Customer-Supplier Momentum ::
February 16, 2011
Revere Data’s CEO Kevin O’Brien discusses the strong correlation between stock performances of customers and their suppliers with Maria Bartiromo on CNBC’s “Talking Numbers”. If the customers are performing well, their suppliers will also follow with approximately a one month time lag, and vice versa. Thus, this supply-chain effect serves as a good predictor for supplier stocks performance.
Companies do not operate in isolation, and by knowing their positions along the supply-chain, investors can more reliably predict their stock performances. As the global economy becomes more integrated, this supply-chain knowledge will be essential for managing risk exposure and improving portfolio returns.
By using Revere Relationships™ clients are able to "connect-the-dots" among companies and sectors to discover linked networks of companies. The data includes both direct and reverse relationships. Direct relationships are those named by a company; reverse relationships are those named by other companies about a company. This dual perspective allows for a more thorough understanding of a company’s peers and its supply chain.
Watch the video at CNBC.com or click the image below.
