What else can you do with CAPS?
CAPS is more than just a stock-picking algorithm. It can also assist in stock sentiment research. CAPS ratings are as much about the community's opinion about a stock as they are about a stock's current performance. CAPS calls allow users to reflect where they believe a stock will be in a few weeks, several months, or years later.
But, because we store CAPS data, we can also examine the longer-term sentiment among other investors, too. For example, if you have been considering a stock that's in CAPS and you see that it's been a five-star stock for months, you may be pretty inclined to want to own it.
However, if you can see that it was a five-star stock but has been trending downward, it might be important to look at that company very, very closely and figure out exactly what is causing the community to feel that way about it. In fact, you can go all the way back to Nov. 1, 2006, to check CAPS ratings.