Independent research consensus earnings estimates and methods of determining such

• US 20040138998A1
• Filed: 11/14/2003
• Published: 07/15/2004
• Est. Priority Date: 11/14/2002
• Status: Active Grant

• Current Assignee: Goldman Sachs & Co. LLC (Goldman Sachs Group Incorporated)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Lawrence, David
• Granted Patent: US 7,702,574 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Apparatus and methods are described for correlating business relationships and issuing earnings estimates. According to the present invention, an earnings estimate can be generated for a company as it compares to a consensus estimate, or other rating aggregate, along with an indication of an investment banking relationship or other business relationship that the entity providing the estimate has had with the company. In addition to a consensus estimate that may be based upon current and previous analyst earnings estimates, operating actuals, expected reporting dates, footnotes and company-issued guidelines, indications of investment banking relationships and a consensus estimate is provided that excludes input from banks conducting business with the company. The present invention can also include suggested actions that can be taken based upon data relating to an investment banking relationship, an earnings estimate and/or a consensus earnings estimate that excludes input from banks with substantial business relationships with the company.

Claims

1. A computerized apparatus for managing risk associated with earnings estimates for a company, the apparatus comprising:

a computer server comprising a processor and a digital storage and accessible with a system access device via a communications network; and

executable software stored on the computer server and executable on demand, the executable software operative with the processor to cause the computer server to;

receive into the digital storage data descriptive of multiple earnings estimates, each earnings estimate generated by a respective bank;

receive into the digital storage data indicative of one or more business relationships comprising a bank and the company;

generate a first consensus estimate excluding earnings estimates received from the bank with the data indicative of one or more business relationships with the company; and

generate a suggested action based upon the first consensus estimate and the second consensus estimate.

2. The computerized apparatus of claim 1 wherein the executable software is additionally operative with the processor to cause the computer server to:

generate a second consensus estimate based upon the earnings estimates received, including the earnings estimates received from the bank with the data indicative of one or more business relationships with the company; and

generate the suggested action based upon the first consensus estimate and the second consensus estimate.

3. The computerized apparatus of claim 1 wherein the executable software is additionally operative with the processor to cause the computer server to:

generate a marker to correlate with the existence of data indicative of one or more business relationships comprising the bank and the company.

4. The computerized apparatus of claim 1 wherein the executable software is additionally operative with the processor to cause the computer server to:

receive a request data relating to a business relationship between bank and the company.

5. The computerized apparatus of claim 1 wherein the suggested action comprises acquiring a security instrument for the company.

6. The computerized apparatus of claim 1 wherein the suggested action comprises acquiring a derivative which will be profitable if a price of a stock for the company declines within a predetermined period.

7. The computerized apparatus of claim 1 wherein the suggested action comprises acquiring a derivative which will be profitable if a price of a stock for the company increases within a predetermined period.

8. The computerized apparatus of claim 6 or 7 wherein the predetermined period comprises 30 days following an announcement of company earnings.

9. The computerized apparatus of claim 1 wherein the executable software is additionally operative with the processor to cause the computer server to:

receive updated information relating to the one or more business relationships and generate a modified suggested action based upon the updated information.

10. The computerized apparatus of claim 1 wherein the executable software is additionally operative with the processor to cause the computer server to transmit data comprising a message that the bank'"'"'s earnings estimate is excluded from the consensus estimate.

11. The computerized apparatus of claim 1 wherein the executable software is additionally operative with the processor to cause the computer server to transmit data comprising a reason for the exclusion of the earnings estimate from the consensus estimate.

19. The method of claim 1 additionally comprising generating digital data comprising a message that the earnings estimate generated by the bank will be excluded from the calculation of the second consensus estimate and a reason for the exclusion.

12. A method for managing risk associated with earnings estimates for a company, the method comprising:

receiving digital data descriptive of multiple earnings estimates into a computer storage;

receiving digital data descriptive of one or more indications of a bank conducting business with the company into a computer storage;

generating a first consensus estimate based upon the digital data descriptive of the multiple earnings estimates received and comprising the data descriptive of an earnings estimate generated by the bank conducting business with the company;

generating a second consensus estimate based upon the digital data descriptive of the multiple earnings estimates received and excluding the data descriptive of earnings estimates generated by the bank conducting business with the company; and

generating an indication in human readable form of a suggested action based upon the first consensus estimate and the second consensus estimate.

13. The method of claim 12 additionally comprising the step of:

generating digital data indicative of a business relationship between a bank and the company.

14. The method of claim 13 additionally comprising the step of receiving a request for data descriptive of the business conducted comprising the bank and the company.

15. The method of claim 12 wherein the suggested action comprises acquiring a security for the company.

16. The method of claim 12 wherein the suggested action comprises acquiring a derivative which will be profitable if a price of a stock for the company declines within a predetermined period.

17. The method of claim 12 wherein the suggested action comprises acquiring a derivative which will be profitable if a price of a stock for the company increases within a predetermined period.

18. The method of claim 16 or 17 wherein the predetermined period comprises 30 days following an announcement of company earnings.

20. Computer executable program code residing on a computer-readable medium, the program code comprising instructions for causing the computer to:

receive multiple earnings estimates related to a company;

receive one or more indications of a bank conducting business with the company;

generate a first consensus estimate based upon the earnings estimates received;

generate a second consensus estimate based upon the earnings estimates received, but excluding an earnings estimate received from the bank conducting business with the company; and

generate a suggested action based upon the first consensus estimate and the second consensus estimate.

21. A method of interacting with a network access device so as to manage risk relating to earnings estimates, the method comprising the steps of:

transmitting digital data from the network access device comprising an indication of a company;

transmitting digital data from the network access device comprising a request for a earnings estimate consensus; and

receiving an indication of an earnings estimate consensus for the company, wherein the earnings estimate consensus received excludes estimates from a bank with a business relationship with the company; and

receiving a suggested action based upon the earnings estimate consensus received.

22. The method of interacting with a network device of claim 21 additionally comprising the step of receiving an indication of an earnings estimate consensus for the company, wherein the earnings estimate consensus received includes estimates from a bank with a business relationship with the company and the suggested action is additionally based upon the earnings estimate consensus for the company which includes an estimate from a bank with a business relationship with the company.