Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
1998-04-09
2001-05-22
Stamber, Eric W. (Department: 2765)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S026640, C705S014270
Reexamination Certificate
active
06236980
ABSTRACT:
BACKGROUND—FIELD OF INVENTION
This invention relates to a computer-based system in the financial investment field, specifically a reporting structure that aids in the decision making on a single security or single element at a time or decision making on a hierarchy of recommendation sources for securities.
BACKGROUND—DESCRIPTION ART
The invention was conceptualized, designed and implemented in a quest to find answers to questions like:
Which of the financial magazines, like Barrons, Business Week, Smart Money, Money, Forbes, and Worth, give out the best performing recommendations of specific securities or strategies through articles and columns?
Can one make money following a recommendation in a magazine after one receives the magazine, and gets a chance to act on it? Or, is it too late?
If it is too late, the prices generally have peaked by the appears, can you make money by shorting or taking the opposite position from the recommendation?
Which of the columns has the best investment record?
Which of the columnists has the best investment record?
How do articles with well thought out strategies and ideas perform over time?
How do the recommendations of specific securities fare over time?
If a security/strategy is recommended in a magazine, online source, or broadcast media and the price of the security has significantly appreciated in the week or other prior period before the average investor has a chance to act on the recommendation, could an opposite strategy from that in the article be adopted to realize gains?
It was broadened during the implementation process to include online (or Internet) sources of articles containing security recommendations, and to include broadcast recommendations.
What other securities has a favorite recommendor recently recommended?
In researching a purchase or investment decision on an element, what do the popular magazines recommend about that element?
Prior developments in this field may be generally illustrated by reference to the following patent and product:
U.S. Pat. No. 5,132,899, Inventor: Fox, Phillip J., Date: Jul. 21, 1992
Stock and Cash Portfolio Development System—The system integrates three areas of data including investment performance for investment managers to generate a list of stock and cash position. Product: Hulbert Financial Digest newsletter publishes a summary of tracked results for portfolio performance of newsletters.
The Fox patent came up in a patent search because it was a computer-based application that included one or more databases about securities and about investment managers. Additionally, the end result of the Fox invention was a final report that included an investment recommendation. However, we found the Fox patent to be quite different than the present invention because the Fox patent generates a portfolio of securities and cash position, whereas one purpose of the current invention is to generate a report of the investment recommendations of a single security at a time. The invention report also optionally includes a summary of the reasoning for the recommendation, which the Fox patent was not intended to address at all. The invention report also optionally includes subsequent performance of the recommendations and sources of the recommendation. Finally, the current invention follows the recommendations made by financial magazines, online sources, and broadcast programs whereas the Fox patent had nothing whatsoever to do with the recommendations made by these sources, thereby resulting in a different invention.
The Hulbert product was identified as prior art because it rates the investment performance of a specific kind of published source. However, the Hulbert product is quite different in a few fundamental ways. The first is that the current invention is a computer-based application whereas Hulbert is not. Additionally, the Hulbert product does not allow for an interactive mode that allows the user to choose the element for which they want to view the recommendations of whereas the essence of the current invention does just that. Even if Hulbert were computerized, that product's focus is on the overall portfolio performance of a newsletter as contrasted to the current invention which is primarily focused on the performance of an individual security recommendation (primarily found in sources other than those followed by Hulbert) and the hierarchy of its recommendation sources (author, column, financial magazine, online sources, etc.).
There is no product similar to or the same as the invention using a computer system and algorithms to provide a security recommendation reporting system that is based on recommendations of securities in various published magazines, online sources, or broadcast programs.
OBJECTS AND ADVANTAGES
Accordingly, several objects and advantages of my invention are:
The invention can be used to answer the question: Can you still make money on a stock recommendation after it has appeared in a widely followed magazine or broadcast?
The invention can reveal the performance track record of sources—to aid in determining whom to follow or what strategy to follow.
With one click you can see the performance of other securities in the articles to see if the overall strategy of the article has paid off compared to the market.
The user saves time by getting, in one place, the summary of articles, from a large variety of sources, that are recommendations about the single element he or she is interested in.
The user gets more views, from quality sources, to corroborate other articles and understand more of the risks of the security they are interested in.
Furthermore these views are considered by some to be substantially less biased than opinions from brokerage houses that issue their own research reports. These brokerage houses are suspected of issuing favorable reports (and withholding negative recommendations) because they receive direct income from the investment banking business of the companies they cover and by churning the market of their retail customers thereby directly earning more brokerage transaction fees. Magazines and broadcast sources are generally thought to be unbiased.
Further objects and advantages of my invention are:
If you like an advisor, column or any source, with a single click you can see other recent recommendations by the same source.
The invention can help a user find advisors with pleasurable rides (those whose recommendations mostly stay above the initiation price) and avoid those with painful rides (those whose recommendations mostly stay below the initiation price). With advisors with high pain indexes, one could choose to follow them by taking the opposite investment action of what they recommend.
Users can be automatically notified of new recommendations by a strong performing stock picker mentioned in leading financial magazines or numerous other popular sources.
A user can see if a favorite advisor's key predictions about a company (i.e. will come out of a turnaround, will release a major new product, is a likely acquisition target, etc.) have come true in a reasonable time period.
Therefore this gives the user more of a reason to listen to this advisor when the advisor uses the same reason on another company.
The invention is a quick source of target prices for each security (from multiple sources) to help an individual in setting their target.
Researchers can look for and test particular general reasons and related variables which, if mentioned in an article, are hoped to have a relatively predictable effect on gains or losses, which can be exploited for profit.
Additionally, the invention could be utilized to display the recommendations of elements other than securities. For example, the system could display the recommendations for computer parts from well-respected computer analysts across a multitude of magazines, online sources, and broadcast media.
The invention could also report on the performance of securities that are merely mentioned in magazines, online sources, an
Meinecke-Diaz Susanna
Stamber Eric W.
LandOfFree
Magazine, online, and broadcast summary recommendation... does not yet have a rating. At this time, there are no reviews or comments for this patent.
If you have personal experience with Magazine, online, and broadcast summary recommendation..., we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Magazine, online, and broadcast summary recommendation... will most certainly appreciate the feedback.
Profile ID: LFUS-PAI-O-2530949