Morgan Stanley U.S. Equity Research launched its inaugural North America Best Ideas List on October 1. The list represents the group's nine leading investment ideas. Additions and removals of stocks are published as part of regular, stock-specific reports. The complete list appears weekly in Investment Perspectives.

• Download the October 1 edition of the Best Ideas List.

"The Best Ideas List a part of Morgan Stanley Research Management's ongoing effort to highlight the best research and deliver the Firm," said Steve Penwell, Director of U.S. Research, "The selection process for this list is a stringent one."

To be included on the list, the investment thesis must have:

1. A differentiated out of consensus money-making idea with fresh data and analysis. The analyst is asked to use US Equity Research's proprietary "What's in the price" analytic to present a compelling challenge to current market assumptions.
2. A favorable risk-reward profile must be demonstrated utilizing US Equity Research's proprietary scenario analysis that all of the group's research contains. The range of plausible outcomes and the scenario skew are assessed as indicators of analyst conviction.
3. Clear catalysts. A clear roadmap for upcoming data and events in the following few months is required.

 The Overweight names on the inaugural list are:

• Baker Hughes
• Bank of America
• Celgene
• Danaher
• Hewlett-Packard
• Suncor
• Textron
• Union Pacific
• Walt Disney

"We intend to keep Best Ideas a fluid and fresh list of our best current ideas, with additions and removals to be published as regular stock-specific reports," said Penwell. "We welcome feedback and hope that value is found in this new product."

Important Note: Best Ideas is not and should not be considered a portfolio. Each investment idea is chosen based on its own merit and without any consideration of the other investment ideas chosen. Specifically, there has been no effort to mitigate the risks of investing in any collective group of Best Ideas. Concepts important to a balanced portfolio, such as negative correlation and diversification, have not been considered. Treating Best Ideas as a portfolio will subject you to the risk of losing all or a substantial portion of your investments.