News Sentiment

These 3 drugmakers’ news sentiment consistently remains below industry average

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FiND study showed that the news sentiment for 3 drug-makers from top 25 pharma companies consistently remained below the industry average for the past 12-months. FDC, Sun Pharma Advanced Research and Caplin Point Laboratories were 3 companies whose short-term, medium-term and long-term news sentiment consistently stayed below the industry average for the past 12-months.

In our view, below industry average news sentiment for a prolonged period of time does not augur well for the company. Corporate communications team can step up media engagement at the appropriate time by picking up early signals for deteriorating news coverage.

Drugmakers Sentiment Consol chart - Short
[Image 1: Short-term news sentiment (50-DMA)] Read the rest of this entry »

Singapore Inc’s growth news flow hits 2-year high in Apr’18

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News flow related to growth-oriented business activities of Singapore firms touched the highest level in 2-years in April 2018, according to a study conducted by Heckyl, a leading Fintech engaged in news and financial data analytics. A surge in growth-oriented news flow signals improvement in the business confidence among companies listed in Singapore.

M&A, partnerships, product launch, contracts, and expansion were top 5 categories leading growth news flow for Singapore listed companies in April 2018. At the company level, Singapore Airlines Ltd, IHH Healthcare Bhd, and Comfortdelgro Corp Ltd led the growth news flow during April 2018. 

Heckyl has a clear focus on reduction of the information arbitrage by “discovery and analysis” of the news flow in real time. Heckyl’s FiND News and Sentiment Analytics product analyses news + data from thousands of sources (including social media) in real time. Our proprietary tagging algorithm can tag a specific news category to any news based on the keywords in that news item.

Singapore Growth Sentiment 2-yr - Small size[Image 1: Search by Tags screen for Singapore] Read the rest of this entry »

FiND study proves news sentiment as a lead indicator for deterioration in financials

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77% of companies with “below industry average news sentiment” witnessed a deterioration in financials

FiND Credit Risk Early Warning System (EWS) captures company related red-flags through analysis of millions of data points and news. Unstructured data sets such as “news” are an important piece of information that can be consumed in the risk assessment of corporate borrowers.

Our hypothesis is that the news sentiment acts as a lead indicator to the deterioration in the company’s financial performance. To test this hypothesis, we back-tested news data of 2,250+ companies for the year 2016 on the following business rule:

Company’s news sentiment average stays below the industry average for all 4-quarters in CY16

We identified 924 such companies. Then, we checked if there is any deterioration in the quarterly financial performance (measured by the score of financial business rules) for these companies in the next 4-quarters (CY17).

For 77% of companies (714/924), we found that A. The number of red flags on quarterly financials outpaced the number of green flags in CY17 and B. The net score of red flags was lower than minus 10 for all 4-quarters in CY17.

We have highlighted 3 such companies whose news sentiment remained below the industry average for all 4-quarters in CY16.

SPREAD

We have also listed quarterly result charts for these 3 companies which highlight a deterioration in their financial performance in the subsequent quarters.

SML Isuzu Read the rest of this entry »

Dr. Reddy’s news sentiment lowest among BSE500 cos

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FiND media coverage study showed negative news sentiment for one-in-ten BSE500 companies during January 2018.

Dr. Reddy’s Laboratories Ltd, one of the leading drug makers in India, is one such company whose news sentiment has deteriorated significantly during the month of January 2018.

We highlight media coverage trends for Dr. Reddy’s below:

#1. News sentiment decelerates ahead of fall in the stock price
Dr Reddys - Sentiment - Chart
[Image 1: Sentiment Score 20 DMA versus Stock Price Performance]

#2: At negative 37, Dr. Reddy’s sentiment score 20-DMA was the lowest among its peers
Dr Reddys Sentiment comparison[Image 2: Sentiment Score Peer Comparison] Read the rest of this entry »

Extremely bullish news sentiment supports oil price rise: FiND

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Crude oil price has demonstrated a strong rally over the past 5-months. On Thursday, crude oil WTI futures jumped above USD 66 per barrel for the first time in more than three years. The rally in crude oil prices was supported by OPEC’s extension of production cut, strong demand and continuous drop in the US stockpiles of crude oil.

FiND, an alternative data platform developed by Heckyl showed the demand for crude oil has been outstripping supply consistently since February last year (Image 1).

Oil Demand Supply
[Image 1: Crude Oil Supply-Demand Balance]

At the same time, the US crude oil inventories have been witnessing downtrend for the past 10-months (Image 2).

US Oil Inventory
[Image 2: US Crude Oil Inventory] Read the rest of this entry »

Oil prices can play spoilsport to airline stocks rally

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2017 was a fantastic year for airline stocks as relatively lower oil prices, higher demand and improved operational performance brightened the outlook for the sector. However, after a solid performance last year, the global airline industry is bracing for an oil shock in 2018. The recent run-up in oil prices, if sustained, may exert a significant drag on airlines profitability in this year.

Stock returns
[Image 1: Watchlist highlights stock returns for leading airlines as on Jan. 24, 2018
(*For US-based companies, returns as on Jan. 23, 2018)]

In 2017, jet fuel prices averaged at USD 1.5 per gallon for the first 3-quarters. A spike in crude oil moved jet fuel average price to USD 1.74 per gallon in Q4’17 from USD 1.59 per gallon in Q3’17. The impact of 9.4% sequential rise in jet fuel prices in Q4 was clearly visible in recently announced quarterly numbers of leading airlines.

For instance, Delta Air Lines witnessed an 8% y-o-y drop in net income in Q4’17 owning to 21% rise in fuel cost. At the same time, CASM (cost per available seat mile) – Fuel for Delta rose significantly by 38.67% sequentially to USD 0.03 in Q4’17.

Delta - CASM Fuel
[Image 2: Compare screen highlights trend for Delta Air Lines’ CASM – Fuel and Jet Fuel] Read the rest of this entry »

Tesla dominates media coverage among major automakers in 2017

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Product launch, alternative energy top news topics for global automakers 

Surge in news volume highlighting alternative energy signals the automotive industry is moving towards electric vehicles at top speed

Tesla Inc. topped the media coverage among 20 major global automakers in 2017 followed by Volkswagen, Ford Motor, and Toyota (Image 1). Tesla generated a lot of media frenzy around its market launch of Model 3 and unveiling of Roadster and Tesla Semi during this year.
Top 20 - Share of Voice
[Image 1]

FiND, an alternative data platform showed a surge in news flow highlighting alternative energy for all major automakers globally (Image 2). Automotive product launches generate lots of media coverage and thus it topping the list is understandable.
Category Wise News Flow
[Image 2]
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