December 22, 2014

Quick Links to Tools

Introduction

Our mission at Further Data is to develop different ways of looking at market data. At your top right there are links to some tools we've developed to that end. They're explained below. Have a look, and if there's anything you'd like to see added to the list, let us know.

Insider Analysis

We've built an Insider Tool tool based on the ideas of Lauren Cohen, Christopher Malloy and Lukasz Pomorski in their paper Decoding Insider Information. The app tracks recent insider trader trading and uses further research to divide the trades made into Opportunistic or Routine categories.

Further Links and Resources

Berman Probability Bands

Probability Bands are a technical analysis tool developed by Larry Berman of ETF Capital Management. Prices above the upper band (the red line in our implementation) suggest the stock is overvalued, and prices below the lower band (the green line) suggest the stock is undervalued.

Further Links and Resources

Graham Analysis

Benjamin Graham, the father of value investing, is considered by many to be the inventor of modern security analysis. To illustrate his methods he took securities that were beside each other in the stock listings of his day and compared them using information drawn from their financial statements. See Chapter 18 in his seminal work, The Intelligent Investor for examples of this approach.

Our free online Graham Analysis Tool seeks to emulate this procedure. Note the numbers themselves are only a starting point for a discussion on valuation—your best investment will always be serious and diligent research into any securities you are considering buying.

Further Links and Resources

Greenblatt Numbers

Joel Greenblatt wrote a gem of a book in 2006 called The Little Book that Beats the Market. In it he lays out his "magic formula" and makes a convincing case for its effectiveness in beating the market. We have no connection with Mr. Greenblatt, but we are fans and we've provided an app that ranks companies on a given exchange according to his formulas.

Further Links and Resources

Key Statistics

Here we take a basket of valuation and revenue stats drawn from the trailing twelve month financial statements and offer a side by side comparison. It's particularily helpful when used on companies in similar industries—discrepancies have a way of jumping out when presented like this, and they can point you towards more promising avenues of research.