Hi,
I've been analysing the Seeking Alpha Picks service, I'm kinda impressed that it seems to work and it seems people are actually making money with it.
But what I struggle to understand is how and why it works, I've analysed some of their picks of last 7-8 months, and they all seem to have something in common:
– It picks stocks with recent momentum , follow the trend I get.
– It seems that when SA picks signals the BUY, the stocks pumps up, I am not sure how many people follow this and if is a significant amount to cause this or not.
So I notice that a lot of their picks are at all-time-highs and then the stock just goes up even more, I can't see what methodology would signal buys at all time highs in consistent way, some of those stocks are not even fundamentally attractive or at good valuation when it says BUY… which makes me believe the stock is pumped because SA Picks signal the BUY, what do you think? Does this make any sense?
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