Here at Wall Street Horizon, tracking corporate events is our business, so as you’d expect, we watch these things very closely.
Solid Buildings Require Strong FoundationsIt seems like every software vendor is in the analytics business these days. This is especially true in the financial services space. Whether you're a quant, algo, hedge firm, prop trader, traditional asset manager, RIA, FA, or whatever, some vendor has a slick analytics app just for you.
Publicly traded companies are scrutinized more than ever today. Information about them is dissected and fed into investors’ models and trading strategies the instant it becomes available. When signals are detected, they trigger actions, often in microseconds. So having better information sooner is the name of the game.
Wall Street Horizon polled the investment community with a range of questions on corporate events. The results of the 2016 Corporate Event Research Survey reinforce that corporate events are critical to trading.
Download Full Report of the Results
In the U.S. financial markets, the witching hours occur between 3:00pm ET and 4:00pm ET when multiple classes of options or futures expire on the same day. Double witching (when two classes of options or futures expire) occurs on the third Friday of every month, except at the end of each financial quarter in March, June, September and December. In those months, quadruple witching occurs when contracts on stock index futures, stock index options, stock options and single-stock futures all expire. If you are wondering about triple witching, that became synonymous with quadruple witching in 2002 when single-stock futures began trading.
If you are looking for a good case study to support the research that says bad news is on the way when a company delays a scheduled earnings date, look no further than what happened to Valeant Pharmaceuticals yesterday.
If you watched last night's episode of 'Billions' on Showtime, you would have seen the Axe Capital trader Donnie Caan wearing a concealed microphone and recording device into work. The U.S. Attorney's Office suspected Donnie of insider trading and the only way he could keep himself out of jail was to capture evidence of his boss Bobby Axelrod committing a similar act.
For the past couple weeks I've been writing on this blog and in our newsletter about FDA drug approval dates (PDUFA dates) and the impact that these catalysts can have on a drug manufacturer's stock price. This week I thought I would let our partner Informa do most of the talking. And why not, considering their opinions successfully predicted 75% of the catalyst outcomes that occurred in Q4 2015!
Last week we announced a partnership with Informa to make FDA drug approval dates, also known as PDUFA (Prescription Drug User Fee Act) dates, available to clients through our new online application, Enchilada™. If you invest in or trade biotech stocks, chances are you know a lot about PDUFA dates. If you don't, let me start this blog post with a PDUFA 101 . . .
While our focus at Wall Street Horizon is on giving our clients the most accurate and up-to-date corporate event dates, we also maintain ten years of history on other event related information such as earnings per share, dividend payments, etc. As such we often times analyze this related information to see if we can spot trends that may help our clients with their investing/trading strategies or help our operations team fine tune their procedures for tracking down accurate event dates.