If 90% of the analysts thought a share was correctly priced and others thought it was overvalued. Then it essentially means that the 90% think that all risks have been mitigated with respect to that stock. Isn’t it?
Then,
If stock price were the function of “perceived” risks mitigated , i.e. S(R) = 1 when correctly valued. Then if R–> 0 as 90% think, the stock should tend to be invaluable, i.e. infinity.
So forget working on fundamentals and start buying 90% of the analysts dinners.
If you have lost wind of what I am conveying here, then you my friend should get it in you head that ” Perception often precedes reality.”
The perception of being invincible, i.e your stock sky rocketing, often creates a false reality of invincibility for companies and the moats around them are capable of being broken only by the brave and naive startups who don’t believe in ‘the impossibility concept ‘, circa IBM vs Apple. Circa SolarTown going after some of the big guys ( SunEdison, Azure, etc. ) . Only time will tell and perhaps our execution too.