NEW YORK (MainStreet)One analyst screams buy. Another shouts sell. So where do you place that bet? What if you could hang a giant, gold-chained Truth-O-Meter around their necks?
A free web application called TipRanks claims to do just that: tell you which analyst is right or at least which one has been correct in their stock recommendations most often. TipRanks lets you see the track record and performance of any analyst on the Web, see what top-performing analysts are saying about a stock and get real-time recommendations.
Uri Gruenbaun, the Israel-based CEO and co-founder of TipRanks is a software engineer, most recently a Senior Project manager for security company ARX, where he managed national IT projects. Two years ago current TipRanks CTO Gilad Gat and he developed a real estate service that scanned the Web detecting foreclosed assets. Users would input what type of property they were looking for and receive a text message whenever a relevant asset was found. Gruenbaun says the idea just "wasn't scalable enough for us to invest in."
But with a little tweaking of the concept, TipRanks was born.
"It started by me noticing I was making investment decisions based on opinions I was getting online, from 'financial experts,'" Gruenbaun says. "This advice is published everywhere around the Web, starting with the big financial websites quoting analyst recommendations to financial reporters telling me what are the '5 Stocks That Will Beat the Market.'"
"After relying on a few opinions that turned into bad decisions it occurred to me that there was no mechanism that allowed me to evaluate these recommendations and see how accountable are the people behind them," Gruenbaun continues. "That's how we came up with our 'financial accountability engine' a service that instantly pops-up a report with the measured performance of anyone giving sell-side advice, based on the performance of historical recommendations they've made."