Various hypotheses have been proposed to explain why the return differential between value stocks and glamour stocks persists so long.
Consequently, glamour stocks are overpriced while value stocks are under priced.
In sum, there is not a consensus or the best theory on explanations for the return differentials between value stocks and glamour stocks, yet.
It is hypothesized that prices of value stocks drop more than those of glamour stocks at the announcement of earnings restatements, if other things being equal.
They would also realize that downward price adjustments to glamour stocks at the initial actual earnings announcements was not enough and hence should make further downward price adjustments with earnings restatements.
Hypothesis: Ceteris Paribus, prices of value stocks drop more than those of glamour stocks at the announcement of earnings restatements.
First, negative earnings surprises of glamour stocks are more surprising to the market than those of value stocks are, while positive earnings surprises of value stocks are more surprising than those of glamour stocks are.
How good have the returns been in these glamour stocks since March 9, 2009?
There are companies you may never even have heard of, some of which are much smaller or in industries that are considered less "glamorous" by investors, whose returns matched or, in some cases, surpassed this list of the glamour stocks during the same time period.
While there's nothing wrong with investing in the hot glamour stocks, if you widen your search beyond the well known names you might find a hidden gem that pays off just as big.