I guess that works out the same as a 1:5 reverse split. So once our start prices on GU have been adjusted to account for that you may discover that you just locked in a small loss instead of a huge gain. [more]
The stock that has grown to nearly mid-cap status on hype, hope, questionable stock trading and huge losses with no revenue in sight is making plans for a $200M IPO. And they've found some big name friends willing to underwrite the scheme...
Goldman swims downstream for PetroAlgae IPO
Recommendations: 1 This article from November 2007 provided some interesting information that expanded on the simple "1-star=bad 5-star=good" mantra.
Now that CAPS has two more years of data is there a newer analysis of the performance of 1 to 5 star stocks? Are newly minted 4-star stocks still the best? [more]
My favorite stock, Advanced Battery Technologies (ABAT) recently moved up to 3-stars which surprised me because it has so many red thumbs...30% of the all-star picks are red thumbs...so I started doing some research. It turns out it is pretty uncommon for such a hated stock to make it to 3-stars. Only 2% of the 1024 3-star stocks are more hated than ABAT (though none are as well known - most have fewer than 50 total picks). In fact, most 3-star stocks have less than 20% of the all-stars giving red thumbs. So what accounts for the disparity? I'm glad you asked (because I spent quite a bit of time working on this). The reason has to do with the amount of active picks that have exceeded their time frame. [more]
There are 60 all-stars who have a red thumb on Advanced Battery Technology (ABAT). Most of these picks were made more than two years ago. Yet only three have a positive score - and two of those were picks made after ABAT tripled in just six weeks back in September/October 2007. The rest have an average score of -65. By comparison, out of 168 all-star outperforms 100 picks are less than one year old. [more]