These improvements will improve security analysis quality. We listened to what our users were saying and acted.
Hamilton, ON (PRWEB) March 31, 2012
Verdant Analysis developer of financial statement analysis software states that they have issued upgrades to their web application. The changes were made to improve the quality of analyses for their users.
“These improvements will improve security analysis quality,” says Jennifer Cameron, CEO. “We listened to what our users were saying and acted.”
The enhancements are in two areas. The first was to the company’s calculated beta and the second was to the frequency in which financial statement information was collected.
“We’ve always offered a beta, one that we calculate ourselves, but the change we introduced was to make it “live”. Although the accepted theory is that beta doesn’t generally change, there are exceptions to that rule. To reflect this, our beta is re-calculated each month, regressing the past 60 months of price data, and the appropriate risk free rate and market rate, depending on the country.”
The company uses three month U. S. Treasury bills for the risk free rate and proxies the market return using the S&P 500 for American securities. For securities that trade in Canada, the company uses the three month Canadian T-Bill rate and TSX return.
“Our users also asked for more frequent financial statement data collection,” Cameron adds, “We moved from a passive data collection methodology - one that basically looked for new data every three months after a stock was added to an active one. Now our software can “learn” the financial statement release schedule of the growing list of securities in our database.”
The end result is that financial statement information is picked up and offered to users within two business days at most and frequently the same day.
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.