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$$ [new post] Intelligent Machines Reading the News, and Predicting the Future http://bit.ly/16juxxB Apr 30, 2013
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$$ Just launched a graphical news sentiment tool for major companies--any thoughts? Please let us know :) http://bit.ly/ZlN89l Apr 23, 2013
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$$ List of most bullish sectors and industries, based on aggregated tweets over last 24hours http://bit.ly/XIyyI0 Apr 2, 2013
Latest Comments
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Duffau on DryShips, Inc. (DRYS) Getting Some Negative Coverage In The Media Time to buy. But do it before earning this week.
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livepat41 on Stock Sentiment Analysis: J2 Global, Inc. (JCOM) When will the 11 Mil short start to cover?
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David Neubert on Top Insider Sales: Aug, 29, 2012 (DLB, ALXA, ROG, SJM, MPWR, PLXS, WHG, TRMB, CWT, UGI) Wow looks like the insiders at Smuckers ($SJM) ...
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Zuckedcompany on Top Insider Sales: Aug, 8, 2012 (BKCC, VRTU, MXIM, BNHN, MOLX, WSCI, BPL, SCHW, GPN, CSCD) Lots of Linkedin Insider selling this week and ...
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- Stock Sentiment Analysis: J2 Global, Inc. (JCOM) (1 Comment)
- DryShips, Inc. (DRYS) Getting Some Negative Coverage In The Media (1 Comment)
- Top Insider Sales: Aug, 8, 2012 (BKCC, VRTU, MXIM, BNHN, MOLX, WSCI, BPL, SCHW, GPN, CSCD) (1 Comment)
- Top Insider Sales: Aug, 29, 2012 (DLB, ALXA, ROG, SJM, MPWR, PLXS, WHG, TRMB, CWT, UGI) (1 Comment)
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DryShips, Inc. (DRYS) Getting Some Negative Coverage In The Media
Judging by recent news coverage on DryShips, Inc. (DRYS), it should be noted that the media thinks there's significant trouble ahead for the stock.
Trading on One-Sided Investor Sentiment
There have been academic studies that show investors tend to place too much importance on recent information, also known as psychological anchoring.
During periods of negative news, investors may continue to sell a stock, pushing it below its fair value. Conversely, during periods of positive news, investors may get overly optimistic and push the stock beyond fair value.
This is the goal of Contextuall: to identify examples where herd behavior has reached extreme levels.
We believe that, by identifying these areas of one-sided sentiment, investors could use these contrarian signals as a starting point for their own research.
Media Sentiment on DryShips, Inc. (DRYS), Compared to Other Companies in the Shipping Industry
Contextuall's news sentiment algorithm analyzed recent DryShips, Inc. (DRYS) headlines, classifying 20.0% of headlines as Positive, vs. the Shipping industry average of 21.29%.
33.75% of headlines have been classified as Negative, vs. an industry average of 14.15%.
Considering our note on investor herd behavior, is this extreme negativity a contrarian signal? With investors running for the exit, is this the time to buy?
What do you think? Let us know in the comment section.
List Of Undervalued, Highly Liquid Stocks, With Negative News Coverage
1. Body Central Corp. (BODY)
Key Stats: Price to Earnings growth ratio at 0.63, Price to Cash ratio at 3.67, and Quick Ratio at 1.64.
2. Cato Corp. (CATO)
Key Stats: Price to Earnings growth ratio at 1.06, Price to Cash ratio at 3.48, and Quick Ratio at 1.56.
3. Chemtura Corporation (CHMT)
Key Stats: Price to Earnings growth ratio at 0.85, Price to Cash ratio at 5.44, and Quick Ratio at 2.24.
4. Intel Corporation (INTC)
Key Stats: Price to Earnings growth ratio at 1.06, Price to Cash ratio at 6.63, and Quick Ratio at 2.06.
5. Maxwell Technologies Inc. (MXWL)
Key Stats: Price to Earnings growth ratio at 0.60, Price to Cash ratio at 7.60, and Quick Ratio at 1.67.
6. Perry Ellis International Inc. (PERY)
Key Stats: Price to Earnings growth ratio at 1.02, Price to Cash ratio at 4.86, and Quick Ratio at 1.54.
7. Tilly's, Inc. (TLYS)
Key Stats: Price to Earnings growth ratio at 0.91, Price to Cash ratio at 6.44, and Quick Ratio at 1.58.
8. TAL Education Group (XRS)
Key Stats: Price to Earnings growth ratio at 0.71, Price to Cash ratio at 2.89, and Quick Ratio at 1.57.
Bad News Priced In? List Of Oversold Short Squeeze Candidates With Negative News Coverage
1. Accretive Health, Inc. (AH)
Key Stats: RSI(14) at 34.08, with short float representing 11.23 days of average trading volume.
2. Alexander's Inc. (ALX)
Key Stats: RSI(14) at 25.28, with short float representing 11.70 days of average trading volume.
3. Country Style Cooking Restaurant Chain Co., Ltd. (CCSC)
Key Stats: RSI(14) at 31.78, with short float representing 19.79 days of average trading volume.
4. Central European Media Enterprises Ltd. (CETV)
Key Stats: RSI(14) at 34.79, with short float representing 39.28 days of average trading volume.
5. Citizens Inc. (CIA)
Key Stats: RSI(14) at 24.87, with short float representing 16.09 days of average trading volume.
6. Cal Dive International Inc (DVR)
Key Stats: RSI(14) at 34.75, with short float representing 13.95 days of average trading volume.
7. Gentium S.p.A (GENT)
Key Stats: RSI(14) at 33.97, with short float representing 10.60 days of average trading volume.
8. Globe Specialty Metals, Inc. (GSM)
Key Stats: RSI(14) at 31.21, with short float representing 10.87 days of average trading volume.
9. Pep Boys - Manny, Moe & Jack (PBY)
Key Stats: RSI(14) at 30.92, with short float representing 12.63 days of average trading volume.