CEO of First Rain, Penny Herscher, recently posted an article commenting on the relationship between rumors, news announcements, and stock prices. Charting blog volume on Apple CEO-Steve Job’s health; formal news announcements on his health condition; and the company’s stock price, simple analysis showed that blogs can play a crucial role in putting investors ahead of the game.
“This is an example of the type of thing we see in FirstRain all the time. Blogs are ahead that something is up. They are often written by specialists with inside visibility into what’s changing – in this case people close to Apple. News follows and the stock moves on news, but that’s the same time everyone else gets the information.”
There is a lot of information on the world web wide and some of it can be used as an additional cost effective tool for analysts and investment decisions. Many analysts have begun using RSS feeds to stay informed, save time, and find tradable information and investment ideas.
FirstRain, a provider of search-based research applications for investment professional, searches over 30,000 sources, including mainstream business sources; premium subscription sources; sector and industry-specific web sites; blogs and message boards; local, regional, and national news; investigation coverage; and SEC and legal filing, for tradable information for investors.