WhisperNumber.com Frequently Asked Questions
The premise of the data is simple: A stock price is more likely to move higher when the company exceeds the whisper number, and lower when it misses. Our focus is on a company's price 'reaction' to the whisper number expectation. WhisperNumber.com provides actionable data on earnings announcements.
The purpose of the site and the data we provide? Investors no longer need to be tied solely to the industry standard consensus estimate and can be confident using our data to help make better investing decisions.
- What is WhisperNumber.com?
WhisperNumber.com is an independent financial research firm that collects earnings expectations from the investment public. The "whisper number" found on WhisperNumber.com is unique and proprietary as it is the collective expectation of investors for quarterly earnings. Registered users of the web site can review and analyze historical and real-time snapshots of a company's earnings outlook on the stocks they follow.
- How is a Whisper Number defined by the web site?
The Whisper Number database is defined as the expectations of the mass demographic of individual investors, floor traders, investment advisors, and market strategists for quarterly earnings. It is their analysis (or expectations) based on shared information, fundamental research, past earnings performance, 'gut feel', media, press release, and corporate information.
- How can I use the Whisper Number to make better trades or earnings based trades?
Please visit the 'Educate' tab to learn more about using our data to your advantage.
- What makes your registered userbase of individual investors so unique?
Members and users of WhisperNumber.com are considered Influential Individual Investors. How do we know? We opened our member's database to Roper ASW (now known as NOP Research), one of America's leading market research institutions, for analysis. Shortly there after, Ed Keller, Chairman and CEO of Roper ASW, released a best selling business book he wrote called 'The Influentials'. In the book, Mr. Keller (also founder of the famous Roper Poll) pens an entire section discussing why and how WhisperNumber.com has developed one of the most unique databases of individual investors who are the one investor in ten that tells the other nine how to trade, what to buy, what to sell, what to hold, and where to find the best information resources.
What type of information does WhisperNumber provide?
WhisperNumber offers in-depth analysis of investor sentiment and expectations of a company's earnings. It tracks their performance in comparison to the consensus number. It provides a significant and proven target of expectations for expected growth or a decline in a company's earnings analysis.
How does WhisperNumber.com calculate accuracy of its data?
Directional accuracy measures the price movement of the stock in relation to beating, missing or meeting the Whisper Number. WhisperNumber considers its data both valid and significant based on a five-year comparative study of its information measuring the directional accuracy in comparison to the industry standard consensus numbers. The study provided independent academic validation that the whisper number data provides greater returns when used as an investment vehicle, and has a greater impact on stock movement than analysts consensus estimates.
How does WhisperNumber ensure the integrity and accuracy of the Whisper Numbers?
Based on a series of checks and balances, our quality assurance processes have evolved into an automated and detailed system. We have over 15 'red flag alerts' in place allowing for review of whisper entry and data collection. Examples include similar/multiple email address, similar/multiple IP address, significant activity on one stock, significant activity from one user, and significant activity in a specified time period. We also utilize a proprietary algorithm allowing for review of numbers in accordance with market conditions. We have zero tolerance for ignorance or abuse of our user policy. (A users activity privileges are immediately revoked and notified upon discovery of inappropriate data entry and all information is deleted.)
- What about competition?
Our business is based on earnings expectations, and a general comparison can be made to companies that compile analyst's estimates (Thomson First Call, Zacks, Reuters). The primary differences between the expectation provided by WhisperNumber.com, and the analyst's consensus estimates are as follows:
- WhisperNumber data is compiled from individual investors, floor traders, investment advisors, and market strategists - a unique, unbiased, and proprietary number providing real time earnings expectation. Consensus estimates are compiled from analysts with an inherent (well-known) bias providing the media with filler.
- WhisperNumber has the only independent university studies proving a true correlation between exceeding/missing its whisper number and stock price movement - this is a proven greater impact on stock movement than analyst's consensus estimates. No other data, including the industry standard analyst's estimate, has been proven to provide greater returns when used as an investment vehicle.
- Companies that exceed both the whisper number and the analysts estimate see (on average) a 2.5 times greater positive post earnings price move than companies that only exceed the analysts estimate but miss the whisper.
- It is well known that expectations move markets, not estimates.
In terms of competition from other 'whisper' sites: No other company providing so-called whisper number's has ever been proven legitimate nor have they been transparent in methodology showing a credible database of information. Some sites go as far as to claim they publish a 'better' estimate from analysts, and yet no financial firm nor analyst has ever come forward claiming to work with these companies - in fact, the firms we've contacted (Goldman, JP Morgan, etc) have all denied ever working with them. No media source (or any legitimate independent source) has ever proven any other whisper number credible or legitimate aside from the whisper number published by WhisperNumber.com.
Since our start in 1998, we have collected earnings expectations (whisper numbers) from traders and investors that register with our site. Whether you call it 'wisdom of crowds', 'social media analytics', or 'crowd sourcing', this methodology has proven itself over the past twenty years as a more useful and valued earnings indicator. And traders know estimates don't move markets, expectations move markets.
The firm was founded in 1998 by John Scherr, with the belief that the aggregated data collected from individual investors & traders would prove more timely, accurate, and useful than the analysts consensus estimates. The WhisperNumber expectation is regularly referenced in notable financial media sources such as CNBC, Fox Business, Forbes, Barron's, The Wall Street Journal, CNN Money, The Street, and Bloomberg, amongst others.
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