Smart Phone Update - RIMM Sentiment Remains Behind Apple
September 2, 2009 in Financial
[prMac.com] Los Altos, CA - Crowd Technologies, Inc., provider of the stock prediction site Piqqem, today announced the August 31, 2009 sentiment results for the primary smart phone players which include Research in Motion, Apple, Nokia, and Palm. Research in Motion continues to trail Apple in sentiment by -7.8%, but leads Nokia and Palm by a sizeable margin.
"I always find this an anxious period waiting to see how a company's quarter is going to unfold. One thing I have discovered of value is to analyze a stock's sentiment relative to other similar companies. In this case, I will compare Research in Motion's Piqqem sentiment index to Apple, Nokia, and Palm. I'm looking for relative moves or changes that may foreshadow an early change in the quarter," said Jett Winter, CEO.
Sentiment Results as of 8/31/09 (Scale 0-4)
* Apple — 2.91
* Research in Motion - 2.68
* Nokia - 2.00
* Palm — 1.71
(Piqqem leverages the 'wisdom of crowds' by allowing its users to vote on the price direction of a stock and then applies its own propriety factors to calculate sentiment for a security. In their model, 0 is the lowest and 4 is the highest sentiment).
The above table shows Research in Motion's current sentiment as of 8/31/09 at 2.68 as compared to Apple at 2.91, Nokia at 2.00, and Palm at 1.71. This equates to Research in Motion's sentiment being -7.8% weaker than Apple, but 34.0% stronger than Nokia, and a whopping 56.3% stronger than Palm. Based on absolute sentiment, both Research in Motion and Apple fall into the Buy category, while Nokia and Palm come in as a Sell.
Change in Sentiment Since 6/30/09 Shows a Downward Bias
* Apple — (-1.9%)
* Research in Motion — (-3.96%)
* Nokia — (-25.2%)
* Palm — (-4.6%)
The change in sentiment for these four securities since 6/30/09 shows a downward bias with Research in Motion, Apple, and Palm all showing reduced sentiment and Nokia tumbling 25%. Changes in sentiment can be an early warning system for the underlying security. For example, Nokia's low absolute sentiment combined with the major drop in sentiment is a strongly negative signal. For Research in Motion their absolute sentiment and sentiment as compared to peers remains generally positive, but their decrease in sentiment since 6/30/09 is cause for concern.
Jett Winter is CEO of Crowd Technologies, Inc. a company that develops applications that leverage the wisdom of crowds. Their first major application is Piqqem which captures, processes, and presents sentiment data on the future price and price direction of publicly traded securities. Piqqem provides five types of sentiment on securities: i) Price Directional ii) Price Specific iii) Demographic iv) Relative (Stock vs. Stock) and v) Time-Based.