SENSEnews, a service brought to you by the people behind the semantic search engine hakia, is able to make sense of it all for investors. The system aggregates vast amounts of information such as facts, news events, financial interpretations, speculations, market factors, sentiments and reviews. Then, it plugs this knowledge into an intricate algorithm. The result is a computation of unrealized stock value. You know when your investments are overpriced or undervalued. You decide to sell, hold or buy more.
As the co-inventor of SENSEnews Dr. Riza Berkan, indicates, the average person cannot track and analyze such vast amounts of data. Whether we get our news from the media or through word of mouth, we are always a few steps behind in the information game. Therefore, SENSEnews offers an incredible advantage to traders and those who manage their own portfolio.
While the relationship between news and stock value have been studied in depth, the addition of social media to the mix elevates the conversation about the value of online word of mouth to a new level. Services like SENSEnews also underscore the importance of financial information companies release online. Through the funnel of SENSEnews, what companies publish about themselves, what the media say about companies and what citizens publish online can affect perceived stock value (and performance.)