Hamilton, ON (PRWEB) March 28, 2012
Verdant Analysis, maker of financial modeling software, is starting an investment analysis blog. The blog’s purpose is to show case the role that financial statement analysis can play in investment research.
The company has stated that each analysis will be objective and that the blog will not be a forum for touting securities nor making claims of unrealistic returns. Using an approach that analyzes a sector at a time, the ultimate result is unknown until the analysis is complete.
The company will log the results of each analysis using their Forecast tool. Forecast captures the current price and allows the user to record a projected price and the time period in which it will occur. The software then calculates an actual and projected return, allowing both the Forecaster and followers to monitor it.
Forecast will provide an independent account of each recommendation that comes out of the analyses.
Financial statement analysis, despite the wealth of information contained therein, remains one of the least performed activities when searching for investment candidates. The consensus is that it is too expensive and time consuming.
Verdant Analysis founder Jennifer Cameron concurs, “Extracting the valuable information contained in financial statements has traditionally been tedious, time consuming and frustrating. To get a true picture, you need to look at many similar companies, a process called horizontal analysis, and you need to look over several time periods, which is called vertical analysis.”
And within both the horizontal and vertical analyses the user might need to construct a dozen or more ratios or calculations. So, despite the perennial academic studies that demonstrate the power of this technique, it remains largely underutilized.
“When you look at financial statement ratios in context - compared to peers and over time, you begin to see patterns and things can start to make sense. Before Verdant, it was so expensive and time-consuming to analyze financial statements, it’s been underutilized and for many, even professionals, it’s rather obscure. This blog will help make techniques more accessible and very importantly, show the results – the return.”
Interested parties can follow the blog at http://security-analysis.blogspot.ca/ or on Twitter at @JenniferVerdant.
Verdant Analysis, Inc. (http://www.verdasis.com) improves the speed and quality of financial decision making by developing intuitive and powerful applications on top of a comprehensive, trust-worthy and flexible information infrastructure. The company vision is to increase the transparency financial markets by lowering the cost of analysis.