Alternative Data Newsletter #84 – August 30th, 2018

1. When can buyside firms meet the best emerging vendors in each region?

Eagle Alpha’s new event format is titled “Alternative Data – Alpha and Access”. These events are complimentary for buyside individuals to attend. Our upcoming global event calendar is as follows:

• Hong Kong: September 11th at EY’s offices. Final call for complimentary tickets
• London: October 12th at Simmons & Simmons offices.
• New York: November 29th at Lowenstein Sandler’s offices.

To register for these events, please contact events@eaglealpha.com.

2. What type of advice does Eagle Alpha’s Data Sourcing team provide?

• What are the best alternative datasets for the automotive industry?
• Which are the best sentiment data vendors for the APAC region?
• What are the best alternative datasets for the automotive industry?

3. What are the upcoming dataset roadshows?

Consumer Transaction Data Provider in London from the 24th – 28th September  – Covers both US and UK (new release)

In the UK, don’t miss alpha embedded in purchase patterns, tap into research for unparalleled visibility into £15 Million+ per month in item and SKU-level consumer transaction data. Forecast revenues, track key metrics, and supplement your data with over 500,000 e-receipts per month from private and public companies across a growing UK panel of 110,000+ consumer shoppers. In London from the 24th – 28th September.

Contact mark.vaughan@eaglealpha.com for more details.

4. Example of new data vendor profile added to Eagle Alpha’s database.

This vendor provides actionable business intelligence in the active lifestyle industry. The company collects and analyzes point-of-sale data from more than 15,000 retail doors across 12 distribution channels.

5. What are examples of the bespoke type of projects that buyside firms ask Eagle Alpha to do?

Example: Eagle Alpha can design and implement a web crawling strategy to capture and analyze product or service reviews.

6. Example of insights from Eagle Alpha’s Data Analytics Team.

Eagle Alpha correctly predicted Hertz results using our RevCast dataset, company level revenue indicators designed to predict quarterly revenues for major US consumer companies.

During 2017 Hertz struggled with revenue growth and earnings and management had discussed a turnaround strategy to help fundamentals in 2018. The company reported stronger sales but weaker earnings in the first quarter of 2018. A return to positive fundamentals would, in part, require the company to post continued revenue growth over the course of 2018.

On July 6th 2018, Eagle Alpha’s RevCast model was pointing to strong revenue growth for the company’s fiscal second quarter. Our RevCast model was forecasting revenue of USD 2,447.68 million. The consensus estimate on that day was set at USD 2,303.76 million.

On August 6th 2018, Hertz reported revenues of USD 2.4 billion, a 7% increase YoY. Net loss improved by 60% (USD 63 million in Q2 2018 vs USD 158 million in Q2 2017) and the adjusted corporate EBITDA improved by USD 58 million (USD 93 million in Q2 2018 vs USD 35 million in Q2 2017). Revenue upside in the quarter was correctly predicted by the RevCast model.

Kathryn Marinello, CEO and President of Hertz commented: “In the U.S., our turnaround initiatives are bearing fruit as a result of effective strategies, experienced leaders, and critical investments in fleet, marketing, and our retail operations. At the same time, we’re developing and testing new technology platforms with the future in mind. The successful launch of those systems in the second half of 2019 will further support our strategy to sustainably grow revenue, improve productivity and drive innovation over the long term.”

7. What are examples of recent reports that provide actionable insights and demonstrate the art of what is possible?

• Cracker Barrel: Strong Inflection In Search Interest.
• HPQ: Online Data Signals A Mixed Quarter.
• Foot Locker: Consumer Demand Stalling Again.

8. What topics have buyside firms requested us to host meetings on? 

Datasets for short sellers; tentatively scheduled for Sept 17th.

Upcoming:

• Staffing considerations.
• Data privacy update.
• Data quality for specific data categories.

9. What topics have buyside firms requested us to organize working groups on?

• Educating Data Vendors: First edition of “Sell Your Data To Asset Managers” was published in May. The second edition is scheduled for September. Please contact us if you would like to contribute.
• Standardizing Trial Agreements: Sept. 6th webinar presenting the final agreement to data vendors.
• Standardizing Metadata: Second draft prepared, feedback to be incorporated in the following version.
• Sharing Groundtruth Data: Working group in development.
• Due Diligence Questionnaires: Guidelines for best practices.

If your firm would like to join a working group please contact us.

10. Update for data vendors

• September 6th, 09.00 -11.00am EDT: Webinar to present a standardized trial agreement recently developed by a working group of 12 buyside firms and 4 data vendors. The working group will detail each component of the trial agreement. All vendors and buyside firms are invited.
• Roadshows: Leverage our unrivalled distribution platform by scheduling an IDO (Initial Data Offering) roadshow in the US, EMEA and/or APAC. Contact us to learn more.
• Events: Showcase your dataset at our upcoming events in Hong Kong, London and New York. Unlike other events we do not have any up-front charges – our model is success based only so our interests are aligned.
• Guide: Be sure to read our 70 page guide about how to sell to the buyside. It is free to download from selldata.eaglealpha.com.

11. Featured articles

The Growing Impact of Artificial Intelligence on Financial Institutions.

Big data is now economics and not just technology.

Weathering the Next ‘Great’ Storm in the Market.