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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (23568)	3/18/2006 9:06:11 PM
From: Stewart Whitman	Respond to of 78751

OT - Re: Morningstar stock analysis You can correct me if I'm wrong but it seems to me that their ranking system is primarily based on the discount to their 'fair value' estimate. They get fair value from a DCF model. Their ranking system does not seem to consider when this value will be achieved or how easily it will be achieved. This effectively means that their rating system will not favor those GARP-ish stocks that are running well right now. On the other hand, it seems to recommend a lot of "broken" growth stocks that could potentially turnaround. I agree with you that a lot of the information in the analysis is shallow. I haven't seen any insight in any of the reports that I've looked at which isn't already well known. Overall, it feels somewhat mechanical. I do like the section that says what bulls say & what bears say. I'm helping a friend manage an account that's in mutual funds, which is why I have access to the site.