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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (451)	1/6/2002 9:57:28 PM
From: Don Earl	Respond to of 16631

The amount of analysis that goes into picking candidates for the S&P 500 is very limited. spglobal.com One of the more common reasons for being removed from the list is filing for bankruptcy. Since it doesn't take a rocket scientist to read a balance sheet, the idea that Standard & Poors researches a company any deeper than reading Yahoo profiles strikes me as a common misconception. A computer generated price to earnings ratio is totally worthless if a company is playing games with GAAP. Being included in the index hardly means it's a good company. You're not the first person to respond with a "but it's a S&P 500 stock" when I've pointed out weak fundamentals on a company, and I doubt you'll be the last, but I will continue to consider it a sad argument for recommending a company without doing a lick of due diligence. What passes for analysis at Standard & Poors is sloppy to the point of being shameful. Russel and S&P have to be two of the biggest jokes in the history of the stock market. All they really do is delete their dogs once a year and add anything with a large market cap. It makes for a terrific looking 20 year chart, but it sure isn't the same stocks that have been going up all that time. Just cross the ENE's off the list and point to the wonderful track record.