SOURCE: PredictWallStreet

August 22, 2006 12:11 ET

PredictWallStreet Brings the Wisdom of Crowds to Wall Street

Online Stock Prediction Community Harnesses the Collective Intelligence of More Than One Million "Outsider Traders"

SANTA CRUZ, CA -- (MARKET WIRE) -- August 22, 2006 -- PredictWallStreet, Inc., the stock prediction community, announced that more than one million "outsider traders" in more than 200 countries are now using PredictWallStreet.com to predict and track the movement of stock prices and market indices. PredictWallStreet is the only stock-related site that provides reputation-based boards where postings are rated according to the accuracy of the individual's predictions.

PredictWallStreet is also the only online community that provides insight into what ordinary investors -- "outsider traders" -- are thinking. PredictWallStreet delivers:

--  An edge in the market by filtering bulletin board opinions based on
    the accuracy of the poster's predictions
--  The power of Web 2.0's collective intelligence and user-generated
    content
--  A fun, insightful and compelling way to see how your stock picks
    compare with the unvarnished sentiments of millions of other investors.
    
PredictWallStreet is the first stock prediction community to aggregate the forecasts of ordinary investors, producing what professional traders call unbiased market sentiment. PredictWallStreet's patent-pending learning algorithms get even better as more people use them, delivering on the promise of what Tim O'Reilly calls the real heart of Web 2.0 -- harnessing collective intelligence. Cognitive scientist Craig Kaplan, Ph.D., founded PredictWallStreet.com to give ordinary investors an edge in the market.

"As shown by The Wall Street Journal Dartboard Contest, professional stock analysts' portfolio recommendations often do not outperform random picks or the Dow Jones Industrial Average," said Dr. Kaplan. "PredictWallStreet pools the predictions of thousands of users worldwide to produce a useful indicator of community sentiment. Our research suggests that PredictWallStreet can be used to generate collective forecasts that beat the market by further processing the community's sentiments using our proprietary technology."

PredictWallStreet's Four-parameter Collective Intelligence Engine™ (4CIE™ pronounced "foresee") reflects the insights of James Surowiecki, author of "The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations." Surowiecki's central premise is that large groups of people can be smarter than an elite few provided that certain conditions are met, including:

--  Diversity of opinion: Each person should have private information even
    if it's just an eccentric interpretation of the known facts.
--  Independence: People's opinions aren't determined by the opinions of
    those around them.
--  Decentralization: People are able to specialize and draw on local
    knowledge.
--  Aggregation: Some mechanism exists for turning private judgments into
    a collective decision.
    
The distributed nature of the Internet enables the first three attributes of smart crowds, while PredictWallStreet's patent-pending technology provides the key aggregation mechanism by transforming private sentiments about stock prices into collective forecasts.

"The collective wisdom of PredictWallStreet's online stock prediction community reflects the irrefutable truth that no single stock market analyst, no matter how brilliant, is as smart as all of us," said Dr. Kaplan.

About Dr. Craig Kaplan

Craig Kaplan, Ph.D., founder and CEO of PredictWallStreet, was influenced in his collective intelligence research by Herbert A. Simon, his co-author and mentor at Carnegie Mellon University. Simon won the Nobel Prize in Economics in 1978 for his work showing that people's economic decisions are limited by their ability to process information. Dr. Kaplan founded PredictWallStreet to overcome these limitations by pooling the collective intelligence of millions of "outsider traders" and to give ordinary investors an edge in the market.

About PredictWallStreet

PredictWallStreet leverages the power of the Internet and the wisdom of crowds to generate valuable, unbiased investor sentiment about stocks and markets. PredictWallStreet continuously gathers and combines online stock predictions from a rapidly growing online community to reflect all the thinking of investors -- rational, irrational and intuitive. To predict the future price of your favorite stocks and to see what others think, visit www.predictwallstreet.com.

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