The health and well-being of our employees, clients, investors, and partners are our first priorities. We hope that you are, and remain, well and safe.
Our Research Operations Remain 100% In Tact
COVID-19 is not disrupting our data collection and research. Our Robo-Analyst is more effective than ever. We cover more companies with more detailed models than any other research firm, as shown by this HBS & MIT Sloan paper.
Our research platform leverages technology that allows our team to work from home without any disruption to our processes. We look forward to providing you with the best earnings analysis during the upcoming quarterly earnings season.
Other Research Firms Face Major Disruptions
However, COVID-19 is seriously disrupting our competitors in data collection and research.
FactSet (FDS) reported in its latest 10-K that its “ability to gather content, may suffer” due to COVID-19. We expect the same is true of other legacy data providers.
All of these firms rely heavily on offshore data collection centers to power their financial databases. Serious COVID-19-driven lockdowns in India and other countries that house offshore operations are forcing many of the world’s largest banking and financial services institutions to shut down or onshore many core activities like data collection and support.
Disruptions Could Prevent Collection of and Research on 1Q20 Earnings Data
These lockdowns come at an inopportune time for financial markets. Companies start reporting earnings and filing their 1Q20 10-Qs this week.
Investors who rely on other research firms or data providers may not have access to updated data and will be unable to update their models with 1Q20 data.
Robo-Analyst Research Automation Is the Future
In his case study New Constructs: Disrupting Fundamental Analysis With Robo-Analysts, Harvard Business School professor Charles Wang posits that our Robo-Analyst represents a superior approach to collecting financial data and building models. In Core Earnings: New Data & Evidence, professors Charles Wang, Ethan Rouen and Eric So provide evidence that our Robo-Analyst, indeed, produces superior earnings analysis, which can also be used to make superior earnings estimates.
Find Opportunity In Adversity
A global pandemic like COVID-19 can simultaneously reveal weaknesses in traditional research operations and accelerate adoption of new technologies, like our Robo-Analyst.
Most investors take for granted that markets operate efficiently. The disruption in data collection operations could create inefficiencies and market volatility that our clients are uniquely positioned to survive and exploit.
Please contact me if you have any questions.
Diligence matters – especially now,
David Trainer, Founder & CEO
This article originally published on April 14, 2020.