battery supplier

 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.

  A long while ago I blogged about the importance of selecting a time-frame when entering yo…….  Well here is the evidence that really highlights the importance.  As the number of outperforms that haven’t gone beyond their time frame increases and the number of underperforms that haven’t decreases then the stocks star rating will increase.  For the typical stock about half of the outperforms are still within their time frame GD761 , TD347 , Inspiron 1501 .  For ABAT that number is 82%.  So even though there are a lot of red thumbs this makes the difference between being 1 or 2-stars and being 3-stars.

  Now as you most likely know, only the cream of the crop gets to be a 5-star stock.  When you look at the ticker page that red line representing underperform picks looks like a sliver next to the green line for outperforms Inspiron 1520 battery , Inspiron 1521 battery .  Yet there are some that have a large percentage of underperform picks.  The reason those stocks are 5-stars is because no more than 1 or 2 of those underperforms are still within their time frame. 

  So when you see a largely hated stock with a surprisingly high star rating or a well-liked stock with a surprisingly low rating keep time frame in mind.