Blogs / Analysis [Analysis Blog]

Tracking Analyst Optimism in Palantir Finance

We examine an interesting study recently published in the April 2010 McKinsey Quarterly.  The study can be found here (registration required), and the results are further discussed here.  This study examines a phenomenon known as “optimism bias” – the tendency of analysts predicting company performance to over-estimate how well a company will perform.   Analysts are [...]

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Option Volume and Stock Prices

A 2003 paper by Pan and Poteshman entitled The Information in Option Volume for Stock Prices (found here), and highlighted by this 2006 New York Times article suggests that events in equity options markets can serve as predictors for trends in the stock market.  Their fundamental claims are two-fold:  first, that options traders are better [...]

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Reverse Stock Splits

A recent Motley Fool article discusses reverse stock splits and their implications for future performance: “Investors have to wonder:  Will reverse splits do any good, or are they basically the kiss of death for a company?”  With Palantir Finance, we can easily examine the short-term performance of companies that undergo reverse stock splits.  This question [...]

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