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Contextuall was founded on the belief that people’s online activities are a leading indicator of what they plan to do in the future. - Before you buy a car, you search for the best deals online - If you just lost your job, you tweet about it - If you’re visiting your local shopping mall, you... More
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  • Media Coverage On Semiconductor: Bullish On Synopsys Inc. (SNPS) (Apr-22)

    The financial media and blogosphere may have turned bullish on Synopsys Inc. (NASDAQ:SNPS), but should you follow them?

    After all, shouldn't such extreme optimism in the media raise a flag? Can the company continue to exceed such lofty expectations?

    Trading on Investor Herd Behavior

    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 why we built Contextuall's sentiment technology.

    By detecting herd behavior for specific stocks and industries, our users can lower their risk, and perhaps even profit, from the one-sided groupthink of others.

    Sentiment Stats: Synopsys Inc. (SNPS) Compared to the Semiconductor Industry

    Based on an analysis of recent Synopsys Inc. (SNPS) news articles, about 46.58% of headlines have been classified as Positive, higher than the Semiconductor industry average of 28.03%.

    2.74% of headlines have been classified as Negative (vs. an industry average of 13.03%).

    So, considering this extreme optimism, relative to industry averages, is most of the good news already priced into the stock?

    Thoughts? Let us know in the comment section to the right.

    Tags: SNPS
    Apr 22 2:59 PM | Link | Comment!
  • Latest News On Biogen Idec Inc. (BIIB) Has Been Very Bullish (Apr-22)

    Our analysis shows that the media and blogosphere have turned bullish on the outlook for Biogen Idec Inc. (NASDAQ:BIIB), but is this extreme optimism a cause for concern?

    After all, is it realistic to assume that the company can continue to exceed such lofty expectations?

    Trading on One-Sided Investor Sentiment

    Several behavioral finance studies have shown that investors tend to over-react to the most recent events. In other words, they overweight the the importance of recent information.

    This means that investments may drop below fair value during periods of negative news, or rise above fair value during periods of positive news.

    This is why we built Contextuall's sentiment technology.

    By detecting herd behavior for specific stocks and industries, our users can lower their risk, and perhaps even profit, from the one-sided groupthink of others.

    The Stats: Evaluating Media Sentiment for Biogen Idec Inc. (BIIB)

    Contextuall's sentiment analysis algorithm analyzed recent Biogen Idec Inc. (BIIB) news articles, and 62.0% of headlines have been classified as Positive, higher than the Biotech industry average of 25.88%.

    2.0% of headlines have been classified as Negative (vs. an industry average of 13.17%).

    So, considering this extreme optimism, relative to industry averages, is most of the good news already priced into the stock?

    Send us your comments and your thoughts on the outlook for the company.

    Tags: BIIB
    Apr 22 2:58 PM | Link | Comment!
  • Media Coverage On Industrials And Manufacturing: Bullish On ABB Ltd. (ABB) (Apr-22)

    After analyzing the sentiment of recent news headlines on the Industrials and Manufacturing industry, it becamse apparent that the media has turned bullish on shares of ABB Ltd. (NYSE:ABB).

    But should you be buying into this optimism, or is this a extreme bullishness a contrarian signal?

    Trading on Investor Herd Behavior

    Overwhelming consensus on a company can drive stock prices beyond their true fundamental value--understating or overstating inherent risks. These mispricings often present an opportunity for investors willing to go against conventional wisdom.

    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.

    Analyzing Media Sentiment for ABB Ltd. (ABB)

    Based on an analysis of recent ABB Ltd. (ABB) news articles, about 55.0% of headlines have been classified as Positive, higher than the Industrials and Manufacturing industry average of 28.32%.

    7.0% of headlines have been classified as Negative (vs. an industry average of 13.14%).

    Considering our note on investor herd behavior, is this extreme optimism a contrarian signal? With investors turning so bullish, how much upside is left?

    Any comments? Let us know in the comment section to the right.

    Tags: ABB
    Apr 22 2:55 PM | Link | Comment!
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  • $$ [new post] Intelligent Machines Reading the News, and Predicting the Future http://bit.ly/16juxxB
    Apr 30, 2013
  • $$ Just launched a graphical news sentiment tool for major companies--any thoughts? Please let us know :) http://bit.ly/ZlN89l
    Apr 23, 2013
  • $$ List of most bullish sectors and industries, based on aggregated tweets over last 24hours http://bit.ly/XIyyI0
    Apr 2, 2013
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