“I’m a Surveillance guy from many years past and I understand there are limits to “market intelligence.” What prompted us to add Market Structure Analytics in the Pfizer IR department is the focus on behaviors in addition to “who’s buying and selling?” We want to track market activity the way institutions actually behave today. Buy-and-hold money buys and holds, and traders trade and asset-allocators continually shift and rebalance, and everybody hedges. Market Structure Analytics reflect these realities and help us consistently monitor the effects of all these factors in our market on a timely and affordable basis.”
The analysis that we receive from Modern IR provides a unique perspective on the trading of our shares. We’ve experienced a lot of activity over the past couple of years and I find the analysis very useful and quite accurate as to the forward trends. They also offer consistent high levels of service which makes it easy to ask questions and get the answers you need in real time.
“I’ve used ModernIR’s market-structure analytics at EMC, McAfee/Intel and now Seagate. Knowing what forces are behind my price and volume and what that tells me about our messaging, the overall health of our equity, and what I should expect next, is indispensable. I think it’s essential that IR professionals develop a core understanding of market structure today. It’s just reality.”
While at my previous company, KYTHERA Biopharmaceuticals, we brought in the ModernIR team to help provide their unique insights on our trading. They were able to consistently parse through a huge amount of trading data to give us high-quality answers regarding the shifting demographics of our equity marketplace, even through the process of our acquisition by Allergan. Possessing that sort of information, we knew in almost real-time exactly how investors and arbitragers were responding. To me, that kind of information is invaluable… so much so that I brought ModernIR with me to my new company. Moreover, beyond their data analytics, ModernIR consistently provides a high-touch, customer friendly service that is invaluable in not only providing quantitative data, but also qualitative insights that help us connect the dots on what’s really going on. Their grasp of market structure and their ability to translate these insights into actionable recommendations make them a trusted and valuable resource.
Modern IR provides an excellent quantitative view of the different types of trading in our stock; it’s helpful to see where the money is coming from and what type of investors are driving our stock movements. The gauge on rational price is critical to understand how thoughtful investors are viewing the value of our company, and what steps we as IR professionals need to take in order to increase or improve the perception with certain investors.
We found ModernIR insight into trading and market structure to be very valuable in our stock surveillance efforts. Our stock tends to be very volatile and ModernIR brought a much better view into quant-driven trading in addition to more traditional active investor tracking. The team is responsive to ad hoc requests and we leverage their analysis in quarterly management updates. Well worth the subscription!
Recently, I gave a presentation to our leadership team (about two hundred managers). The general theme was “Equity Markets.” I discussed the dramatic changes that markets have undergone the past 15-20 years, the behaviors behind our price and volume, and the reasons that IR remains an important function given the unprecedented levels of competition for mind share in today’s markets. The presentation was very well received. Several attendees commented to me about how much they learned, particularly about the gap that existed between their perception of the markets and reality. This success wouldn’t have been possible without our partnership with ModernIR overall and your assistance in preparation for the presentation specifically. Thank you very much!
Markets have changed dramatically over the past decade or so. At Tenneco, we believe that investor relations needs to evolve to keep pace. But how is that possible when equity trading is dominated by derivatives activity and high frequency trading? Our answer is ModernIR. Using Market Structure Analytics, the team at ModernIR is able to analyze our trading activity and provide a timely assessment of the behaviors behind our price action. We know in short order whether a price movement was in fact driven by active investors, or whether our shares were pulled along by indexer activity or were caught up in a trading scheme. That, in turn, gives us insight into one of the most elusive IR metrics … investors’ view on fair value.
“I first considered Market Structure Analytics because I felt that I was sharing incomplete and only surface level analytics with the Board and senior management regarding the trading behavior of our stock. Market Structure Analytics has been instrumental in helping evolve internal perceptions of how the market works and how we should think about the ‘market price of the stock’ and the ‘rational price’. We now incorporate behavioral views of market activity into our quarterly Board reports, providing a better context for fair value. We also consistently monitor active and passive investment behaviors and how speculative trading and perceptions of risk can have significant impact on stock-value. The result is a better informed Board and management team on our stock’s health and drivers. The entire team at ModernIR is knowledgeable, well-connected and always responsive. Having them as a back-stop gives me increased confidence in understanding the capital markets and our stock’s trading behavior.”
“ModernIR is a tremendous help to us in sorting through the noise in the market to understand what’s really happening. During the four years we’ve worked with ModernIR, we’ve encountered several challenges as an IR team, including management turnover, sale of subsidiaries, and repositioning the investment thesis. With each challenge, ModernIR helped us understand the market’s response in proper context — not just how thoughtful investment dollars react, but how speculators and high-frequency traders are influencing our valuation. We know how to adjust our focus based on what behaviors are dominating our trading activity.”
“ModernIR’s analytics show when Active Investors step up to buy at a statistically significant level to set a new Rational Price. We find it valuable to watch how that drives share behavior afterwards. We have regular discussions with members of the Client Services team at ModernIR who help us draw conclusions from the data and tie it back to our investors. We highly recommend ModernIR’s services, especially for IROs who don’t have technical market experience or a trading background.”
“I use Market Structure Analytics to track changes in how institutional investors manage risk or leverage positions with swaps and other forms of hedges, and to help me understand when passive investors – indexes and ETFs – are rotating into or out of Hess stock. These are parts of the demographic mix setting our stock price and by distinguishing them from fundamental investors, I have a better sense of fair value and can set realistic internal expectations of where our stock should be trading.”
“Modern IR has taken me on a journey of discovery into the complexities of trading today. The thoughtful analysis Tim Quast provides has opened my eyes to a world of knowledge that is increasingly important to possess as an IR practitioner. I now have a much better understanding of what’s substantive and what’s noise when it comes to my company’s trading activity. This allows me to offer more insight to my management team and to communicate more effectively with Wall Street.”
“ModernIR has helped distill large volumes of trading data into concise commentary on stock price performance for my Board and Management team, and actionable marketing ideas for me.”
“Our IR and Management teams find that market structure analytics settles our nerves when shares are volatile and there’s no “logical” explanation. It also helps us connect the dots after investor outreach or conference participation because we can see whether our target audience is reacting to our story and if they are buying or selling. We didn’t know what we didn’t know about market rules and behavior before using market structure analytics, but now it has become very valuable to us. If we were in the unfortunate situation of having to cut budgets, of all the tools we use in our IR program, this would be one of the last we’d cut because we find it the most helpful. You may not know that you need it until you try it, but you will find ModernIR and the information they provide very valuable.”
“I believe a well-informed IRO should understand the valuable information embedded in stock trading activity. Understanding the underlying demographics that drive stock price movements has been a huge “a-ha moment” for our IR and management teams. Realizing that Active Investment is a rather small component of overall pricing is valuable insight. We receive weekly reports to consistently measure market behaviors and see how they change over time. ModernIR also helped us in the planning process as we are better able to determine next steps and what upcoming investor actions might be. With ModernIR, we are no longer operating in the dark. “
“With Market Structure Analytics, we now have a much deeper understanding of what is moving our shares and how investor uncertainty can impact trading. ModernIR has a great way to measure investor engagement. Both our IR team and management find that the Engagement indicator gives us a very good feel for where active investors are stepping in to buy and whether they understand our story. I highly recommend ModernIR as they offer insight that no one else can, they operate with honesty and integrity, and their services can be personalized to one’s unique situation.”
“ModernIR analyzes equity market activity from a demographic perspective, which makes their service unique compared to traditional Surveillance. Initially, we thought that might be a challenge for management who, in our experience, have been accustomed to thinking in terms of “who.” This actually wasn’t a challenge because management quickly saw how compelling it is to track all of the market behaviors that impact our share price rather than just Institutional Investors. Market Structure Analytics gives us accurate answers about share price moves, and an accurate look at where shares are likely headed because their answers are based on statistical analysis. We believe Market Structure Analytics is a necessary tool to help management understand what affects share price given today’s fragmented market and we also believe it is certainly the best value.”
“The team at ModernIR are good teachers. They offer classes to make it even easier to appreciate the wealth of information contained in each Market Structure Report, from investor “fair value,” to sentiment, to behavioral changes, to short volume, and much more. Market Structure Analytics has become a key resource for the IR team here at Ralph Lauren.”
“I get weekly analysis, educational classes, calls with the Client Service team, and assistance in preparation for Board meetings. Our weekly Market Structure Report, which includes a summary of activity in our shares and changes in our key metrics, provides me with a good sense of the health of our share market and whether there are any issues to address. As our new CFO comes on board, I’m excited to share ModernIR’s data with him and demonstrate how IR can be used strategically and effectively. It’s a cost-effective way to look at trading data especially considering how the market has evolved. When you want to know what’s moving your shares, look to ModernIR.”
“ModernIR provides real strategic value. We are a small-cap firm that can be subject to large intra-day price moves. Under a typical surveillance scenario, such price moves drive efforts to discover individual firms that are moving our shares — activity that is notoriously unreliable, and nearly always out of date. This kind of response creates a continuous, reactive cycle of behavior, rather than a strategic one. With Market Structure Analytics, we have a bigger, more real-time view of a market that often reflects trends in algorithmic, index, and ETF flows, or simply daily trading arbitrage. It provides a rationale for the behavior we’re seeing at any given time, and allows us to concentrate on strategic decision-making rather than stock price volatility. We strongly recommend ModernIR; their team is very well positioned to put your trading into context and free you to concentrate on big-picture items.”
“ModernIR provides valuable analytics that readily complement more traditional IR offerings as well as our own efforts. They employ statistical analysis to reach conclusions about trading activity and what that activity tells us about our equity. Specifically, Market Structure Analytics allows the team to differentiate between index fund flows or arbitrage and moves by active investors. The Engagement metric allows the team to inform management just how well our “story” is understood and appreciated by active investors.”
“One of the first and best decisions I made when taking over as IRO was to hire ModernIR for their uniquely valuable trading analysis versus traditional stock surveillance. Their insights go far deeper than other options and proved exceptionally helpful in my understanding of our stock movement and in explaining changes to our C-suite. When my company became the target of a coordinated short-attack, ModernIR was able to track the daily short-trading and compare the trends, impact, and expectations versus other public short-attacks. Being able to educate my C-suite with hard data, historic trends, and insights into when it was ending was a tremendous value.”
There are no upcoming events.
NIRI Chicago Workshop
September 23, 2022
The Rise in Passive and Thematic Investing
Perry Grueber a panelist for this workshop session.
American Gas Association Investor Relations Workshop
September 19, 2022
What’s Really Driving Stock Prices — and What You Can Do
Tim Quast, Presenter
Boston Securities Traders Association
November 18, 2021
Alt Data, Data Analytics and Market Structure in Today’s Stock Market
Tim Quast a panelist at the BSTA Chapter meeting.
NIRI Chicago Workshop
September 24, 2021
ModernIR an event sponsor
ModernIR Webinar
June 24, 2021 - 2:00 pm ET
Why the Great Meme Stock Trade of 2021 Happened – and the Risk to Your Stock
Zach Yeager and Tim Quast describe how market rules and market-maker obligations rather than the madness of crowds explains extreme moves in the so-called Meme Stocks.
NIRI Annual Conference
Jun 22-23, 2021
NIRI Annual Virtual Conference 2021
ModernIR sponsoring. Content to come!
NIRI IR Fundamentals
March 3, 2021
You’ve Been Gamestopped! How Do You Guide Your Executives?
Tim Quast moderated group discussion for NIRI West Coast Fundamentals
NIRI Rocky Mountain Chapter
January 21, 2021
The Nexus of Macroeconomics and Market Microstructure
Tim Quast speaker
NIRI Twin Cities Chapter
January 14, 2021
2021: The Return of the Proxy Fight
Tim Quast moderated panel with Kai Liekefett, Partner, Sidley & Austin, Chicago, Co-Chair – Activism Practice; and Paul Schulman, Managing Director, M&A and Activism Advisory Group, Morrow Sodali, New York.
NIRI Annual Conference
December 10, 2020
NIRI Virtual Annual Conference 2020
ModernIR a Sponsor. Content:
That’s Cool — But What Do I Do With It?
NIRI Chicago Workshop
Sep 24-25, 2020
Liquidity and Volatility in Pandemic Markets: What IROs Should be Telling CEOs
Tim Quast presented to the virtual Chicago annual IR work shop
NIRI
Sep 15-16, 2020
ModernIR major event co-sponsor. Tim Quast moderated a panel: Use of Data on the Buyside Today and What the Futures Holds
NIRI National Webcast
April 15, 2020
Understanding Wild Markets in the Age of the Virus
Tim Quast, speaker
NIRI Virtual Chapter
November 20, 2019
Tim Quast moderated discussion with Mett Kinak, Global Head of electronic trading, T Rowe Price.
NIRI Annual Conference
June 2-5, 2019
The Power of IR: NIRI Annual Conference 2019
Event Sponsor, Tim Quast a 2019 event Vice Chair
JW Marriott Desert Ridge, Phoenix
NIRI Twin Cities
April 10, 2019
Are ETFs Driving Your Stock and the Market?
Tim Quast speaker
NIRI Pittsburgh
March 26, 2019
Are ETFs Driving Your Stock and the Market?
Tim Quast speaker
NIRI Boston Sponsorpalooza
March 19, 2019
NIRI Silicon Valley
March 15, 2019
NIRI Silicon Valley Annual Spring Seminar
Tim Quast Moderator: 24 Hours in Your Stock – Understanding Market Structure
NIRI DFW
November 16, 2018
Are ETFs Driving Your Stock and the Market’s Volatility?
Tim Quast presenting
Market Structure EDGE Wins Benzinga Global FinTech Award
November 12, 2021
EDGE, sister company to ModernIR, the top finisher in the Best Day Trading Software category a year after launching.
IEX – Boxes + Lines Podcast
August 3, 2020
Investor Relations with Tim Quast of ModernIR
Tim guested with hosts Ronan Ryan and John Ramsay
Market Structure EDGE Launches new trading decision-support platform
July 15, 2020
IR Magazine
June 16, 2020
Covid-19 Set to Reshape Stock Indexes
Tim Quast quoted on delayed index rebalances, effects on stocks.
CNBC
June 11, 2020
Worldwide Exchange with Brian Sullivan.
Tim Quast on Robinhood and others selling retail order flow to high-speed traders.
Wall Street Journal
February 28, 2020
Heard on the Street: The Coronavirus Selloff Might be Exaggerated
ModernIR data referenced (subscription required)
IR Magazine
December 17, 2019
The 2010s in Review: Market Structure and the Flash Crash of 2010
Tim Quast guest column on market structure ahead and behind
NIRI – Tim Quast elected to NIRI National Board for Two-Year Term
December 5, 2019
CNBC
October 25, 2019
Worldwide Exchange with Brian Sullivan
Tim Quast on how ETFs and shrinking stock-market volume are related
Marketwatch
October 21, 2019
How an ‘astonishing’ decline in S&P 500 trading volume could pose risks for investors
Tim Quast quoted
Marketwatch
September 17, 2019
“Apple a Value Stock?” The Great Rotation takes a strange spin
Tim Quast quoted
NIRI Announces 2018-19 Leadership Awards
June 1, 2019
BusinessWire
December 13, 2018
ModernIR Introduces Sector Insights for Issuers, Investors
The latest analytics offering from ModernIR tracks trends and behavioral drivers by sector, helping public companies understand performance versus the sector, and helping investors predictively anticipate sector tops and bottoms.
NIRI
December 1, 2018
NIRI Announces Chair and Vice Chairs for 2019 Annual Conference
Tim Quast a vice chair
Reuters
February 12, 2018
Stock Buybacks Could Add Fuel to Wall Street Rebound
Tim Quast quoted
Dow Jones Marketwatch
February 10, 2018
What Technical Analysts Say About Market Volatility
Tim Quast quoted (Editorial Note: We practice behavioral analytics, not technical analysis.)
Dow Jones Marketwatch
February 9, 2018
Trading at Light Speed Fuels Market Drops
Tim Quast quoted
StarTribune
September 23, 2017
Markets shrug off uncertainty, but will ordinary investors stay the course?
Tim Quast was quoted on why markets don’t react to uncertainty
BusinessWire
August 23, 2017
ModernIR’s Key Metrics Report Provides CFOs Insight into Equity Condition
House Financial Services Committee
June 27, 2017
Testimony From ModernIR on Market Rules
Tim Quast’s written testimony on rule-changes for issuers
Markets with significant liquidity pools and less high-frequency trading appeal more to value investors (who wish to buy large quantities at appealing relative prices). But a tight market structure with plenty of program trading might appeal to GARP investors because any increase in demand is likely to be self-fulfilling against the same supply, thus fostering reasonable appreciation.