MSN Money's StockScouter . How reliable it is?

[cowcool]

MSN Money's StockScouter . How reliable it is?

Here is an exceprt from their website.

• StockScouter compares the fundamental and technical qualities of stocks to measures that have proven statistically predictive of stock performance in the past.
  
• StockScouter then assigns an expected six-month return to each stock based on this statistical profile and balances that return against expected volatility.
  
• The ratio of expected return to expected volatility, or "risk," yields the stock's final overall rating.'

Thx!

[rharmelink]

Originally Posted by cowcool

MSN Money's StockScouter . How reliable it is?

Here's a Marketocracy fund I have:

Performance for RH MSN Top 12 Picks as of August 21, 2008

But it is based on the top PICKS, not the StockScouter rating. I also use StockScouter ratings as a factor for picking Zacks#1 picks. That Marketocracy Fund is here:

Performance for RH Zacks #1 Picks as of August 21, 2008

For the 159 stock picks I've added to my database (not all are in the Marketocracy fund), the average 3-month performance is 4.8% versus -0.1% for the S&P 500 over the same 3-month periods. As an individual factor, the 9/10 StockScouter ranks had 6.3% 3-month performance and the 7/8 StockScouter ranks had 9.0% 3-month performance.