Fin-buzzTM is highly intuitive and easy to use. Here are just a few, simple examples of the numerous ways in which it can be used to provide insight into market sentiment and its affect on share prices.
Examples
Impact of Different Types of Good News
This chart shows the impact of different types of news announcement on sentiment for BAE Systems during February, 2009. The earnings announcement on 19th February generated strong positive sentiment throughout that day while the combination of City analyst comment, union support and a significant order story on 24th February generated similar sentiment. Despite the obvious benefit of good news, Fin-buzz reveals that positive sentiment can decay rapidly following a news announcement and frequently tails-off completely overnight.
Portfolio Spectrum - trading as Spectrum - is not authorised by the Financial Services Authority to give financial advice
Impact of Bad News
This chart shows the impact of bad news on sentiment for British Airways when it posted losses during February, 2009. The loss announcement on 6th February generated negative sentiment, going from bad to worse throughout that day. Although sentiment picked up over the weekend of 7th and 8th February on the Monday it dropped, rose and was dropping again until a positive report from Merrill reversed the slide.
Portfolio Spectrum - trading as Spectrum - is not authorised by the Financial Services Authority to give financial advice
Anatomy of an Earnings Announcement and Its Impact on Share Price
No sector has been more volatile than banking. The example below shows sentiment for Lloyds Banking Group against the company's share price around its 2008 earnings announcement. Sentiment and share price follow similar trends leading up to the announcement on 27th February, 2009. Immediately following the announcement, which revealed major problems created largely by LloydsTSB's merger with HBOS, shares for the Lloyds Banking Group dropped sharply, though sentiment dipped only slightly. By late morning, although the share price continued to fall, sentiment turned upwards; and shortly after this the share price, too, started to rise. Of course it is impossible to predict the future - anybody saying otherwise is living in a fool's paradise - but as this example demonstrates it is possible to assess the probability of likely outcomes based on key insight. Note: Fin-buzz does not show share price, which has been added to the chart below for clarity.
Portfolio Spectrum - trading as Spectrum - is not authorised by the Financial Services Authority to give financial advice
Measuring the Likely Effect of News on Share Price
The following chart shows share price tracked against sentiment and news stories for Prudential during the first three weeks of March, 2009. One of the most striking points of this chart is the richness of information that Fin-buzz can generate. While the chart shows data in a historical context, through Fin-buzz this could all have been viewed in real-time as the coverage and its sentiment unfolded. Note: Fin-buzz does not show share price, which has been added to the chart below for clarity.
Portfolio Spectrum - trading as Spectrum - is not authorised by the Financial Services Authority to give financial advice
