How *you* read earnings announcements

D

dbodoff

Dear Traders

I can really use your assistance. My name is David. I'm a business school professor who helped build the SEC's EDGAR website, where the SEC posts companies' earnings announcements. We are doing research to help us understand how people *read* earnings announcements? Do you think you can spare 5 minutes to help us do this short exercise? It would help us a lot. You are the kinds of people we care about....

Thanks a lot if you can help us with 5 minutes of your time to complete this exercise.
https://forms.gle/VTjbLe8sF8FiKKnHA


With sincere thanks,

Dr. David Bodoff
 
The entire notion of "earnings reports" is a SCAM!

Companies low-ball pre-report estimates... but the stocks don't go down because of it. Then, when companies "beat" low-balled (phony, manipulative) estimates... the stock bounces. That's why stocks which "miss by a penny" often dip/tank. It's because they were supposed to easily "beat" low-balled estimates but came up short of even that. That is... "things are worse" on the earnings front than even low-balled estimates.

Shameful manipulation!
 
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Indeed, these (and other issues) are the sorts of things we are studying. (please help us by doing the short exercise? We need to *prove* things...) Thanks!
 
Scataphagos said:
The entire notion of "earnings reports" is a SCAM!

Companies low-ball pre-report estimates... but the stocks don't go down because of it. Then, when companies "beat" low-balled (phony, manipulative) estimates... the stock bounces. That's why stocks which "miss by a penny" often dip/tank. It's because they were supposed to easily "beat" low-balled estimates but came up short of even that. That is... "things are worse" on the earnings front than even low-balled estimates.

Shameful manipulation!
More...


Yelling, kicking and screaming won’t help :)
Filling out professional surveys might...
 
guru said:
Yelling, kicking and screaming won’t help :)
Filling out professional surveys might...
More...

Indeed!

Scataphagos said:
Companies low-ball pre-report estimates... but the stocks don't go down because of it. Then, when companies "beat" low-balled (phony, manipulative) estimates... the stock bounces. That's why stocks which "miss by a penny" often dip/tank. It's because they were supposed to easily "beat" low-balled estimates but came up short of even that. That is... "things are worse" on the earnings front than even low-balled estimates.

Shameful manipulation!
More...

Oh, please, Scatman. Drink that second cup before you post.
Mutatis mutandis and all that: If there were any sort of systematic relationship as you imply, then the market would be 100% workable any ol' day of the week, which it's not. A low-balled company would be bid up before earnings, which they're not in any sort of reliable way. As well, why wouldn't the overall market sell after an earnings release, and devote capital to a closer-to-post-earnings-pop share? As with a pop, such sell-offs occur maybe 50% of the time -- worthy of a coin toss, *not* worthy of trading capital.

"Price Theory! Git you some!"

(This message brought to you by Friedman Stigler & Associates, a loyal partner in Booth Industries, Chicago, IL 60611.)
 
Most comments by those who are not completely dismissive of earning reports - like tommxginnis - point to the fact that if they were systematically low-balled the price would have risen before the report came out. An equally compelling way to look at it is that if the report didn't carry information, there would not be a spike of trading volume after the report. In other words, to show the report has information one doesn't need to show that prices move after the report. One onky needs to show that people trade more after the report. And they really do. Evidently the reports convey information.
(But can someone please help us out by clicking the link and completing our 5 minute research exercise? Pretty please? Thanks!)
 
dbodoff said:
Dear Traders

I can really use your assistance. My name is David. I'm a business school professor who helped build the SEC's EDGAR website, where the SEC posts companies' earnings announcements. We are doing research to help us understand how people *read* earnings announcements? Do you think you can spare 5 minutes to help us do this short exercise? It would help us a lot. You are the kinds of people we care about....

Thanks a lot if you can help us with 5 minutes of your time to complete this exercise.
https://forms.gle/VTjbLe8sF8FiKKnHA


With sincere thanks,

Dr. David Bodoff
More...

Hey Prof,

Your question "Based on Q2 forecast, ......

Looks like a typo than a trick question.

- Teacher's Pet
 
I tried doing the survey.
unfortunately the survey is not for me.

Because I don't bother about earnings details.
and I don't read those reports.

I just need to know when it will be announced.
 
maxinger said:
I tried doing the survey.
unfortunately the survey is not for me.

Because I don't bother about earnings details.
and I don't read those reports.

I just need to know when it will be announced.
More...

Actually your case is quite interesting. But thank you for having a look....
 
dbodoff said:
Dear Traders

I can really use your assistance. My name is David. I'm a business school professor who helped build the SEC's EDGAR website, where the SEC posts companies' earnings announcements. We are doing research to help us understand how people *read* earnings announcements? Do you think you can spare 5 minutes to help us do this short exercise? It would help us a lot. You are the kinds of people we care about....

Thanks a lot if you can help us with 5 minutes of your time to complete this exercise.
https://forms.gle/VTjbLe8sF8FiKKnHA


With sincere thanks,

Dr. David Bodoff
More...

Really? "People" are reading earnings announcements? I thought AI text recognition algos are "reading" the stuff? :sneaky:
 
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