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Cedric At Work: Analysing Financial Results with AI

This article outlines a video demonstration showcasing the capabilities of Mick’s Research Assistant, an AI agent named Cedric, in analysing financial reports.

Introduction

• The video focuses on demonstrating the significant improvement in productivity achievable through AI-powered analysis, particularly in the context of DIY investing.
• Mick Pavey highlights the power of combining AI analysis with customised research for enhanced insights.

Setting the Scene

• The demonstration features Cedric analysing the full-year results of a company called On the Beach Group [LSE: OTB], which was on the Mick’s ‘watch list’.
• Mick observed that OTB’s price had been declining in recent months, and the final results (FY 2024) were released on December 3rd 2024. The price prior to the release of the results was 171.5p.

The Challenge: 52 Pages of Financial Data

• The full-year results report for OTB comprised 52 pages, a challenge for any analyst to digest quickly.
• Mick emphasises the challenge of thoroughly analysing lengthy reports where crucial information might be buried within the document.

Cedric’s AI Capabilities: Speed and Multi-Source Analysis

• Cedric is able to digest and analyse the 52-page report efficiently.
• In addition to the report, Cedric also considers other loaded information, such as financial trends and technical analysis data from charts, for a comprehensive assessment.
• Mick points out that Cedric had been briefed, using; a 3-year chart and a 12-month chart, showing a breakout of a downtrend prior to the release of the results.
• Key Metrics for OTB had also been uploaded to Cedric, as part of the information provided

Instructions and Task Execution

• The speaker instructs Cedric to provide a detailed analysis of the OTB full-year results, including:
• Comparison with forecasts on key metrics.
• Assessment from a technical analysis (TA) perspective.
• The speaker initiates the analysis process by sending a message to Cedric.

Cedric’s Analysis Process

• Cedric’s progress is visualised through a pulsing star animation and “ruminating/working” messages.
• The sources used by Cedric during the analysis are displayed at the top of the screen.
• The time taken for Cedric to complete the analysis is noted as being very quick, being about two minutes… as noted by the PC system clock!

Initial Results and Further Interrogation

• Cedric completes the analysis, including a risk warning.
• The speaker identifies a minor error in the time format (GMT time error compared to the PC system clock).
• Mick then adds a second prompt, to request further analysis.
• This produces a comparison of actual figures against the forecast in a tabular format, with percentage changes shown.

Enhanced Output and Insights

• Cedric delivers the requested enhanced output, including a table comparing actual and forecasted figures with percentage changes.
• Cedric’s analysis includes comments on the technical analysis and the company’s strategic progress.
• In addition, Cedric highlights positive aspects, such as strong execution of strategic initiatives and cost discipline evidenced by marketing spend efficiency.
• Mick confirms the accuracy of the content generated by Cedric.

Conclusion

• The video concludes by showcasing the AI Agent (Cedric)’s ability to effectively analyse financial reports and provide valuable insights.
• Mick emphasises the benefits of using AI for DIY investing, highlighting the time savings and potential for better-informed decision-making.
• The video aims to demonstrate the potential of AI tools like Cedric for investors and financial analysts.

Mick Pavey (20th December 2024)