One of the comments that get's thrown around a bit is when a company is "re-rated" by the marketplace. The theory goes that as a company prospects become clearer the investment analysts decides it's too cheap and starts to pile in boosting it's SP price to theoretically more appropriate levels.
My query is "How quickly should this happen ?" It seems to me that a number of stocks with seemingly excellent prospects are still under priced. (Of course if one is strong in the belief that the stock is badly underrated this just makes for excellent buying opportunities.)
What do other members think ? Is the general investment community just too slow or too cautious or does it realistically take a long time and absolute certainty for stocks to be re rated ? Any past or present examples to help make the case ?