You are a Research Analyst, so your opinion on the stocks you cover is read by thousands of people. You know the stocks you cover as well as anyone in the world. You speak to the CEO and CFO frequently. You listen to earnings calls. You build complicated models that capture your insights.
When you think you have something unique and important to write, you do it. It is those unique research calls that make or break your reputation (and the firm’s.) When you are right with your investment advice you gain accolades. When you are wrong, your clients let you know – sometimes with permanently negative results.
You do your channel checks and they give you information that gives you an advantage on the competition. Sometimes the competition gains the same advantage over you. You need a way to mitigate this risk and increasing the likelihood of making good research calls. You cannot make a big call and be wrong.
Tailor Research gives you the ability to reach a statistically significant amount of channel checks at a reasonable cost. Furthermore, Tailor can provide you the algorithmic analysis that you simply cannot do. Hundreds of algorithms developed by professors from respected universities have taken the information provided by the channel checks and made them the most statistically significant information possible. Furthermore, Tailor looks at your competitors, their past success, and provides you with a consensus estimate, adjusted for the findings from the channel checks. You now have a safe way to test your research calls versus the "street" and a comprehensive amount of channel checks.
If you have questions regarding the companies you cover and which are gaining market share and what the reasons are, or how a new product launch is going. You can get that information too.
Bottom line: Earnings calls no longer need to be a source of anxiety. Through Tailor Research, you are confident in what happened during the quarter. And if Management is not forthright during the call, you know that too. You can ask the difficult questions that question Management’s assumptions and lead to the full picture. You are simply a more sound research analyst.
EXAMPLE
Jack Smith, a Sell-Side Research Analyst, is deciding whether to make an important call on Goodyear Tires Inc. Jack, who works for a large bulge-bracket investment bank, wonders how much Goodyear Tires lowered price and how that affected this quarter’s volume during this tough economic time. The reason for his curiosity is that oil prices went from $140 a barrel to $70 and most of the cost of making a tire is from oil prices.
Jack knows that when the company announces earnings, it will be too late to make his call.
Jack logs into the Tailor Research platform and asks questions about how much Goodyear lowered price and how that affected volume. While doing so, he inquired about Goodyear’s competitors.
A short time later he logs back into Tailor’s platform and gets the results of his queries. Tailor’s research shows that Goodyear (and competitors) lowered the price of their tires by 6 percent on average. Furthermore, the lower price increased volume by 7%.
Tailor’s proprietary algorithms triangulate the volume and price data to come up with a revenue estimate for each tire company. The algorithms take into account the accuracy of the channel checks participating in the study—to give Jack the best end-market analysis available!
When earnings are released, Jack’s customers are impressed with his bold call.