Whether investors decide to do further research on these names – or avoid them like the plague – may depend upon their view of the value of the analysis provided.
But anyone prepared to pick their own stocks rather than pay a fund manager or index-tracker fund to do it for them must still thoroughly research any company for themselves before they even think about buying its shares.
If this sounds difficult, well, it is but at least investors can follow the lead of successful American investor Charlie Munger – Warren Buffett's vice chairman at Berkshire Hathaway – who boils it down to four things:
• Do you understand the business?
• Does the business have intrinsic value or durable competitive value?
• Does management have integrity?
• Does the stock come at a reasonable valuation?
Equally, if an investor likes what they see, they should not be put off just because they are out of step with consensus – they may have unearthed a nugget of value, assuming the stock passes the first three of Munger's tests.
Then they may be heeding Buffett's maxim that 'you can't buy what is popular and do well'.