VANCOUVER, British Columbia, Sept. 8, 2014 (GLOBE NEWSWIRE) -- Social Media has changed the business of investment advice. Opinions are no longer filtered by editorial boards of senior journalists. Everyone gets their say, and with content-aggregation sites like Seeking Alpha – a junior commentator is only three clicks away from being a published author.
A new academic study by the University of Hong Kong, confirms that the "wisdom of crowds" has expanded from restaurant and hotel reviews, to stock picking.
A new bridge between social media and the mainstream press is being built by Financial Press Owner, Mark Chadwick, who keeps a deep roster of professional freelance writers to create original articles which are then distributed through the Nasdaq Globenewswire network to over 1 million financial subscribers and 50 newswires.
"We are a Technology Company that specialises in Investment news," stated Chadwick in an exclusive interview with Technology Dispatch, "We have constructed a town square, and we are inviting all the Town Criers, all over the world, to come and join us, adding their voices to the conversation."
Financial Press's new website www.financialpress.com allows amateur and professional writers to upload articles on a variety of topics from Finance to Fashion and Food. There is a free sign up done under a username. The website's software allows a client company to contact to a specific writer for coverage. Financial Press receives a 10% commission for introducing the parties and moderating negotiations.
"When the article is completed, the client company is directed to our distribution page," explains Chadwick, "Where they can choose a variety of distribution channels such as Nasdaq, Globeinvestor and various other options which will grow over time offering specific distribution for niche articles."
Chadwick claims that the collective brainpower of the Financial Press Community is the company's core asset.
Financial Press intends to pay the writer a 5% commission from every transaction that comes from a referral. Meaning, once an article is finished, if the client Company chooses to distribute over the Nasdaq Globenewswire for $5000 the writer will get 5% of the fee along with his fee for writing the article.
Crowds can outwit professionals. Research experiments have determined that Wikipedia is as accurate at the Encyclopedia Britannica.
Seeking Alpha receives content from 8,500 independent contributors. Base payment is $35 plus $10 per 1,000 page-views. Its articles are published as Premium articles, Standard articles or Instablogs. Contributors gain – or fail to gain – their own audience.
Keith Schaefer, a veteran journalist, venture capitalist and Editor of The Oil and Gas Bulletin has 60,000 followers. An anonymous "independent investor" who publishes the Oil and Gas Focus – has 25 followers.
"Seeking Alpha's vision is to be a crowd-sourced platform for serious investors," stated SA Editor-in-Chief Eli Hoffmann in a post-divorce statement, "While Yahoo leans more toward populist, personal finance and general-interest content."
The Hong Kong University Institute report found that opinions of crowds were a powerful predictive tool.
A virtual investment strategy that went long on stocks most liked by the blogosphere, and short on the most disliked stocks - created a multi-year return of 40%.
Remarkably the crowd-sourced portfolio kept generating profits through the market crash of 2008.
"There are many financial writers who are currently hobbyists – but deserve to be making a living," stated Chadwick, "We want to help them do that. We will incentivize the writing community to bring us new clients and also to find new distribution partners. In the latter case, each time the client company uses that distributor the writer will receive a cheque."
CONTACT: Financial Press Inc. 700-510 West Hastings Street Vancouver, B.C. V6B 1L8 firstname.lastname@example.org Ph: 778-288-8492Source:Technology Dispatch