All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital. The Stockscoter rating was a center of attractions for traders who used the rating as part of their stock analysis process.
However looking at the explanations from msn (here for example) it seems they decided to use less data sources and thus replaced Stockscouter with MorningStar. The highest rated stocks (5-stars) will be the stocks that are the most undervalued in MS opinion.
They do explain that each day they review all the data for stocks and score them according to growth, financial solvency, performance and volatility. One of the most weird aspects of the redesign was the removal of the stockscouter rating system. Further more, the score used to provide regular news article like stock scouter’s top 50 and more.
For a stock to have the highest grade, it should have both: high growth and be considered cheaper than its value.
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