sentiment

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.

management

 

 

 

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.

crypto interest rates Sentieo

From Crypto to Interest Rates: A Sentiment Analysis of Q1 2018 Earnings Calls

Today we’ve published our second Sentiment Analysis Report, which summarizes last quarter’s top keyword searches and provides detailed sentiment analysis across all industries. We used Sentieo’s brand new Transcript Sentiment Analysis feature to analyze earnings call transcripts and discover which topics companies discussed the most last quarter, versus the same quarter in 2017. (See our previous report here).

We also compared the sentiment of management and analyst sections of transcripts, and graphed these data points so you can easily see trends or discrepancies between the two. We publish these reports every quarter, so you can stay updated on information that could impact your investment decisions this year. Here are some interesting themes that came up in our research:

 

Sentiment Analysis

Management versus investor sentiment is diverging.

Our sentiment analysis on transcripts shows that a decoupling is taking hold between the language from company management and market participants. Management continues to be upbeat during earning calls and presentations, while sell-side analysts and investors are taking a more cautious stance. To learn more, download the full, free report.

 

Keyword Mentions

Two substantial highlights from the various themes we cover in this report are related to cryptocurrency and Trump.

While mentions of crypto have continued to ramp up, two companies in particular had a surge in references: IBM and Overstock.com.

IBM, with its Watson program and early involvement in the emerging fintech scene, is a recurring leader in the category. What’s new is that as concepts are maturing, bigger and more influential ecosystem players are now making moves: IBM recently revealed that it has been meeting with executives from commodities trading platforms, large corporations, and perhaps most importantly, central banks, to explore cryptocurrencies and blockchain in their operating models. (CoinDesk)

Overstock.com also made the headlines as possibly the first $1bn+ listed company dipping into crypto funding with an ICO (Initial Coin Offering). The stock fell sharply year to date (-40%), in part in reaction to the Securities and Exchange Commission starting an investigation on Overstock.com’s subsidiary that did the ICO. (Investopedia)

With this report, we are starting down the path of quantifying linguistic data. This report is a real use case of the exciting new features we recently released, like our Transcript Sentiment Report function, which is part of Sentieo Document Search.

Below is a sneak peek of the report: a sample page about the information technology sector.

To learn more about the companies, industries, and regions where crypto and other themes are being most discussed, download the full report, which covers this sector and many more. To find out more about how to run your own sentiment analysis with Sentieo, sign up here for a free trial.

 

Analysts: Go From Hours of Tedious Table Data Entry — to None

Sentieo Table X

How TableX Helps You Find, Organize, Audit, & Extract Non-Standard Data

Tired of digging through documents and manually inputting numbers to build your models? As former analysts ourselves, we built Sentieo’s TableX from the ground up to save you hours of unnecessary work — with functionality you can’t get anywhere else. We built TableX years ago, and have been making continuous improvements to the natural language processing technology in order to add functionality and make it more accurate. Stay tuned for some major upgrades over the next two months as we level up the technology.

What Is TableX?

Table X helps analysts find, organize, audit, and extract data easily.

Let’s say we want to look at Apple’s iPhone units sold. We open up Sentieo Document Search, enter the Apple ticker, and query “IN:TABLE iphone NEAR10 units.” (See screenshot below). We choose the 2017 FY10K and see the mention of iPhone sales highlighted in yellow.

Sentieo Table Extraction

From here, we can do a few things. First, we can Export Table to Excel (see 1 below).

Sentieo export to excel

When you click this button, Sentieo will download a cleanly formatted Excel file for you, saving you countless hours of copy-pasting and formatting:

Sentieo Export

Let’s say that you would also like to reference this table at a later date. Simply press the Highlight Table button (see 2 below) to send a copy of the table to your Sentieo Notebook:

highlight save table

The table will automatically get tagged with the appropriate ticker, and labeled for easy search and recall. You can see the saved table below in our Notebook:

notebook

One of the most useful TableX tools is Similar Tables, a feature that is unique to Sentieo. If you click the Similar Tables button, you can easily compare similar tables from different points in time.

similar tablesThis function allows you to compare your current table to its historical equivalents. On the left is the table we just found (Q4 2017), and on the right is a similar table from the prior quarter. If you click “Next” on the far right, you can see the table from Q2 2017 and earlier. Similar Tables saves analysts hours of time they might usually spend searching for, exporting, and comparing historical tables side by side.

Time Series takes table comparison one step further (see 4 below).

time series

With Time Series, you first choose the data you’d like to compare over time. (See checked row below: “iPhone”)

time series iPhone

After selecting the line item(s) you want to examine, Sentieo will crawl through and extract values for this line item in any document type that you checkmark on the left hand side (see below).

iphone time series closeup

You also have the option to Export to Excel and dump the numbers into your model, Open in Plotter to visualize any trends in the data, or Save Series in order to reference these values at a later time.

This all works well for SEC filings. But what if you want to extract a table out of a PDF research report or investor presentation. Our technology can handle that too. All tables in PDFs have an “Export Table” button to put that data directly into Excel, like this table on Netflix Streaming drivers from a JPM research report:

Check out the video below for a full walk-through of all TableX features, with the use case being that you’re on the phone with Apple’s management team and they’re talking about the iPhone’s pricing power. You need to check if what they’re saying ties to the financial data — in under 120 seconds:

Stay tuned for TableX updates to come! We’re a month or so away from a TableX release that will make data extraction and analysis even easier. To try it out for yourself, get a free trial of Sentieo today.

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sentieo 2017

Our Year in Review: What We Built for You In 2017

2017 was yet another big year for product development at Sentieo. We continued to add powerful features to help our customers take their research process to the next level. Take a look below to see just a few of the innovations from 2017!

Robust, Global Financial Data Coverage

We now have full global coverage of company fundamentals in all international geographies. We added data from 50k+ global tickers on all major exchanges, from Reuters Fundamentals.

Redesigned Equity Data Terminal

Our new financial model has a more detailed, robust methodology that seamlessly integrates historical reported data with forward analyst estimates in a sleek, updated user interface.

Valuation & Price Target Tool

The new Valuation & Price Target tool takes target price setting to a new level of simplicity.

Enter the price you think is fair for any of the forward years, and Sentieo updates the valuation multiples. You can also enter what they think is a fair multiple for any of the forward years or for any of the forward multiple metrics, and it will update all the other valuation multiples and the price target accordingly. Both work seamlessly on the same page; you can jump from one method to the other.

 

Searches Made Easier

Keyword Library

Users can search our ever-growing library of over 500 unique, pre-built search queries across various industry sectors & themes to find the most relevant data.

keywordcropped

PowerQuery: Complex Query Operators

Within our DocSearch tool, our search operators provide you with finer control over your searches so you don’t have to sift through unwanted results.

Sentieo query operators

Section-Specific Searches Within 10K’s & 10Q’s

When working with quarterly and annual reports, filter your search at the section (item) level; you can focus your search on financial statements, Management Discussion & Analysis, risk factors, & more.

 

ESG Reports (Sustainability Disclosures) & Federal Reserve Documents

We’ve added Sustainability Disclosures to our searchable documents, in addition to FOMC meetings minutes, statements, press conference projection materials, and speeches, which can be found under the ticker FED-RES.

Sentieo sustainability

 

federal reserve

 

In-Depth Ownership Data In Shareholder Data Explorer

Easily look up a ticker in our Shareholders tool to access a list of every publicly disclosed shareholder for that company. Look up an institutional holder to find a history of all its disclosed shareholdings (updated quarterly). You can also find the history of a U.S. company’s executive dealings (updated daily).

 

We’re really proud of what we accomplished this year, and we’re working to make 2018 an even more successful year, delivering the features you need to make your life easier. Got feedback or ideas? Get in touch with us.

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Announcing Our Partnership With 7Park For Alternative Data!

We’re pleased to announce that we are one of 7Park Data’s launch partners for their new API product. Starting today, 7Park customers who also use Sentieo can access their data in Plotter and Mosaic. 7Park’s data offerings available via API include web and mobile app traffic data, retail purchase data, and more.

The combination of 7Park data in Sentieo’s alternative data suite makes discovering alpha opportunities possible without hiring a quant. 7Park Data can be easily added to a chart or statistical analysis including other sources of alternative data, financial metrics like revenue or stock price, and your own data. Examples displaying how this data can be used are presented below.

In the words of one of our customers:

“Sentieo gave me a way to make sense of the data without having to spend budget on a full-time quant. Several points of my returns have been inspired.”

Contact your Sentieo Customer Success rep or e-mail us at hello@sentieo.com to get a demo of how this product can generate investment ideas for you. If you are not a current Sentieo customer, you can request a trial here.

 

 

Introducing The Sentieo Research Management System (“RMS”)

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Sentieo is pleased to officially announce the introduction of its cloud-based integrated Research Management System (“RMS). The new RMS provides deep analytics to help investment professionals identify and analyze behavior and processes that drive their performance and decisions. How many times did an analyst increase her price target after reading an earnings transcript she annotated as “positive” and did such changes drive positive or negative performance? Sentieo’s RMS allows users to input different variables used in the decision-making process and to track each update.

With a robust set of collaboration tools, Sentieo’s RMS allows teams to work together in the same set of shared documents by jointly highlighting, commenting, and annotating. Teams can further synch across devices, forward emails, clip articles, and automatically integrate notes from Evernote and OneNote in real-time. Furthermore, the platform allows teams to analyze their entire decision-making process tracking relationships between various actions like increasing a price target after conversations with management.

Sentieo RMS is the first of its kind to be integrated into a robust financial research platform, rather than a point solution. The Sentieo platform includes industry-leading financial document search, a powerful financial data terminal, a data visualization suite for alternative data, and more. The RMS is seamlessly integrated into the product, avoiding the need for an analyst to leave the platform to take notes, share, and collaborate on research.

Optimized for compliance and security, Sentieo’s RMS helps asset managers automate and enforce compliance requirements without putting undue burdens on the analysts’ productivity. Sentieo automatically logs all activities and notes, making compliance a breeze.  All data is encrypted at rest and in transit, and all notes are versioned, easily searchable and available via an API to be stored in any data vault.

Much like their corporate counterparts, consumer-grade apps like Evernote and Microsoft’s OneNote have found their way into the information-intensive investment research process. These applications do provide a basic, albeit limited experience with which to capture, organize, and share information*. On the other hand, legacy RMS vendors provide tools to manage and analyze the research process but their clunky interfaces have missed out on the trend in consumerization of IT. Sentieo RMS combines the best of both worlds: a seamless, easy-to-use, interface with enterprise-grade security and detailed analytics and reporting for compliance.


Sentieo Notebook is an information hub to Enhance Data Organization & Accessibility

Sentieo helps make investment professionals more efficient. The notebook provides a workspace for organizing and searching all research including notes, highlights, charts and more. Easily gather content that matters and keep it all in the cloud mobile accessible for quick reference.

Sync Across Devices
Whether you’re on a desktop or mobile device (iPhone, iPad, Android), you can take notes and access your research regardless of whether you’re at the office or on the road travelling. Our offline sync capabilities even let you take notes without Internet access.  
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Evernote and OneNote Integration
Two-way sync with Evernote and OneNote gives you access to all of your Sentieo Notebook content right inside of your favorite note taking apps. Don’t want to disrupt the way you take notes? Create content in Evernote and OneNote and have it sync back to your Sentieo Notebook.
Forward E-mails
Send important emails and attachments directly to your Sentieo Notebook so that you can keep track of all of your notes in a single place. Keep track of interesting articles on the Internet with our web clipper. Save the contents of any webpage for future access in the Sentieo notebook.
Web Clipper
Keep track of interesting articles on the Internet with our web clipper. Save the contents of any webpage for future access in the Sentieo notebook.

Switching back and forth between content sources – SEC filings, broker research, transcripts, company presentations—is a significant waste of time and effort by an investment team member whose skill set is best used to analyze and interpret information, not manage it. Professionals can access all company source documents, investment theses and notes, and financial highlights from a single screen. Read the latest company documents and research reports while seamlessly adding highlights and annotations. All notes are automatically tagged with the appropriate ticker, allowing instantaneous recall of key highlights relevant to an investment thesis.

Collaborate with your team

In an investment team environment, it’s important to recognize the power of the collective intellectual capability of the team. The market greatly rewards investment teams with a diversity of thought and the courage of their convictions. Ideas, theories, and opinions can flow freely and efficiently across the entire decision-making spectrum, helping uncover ideas while avoiding landmines. Sharing knowledge efficiently both increases the alpha potential and also acts as an intellectual risk management tool.

This is why we have designed-in sharing and teamwork all across the platform. Teams can work together on the same set of shared documents (notes, filings, transcripts, research reports, etc.) and collaborate by jointly highlighting, annotating, and commenting directly on any document. Sentieo is where your investment ideas begin to take shape, allowing team members to seamlessly share and exchange ideas with one another.

RMS: Enhancing your team’s efficiency and decision making

Investment professionals not only need to identify actionable ideas, but they also need to share such ideas with a broader team and convince the broader team of the probability of success. Within the RMS, an investment team (or portfolio manager) can review every document an analyst reviewed and failed to review, every note taken within those documents, every investment thesis written about a company, every meeting attended with that company and all of their peers’ prior comments.

Sentieo helps investment teams stay organized when it comes to their portfolio and ideas on a company:

  • Dashboards: The portfolio and ticker dashboards broadcast all recent activity related to companies in the coverage universe. Stay on top of activities such as recent notes, documents, document highlights, company events, comments, and tasks—all on one screen. It also includes a high-level overview of all notes and documents related to the particular ticker, with an activity feed that shows the work that has gone into this ticker all on one screen.
  • Portfolio Summary Table: The Portfolio Summary table enables an understanding of the current state of ideas and investments in a team’s investment universe.
  • Thesis sheets: Our customizable thesis sheets allow the user to easily summarize the key points of a thesis on a stock so that their team has a collective view on all investment ideas. This is where you house your team’s thesis on the stock. With multiple people on the team all covering different stocks, this becomes the go-to place to understand the thought process behind the investment. All fields on the thesis sheets are customizable and trackable
  • Task Manager: Managing deadlines and remembering items on a to-do list can be difficult. With the new Sentieo Task Manager, a user can add tasks to notes and assign them to themselves or a team member, along with due dates. All tasks are automatically aggregated across notes and made available on the ticker dashboard.

…and more


With an organized way to analyze the research process, portfolio managers, risk managers, and directors can drive transparency across the organization along with oversight into analysts’ recommendations. Management can quickly and easily ‘analyze the analyst,’ validating any investment recommendations being made as well as analyzing each team member’s strength, weaknesses and overall performance in a coherent and logical manner.


Research management that’s compliant

Compliance is at the forefront of every investment professionals thoughts these days. The entire financial ecosystem wants to ensure they are compliant while pursuing their mandates. Sentieo’s RMS helps investment management firms automate and enforce compliance requirements without putting undue burdens on analyst productivity

Our platform has been architected from the ground up to meet an asset manager’s ever increasing security and compliance demands. Sentieo has worked hand in hand with some of the world’s largest hedge funds to deliver fully synced compliance backend systems.

As analysts conduct research in Sentieo’s integrated and secure research environment, Sentieo works behind the scenes to provide data management, electronic recordkeeping, and communication control.

Given the sensitivity of research information, we offer a high-end encryption protocol, along with options for single-tenant and a virtual private cloud offering. These configurable options allow for the security equivalent of an on-premise solution along with the cost and maintenance benefits of a cloud solution.

Last, but not least, management and compliance have access to any and all information across the entire research platform via an administrative login or compliance dashboard. Sentieo automatically logs all activities and notes making compliance a breeze. An organization’s notes, including those synced via our OneNote and Evernote plugins, are versioned, easily searchable and available via an API to be stored in the firm’s data vault.

The overall result is a research workflow that makes teams happier, faster, and more efficient. For more information on our new RMS, e-mail us at hello@sentieo.com or request a free trial.

 


*Note: While we believe consumer-grade note-taking apps are not the ideal research management solution, the Sentieo Notebook can integrate with those apps and support compliance recordkeeping needs for users already using them. Your organization’s notes, including those synced via our OneNote and Evernote plugins, are versioned, easily searchable and available via an API to be stored in your data vault.

Technical Thoughts: Sentieo’s Alexa Skill and the Three Fundamental Laws of Voice User Experience $AMZN $GOOGL $AAPL

Sentieo’s Alexa Skill is live! We present some thoughts from our technical team recapping our experiences for the benefit of those who are keen on considering the future of computer interfaces.

For Voice User Interfaces (VUIs) to have any chance of success, the future direction of Voice User Experience (VUX) will be strongly tied to physical, not software, constraints.

The three features of these will be:

1) At least 100 words per minute (wpm) input

2) close to 200wpm output

3) under 250ms response time.

We are nowhere close.

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Fresh from Sentieo Mad Science Labs: Introducing the Sentieo Alexa Skill

When we say we want you to have your financial information wherever you go, we weren’t kidding. Whether AR or VR, autonomous vehicles or drones wins the next platform race, we think voice interaction is the future of human-computer interaction. So the mad scientists at Sentieo Mad Science Labs have put together the most data-packed stocks skill available on the Amazon Echo and released it into the wild, completely free to you.

Madness, you say?


Note: for a more serious discussion of where we think voice interfaces will go in the near future, head over to our Technical Thoughts.

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Major Update: All Roads Now Lead To The Sentieo Mobile App

Download links: iPhone | iPad | Android

We are very excited to finally roll out minor updates for Android and major updates across our suite of iOS apps. Alongside enterprise-level security upgrades (please ask your sales representative if this is of interest) and highly requested Stream/Watchlist updates, we wanted to highlight three ways we have completely blown open access:

  1. Deeplink from Sentieo Edge to the app
  2. One-touch access from your Notification Center to the app
  3. Clip any articles or PDFs to Sentieo through the app


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