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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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  • DryShips, Inc. (DRYS) Getting Some Negative Coverage In The Media 1 comment
    Apr 25, 2013 8:34 PM | about stocks: DRYS

    Judging by recent news coverage on DryShips, Inc. (NASDAQ: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.

    Stocks: DRYS
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  • Duffau
    , contributor
    Comments (2) | Send Message
    Time to buy. But do it before earning this week.
    21 May 2013, 12:27 AM Reply Like
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