Introducing Sentieo Relevance Search

Sentieo’s overarching mission is to augment human decision-making through the application of the latest technologies. We are proud to demonstrate this with our most recent improvement to the platform:

Sentieo Continues to Lead In Search Tech with Relevance Search

Clients already love our smart Document Search, which offers:

  • tens of millions of documents, searchable across many dimensions
  • 1000+ synonyms/acronyms
  • extended Boolean operators and proximity
  • in-section/in-table/in-footnote searches
  • saved search alerts
  • extensive document tagging including sell-side report classifications
  • search statistics for quantifying trends
  • seamless integration into notes, and much more.

The newly released Relevance scoring algorithm, custom-built by our global team of data scientists, will surface documents most likely to be relevant to your search based on multiple factors derived from the statistical properties of the documents and the queries. For example, some of the factors considered are density within the document (inclusive of synonym matches), clustering, and recency. Relevance scoring is based on true machine learning and will only improve as Sentieo DocSearch “learns” over time. It gives you, the user, more time to focus on analysis where you add value, rather than on tedious searches.

But we didn’t stop there. Another new sorting option is Sorting by Hits — because we know that sometimes you need the most recent documents at the top, sometimes you need the document with the most hits (mentions), and sometimes you need the one that is the most relevant. You can now toggle between these sorting options in one click, which allows you to compare the results before you dive in. You can also sort by document size and by ticker for your multi/all ticker searches. You are in control of the format that fits your needs.

Users will find relevance searches suitable for broad initial overviews of topics: your search might pick up sector primer reports from the sell side, or a very topical deck from a corporate. Users more familiar with a topic might still prefer the reverse-chronological order of documents for the latest on the topic. And, for people getting specifically into details, we have the specialized searches, such as in-transcript, said-by-the-CEO, or in-table searches that let you find the numbers around your topic within seconds.

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And there is still a lot more to come. The 2019 Document Search product pipeline is better than ever, and you will see additional applications of AI/ML coming soon!

 

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Introducing Sentieo’s Game-Changing Transcript Sentiment and Linguistic Analysis Features

Over the last year, the Sentieo team has been investing heavily in NLP & data science. We were very excited to release the Sentieo’s Transcript Intelligence Report, which is the first of many features built on a powerful new technology that lets us dissect documents and help you find insight.

There is signifcant amount of academic research that supports the idea that changes in sentiment among those in company management, as well as those working as analysts, do indeed have some relationship with stock returns.

Management is typically a negative predictor of stock returns. When management seems overly excited about the future, this may indicate that the stock will underperform. (See “Manager Sentiment and Stock Returns,” Journal of Financial Economics). On the other hand, when investor sentiment is low, subsequent returns are relatively high on a subset of stocks (high volatility stocks, unprofitable stocks, non-dividend-paying stocks, extreme-growth stocks, and distressed stocks), consistent with an initial underpricing of these stocks. (See “Investor Sentiment in the Stock Market,” Journal of Economic Perspectives).

Our Transcript Intelligence Report provides automatic analysis on how sentiment and keywords for a given company have changed across quarters. The analysis easily splits out Management Sentiment vs. Analyst Sentiment. Let’s use Netflix as our example.

First, we open up Sentieo Document Search and search for Netflix transcripts. We choose a transcript in the left hand navigation, and see a “View Linguistic Intelligence Report” button at the top of the document in the right hand pane.

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We’re taken to the full Transcript Analysis page, and can now dive into the analysis!

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Sentiment Scores

Sentiment scores are generated by tagging each word in the document as positive, negative, or neutral using a dictionary designed for financial documents and applying a formula to generate a score for each section. The formula for sentiment is below:

The number (typically a decimal value below 0.1) is a percentage that should be considered on a relative basis, rather than absolute.

Management Sentiment

The following chart shows sentiment for Management commentary and Q&A answers on eight quarters of earnings calls. Sentiment is calculated as positive word % of total words – negative word % of total words.

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Analyst Sentiment

The following chart shows sentiment for Analysts from the Q&A section of eight quarters of earnings calls. Sentiment is calculated as positive word % of total words – negative word % of total words.

 

 

 

Management-Analyst Sentiment Spread

The following chart shows the historical spread between Management and Analyst sentiment.

The spread between the two would suggest divergences in sentiment. For example, if the spread turned negative, then it is possible that management has turned less bullish while analysts have remained bullish, thereby signaling the potential for management to disappoint in future periods.

 

 

 

Conference Calls Sequential Comparison Word Cloud

The comparison word cloud shows the biggest changes in average keyword frequency between the 2018-04-16 conference call and the 2018-01-22 conference call for NFLX.*

 

 

 

 

Analyst vs Management: Keyword Differences

This is another comparison cloud showing the major average differences between management and analyst keywords on the 2018-04-16 conference call.

 

Management Top 15 Keywords

This table shows the top 15 keywords by frequency referenced in the past eight quarters of earnings calls. This provides a visual view at a glance into what is being discussed on the earnings calls over time.

 

 

 

Analysts Top 15 Keywords

 

 

 

Sign up for a free trial of Sentieo to get the sentiment report for Netflix and any other ticker you follow.