Bailey McCann, Opalesque New York:
New York-based Estimize, a startup focused on providing crowdsourced buy-side earnings coverage is branching out. The company launched Mergerize.com which will focus on covering merger and acquisition activity in a similar fashion. The company claims that Estimize coverage of public companies is over 60% more accurate than traditional sell-side analyst coverage, a claim which has been validated by the Deutsche Bank Quantitative Research team in a recent paper. To wit:
"We found multiple benefits to using the Estimize dataset; especially in the case of short-term applications in which accuracy is essential. Another interesting byproduct of the analysis was the power of crowdsourcing. We found that some of the value-added in the Estimize dataset was due to the "wisdom of crowds" effect as more predictions give way to greater accuracy. Moreover, the diversity of the contributors provides a greater spectrum of information which can potentially improve investment strategies based on estimates. Our initial findings show that the more timely Estimize forecasts provide greater short-term accuracy when compared to IBES."
The goal now is to replicate this with corporate actions on Mergerize. "We're going to start with M&A," Estimize founder and CEO Leigh Drogen tells Op......................
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