What is Equity Analysis™?

Helping IROs understand short-term market structure to maintain long-term peace of mind.

ModernIR Overview	View Equity Analysis Demo
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ModernIR pioneered market-structure analytics for investor relations. Our Equity Analysis™, a unique trading intelligence service, helps investor relations professionals understand the behavior driving changes in stock price and volume. How do we do it? We map market structure by categorizing executed order flow mathematically in context of market rules.

Without Equity Analysis, this chart with intraday range and closing price says little except price and volume are rising. Even if your surveillance provider tells you “Millennium” is buying, how do you know if it’s for investment purposes and not for speculation or portfolio trading?	But with Equity Analysis, we can see how speculative bets drove price up in early November, and how speculation and churn (artificial volume) have combined to create a bubble in market structure that could deflate quickly on any negative news.

How can I apply this information to my IR program?

Answers. Measures. Actions.

First, you know your share price reflects speculation, not investment. Second, if there was news or outreach coinciding with speculative bets Nov 1-2, you have measures of what kind of money reacted. Third, you can now take actions, such as tactically targeting value money in case speculators suddenly depart.

And much more. With Equity Analysis, you can have real answers in equity markets ruled by anonymity:

• Is speculation setting price?
• Are rational investors buying or selling shares?
• Is our price at a premium or discount to Rational Price?
• What can we expect our stock to do if we miss/meet/beat earnings expectations?
• How did market structure change when we met with investors last week?
• Are analyst upgrades or downgrades generating institutional or retail reactions?
• When should we target growth vs. value investors?
• How did options expirations affect program and speculative trading behaviors?
• Which sell-side firm has the most influence on our trading?
• Which sell-side firms change the rest of the behaviors in our trading market?
• How does institutional rotation affect our investor relations efforts?
• How can we time news, to the extent possible, around market events like options expirations and index rebalancing?

With context, your trading activity can tell you a great deal about what investors think, where you should focus your IR efforts, and what's likely to happen to your stock price next.

What's included with Equity Analysis?

ModernIR has three service tiers, from do-it-yourself, to detailed notes on trading each day. What's best depends on how often you and your management team require information. Our most popular plan is Value Equity Analysis™, a once-weekly blueprint with unlimited support that includes:

Equity Analysis™ Service Plan
	Equity Analysis™ snapshot report with supporting executed order flow by broker-dealer
	Adobe Flash interactive commentary to review the snapshot report
	Market Structure Report for management with trading themes, trends and supporting graphs
	Scheduled call with your ModernIR analyst to review your trading data
	Unlimited phone and email support
	No contract term; we earn your business month to month.

Intrigued? Request a demo to learn more. Better yet, try us out. Find out what you don't know about your trading with a 30-day no-obligation trial.

Call today. 303-377-2222

EMC has used ModernIR’s market-structure analytics for several years now.

Trading activity is complex today, reflecting price-setting forces with varying purposes and time horizons. We want to know more about what’s setting price, what risks exist, how our shares are being used by different trading behaviors, and what sellside firms and trading desks are most influential in driving various behaviors.

With the weekly updates and other information, we are able to better understand the ongoing changes in market structure and the dynamics that are constantly buffeting our stock price.

Tony Takazawa
EMC (NYSE: EMC)

See what else your peers are saying about Equity Analysis >>

• How can I use Equity Analysis as part of my IR program?
• Is Equity Analysis stock surveillance?
  
• What is "Rational Price™"?
  
• How can I communicate market structure themes to my management?
  
• Our department has been cutting back on costs. Is Equity Analysis affordable?
  
• How does Equity Analysis help me get more value from investor outreach?
  
• How do we know whether to focus on value or growth investors?
  
• How will you help me use Equity Analysis?

Check out our other FAQs >>

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303-377-2222

Market Structure Map

Our weekly Market Structure Map provides unique insights — free — on trading markets, with an exclusive focus on helping investor-relations professionals keep cool in the IR chair.

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