Ilan Azbel, CEO and Founder of Autochartist, has over 20 years experience in technology, 15 years in the financial markets and an academic background in mathematics, computer-science and engineering.
Hi Ilan, thank you for joining us today. With Amazon, Tesla and Apple blowing-up the media daily, everybody would love the opportunity to purchase Stocks and I guess Stock CFDs give traders a chance to do that without actually buying the underlying asset.
Without a doubt! We are seeing massive amounts of new accounts at both our otc and exchange-traded brokers, all wanting to get a piece of the action.
Q: Is this why we are seeing more brokers offering stock CFDs?
A: Yes that’s one reason, but another reason brokers are embracing this momentum is because of the higher margins in these instruments. Especially now with so much volatility occurring in the markets. We are simply responding to this ever growing trend and providing brokers with the reporting that their clients are looking for.
Q: What are Autochartist offerings for stocks and stock CFDs?
A: We believe it is crucial for any trader to have all the information that they need, in an easily accessible manner, before even thinking about investing or diversifying their investment portfolio. So if a broker can provide them with all the tools they require, integrated within their platform, the trader has no reason to leave the brokers ecosystem and search for an alternative service provider.
Over and above our usual offering of technical and statistical analysis, we are providing some stock-specific analysis such as news and media sentiment about stocks, as well as analysis of financial statements, including cash flows, balance sheets and income statements.
The sentiment report analyses some of the major news portals in order to provide a trader with a broad-view of general public opinion being neutral, positive or negative towards a particular stock.
Stock CFDs do lend themselves well to technical and statistical analysis, however looking at a stocks fundamentals is essential in providing traders with the bigger picture. Therefore we also provide company news updates, quarterly company reports revalued after earnings are released, company valuation reports, annual financial highlights and the latest SEC filing news. This information really helps traders get to the nitty-gritty of the company’s balance sheet, income statement and cash flow statement which they are interested in researching.
Q: When it comes to the research you are providing, how does currency and stock trading differ?
A: Unlike currencies, a stock does have an intrinsic value based on it’s profits or losses as well as on the size of its balance sheet. This is the ‘fair value’ as opposed to a currency’s ‘market value’ which is determined by the number of traders holding long or short positions in the market. Moreover, sentiment about a stock can be derived by what the media is saying about the product or service and the share price itself. This is why we try to provide a 360 degree approach to the information our brokers can offer their traders to help them account for before making any trading decision.
Q: What are the different valuation methodologies used by Autochartist to provide a holistic view of ‘fair value’?
A: I’m glad you asked that.
The valuation methodologies used are Price-Earnings Multiple, Discounted CashFlow Model, Benjamin Graham Approach and EBIT-Based Model. Although these are well-known and widely accepted approaches to valuing companies, Autochartist has added its own flair by performing multiple complex back-fitting regression models to ensure that the coefficients used in each of these models has been optimized for each stock, and thus more likely to result in more reasonable ‘fair-value’ forecasts.
Q: What are the real benefits for a broker using your valuation reports in their stock offering?
A: I would think the biggest advantage is the accessibility of all information in one place as well as the massive cost savings when compared to human content production and translation. Despite the need brokers have to provide their clients with stock valuation reports, it’s expensive for brokers to translate and localize these reports. This is especially true for brokers that offer US stock trading across multiple countries
Reports are white-labeled to fit the brokers branding with no necessary attribution, so it looks like the brokers analysts themselves have performed the analysis and produced the reports.
Our reports are a multi-functional fit for your marketing. From your sales team having interesting topics to discuss with clients to adapting the reports to the marketing channel you require, such as email, social media or notification. They are available in PDF, email, HTML for easy integration.
Founded in 2004, Autochartist is a leading financial content and analytics provider. Partnering with global Stock, Forex, Futures and CFD brokerage firms to serve them with thousands of unique content piece’s per daily, in more than 30 languages. The company focuses on research and development in order to consistently deliver innovative products which ensures not only their clients success but also assists them in delivering the most unique and current content possible.
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