How to Separate Facts from Interpretation When Checking Stock News
Connect stock news claims about contracts, earnings, and outlooks to official filings and IR materials. Distinguish repeated press-release coverage from independent verification and resolve timing differences.
When cross-checking news, separate article statements into facts, quotations, forecasts, and the reporter’s interpretation, then find the corresponding official material. Independent evidence matters more than the number of articles. If a filing and news report differ, first check announcement timing and coverage.
Break claims into the smallest verifiable statements
An article saying “large contract raises growth expectations” combines the fact of a signed contract with an interpretation about growth. Verify the counterparty, amount, and period in filings or company announcements, and separately assess revenue recognition and costs to evaluate growth effects. Connect management remarks to official event materials, while distinguishing the fact that a statement was made from the claim that it will come true. Building verification items from a headline alone may omit conditions, so read the article’s sources and quotation scope. When several figures appear, label each one’s units and reference period separately.
Several articles may rely on the same evidence
If multiple outlets cite the same press release, there may be several publishers but only one original source for the facts. Tracing each article’s original source and publication time reveals whether independent reporting was added. Filings, company IR, and exchange notices may also be different announcement routes for the same event rather than different facts. Organize this material into event groups with duplicates removed. Do not automatically dismiss conflicting articles as errors; first check whether they describe different periods or business divisions.
Check the scope of official material too
Official filings have identifiable submitters and formats, but do not guarantee future outcomes. Do not invent contract profitability or undisclosed customer information beyond what the company has published. If news reports subsequent facts, check whether current official material reflects them and leave anything still unverified in that state. Follow amendments and subsequent filings to update conclusions in your analysis notes. A large price move while the evidence remains unresolved does not prove the article’s claims.
Worked example
Hypothetical example: Suppose a news headline gives a contract amount of 600 in units of KRW 100 million, and the original filing specifies a three-year performance period. Adding that 600 to current-year revenue confuses periods. Dividing by three to obtain 200 in the same units also does not establish actual annual revenue unless even recognition is confirmed. In your research record, retain only the total contract amount and period as established facts, leaving revenue allocation and profitability for further review.
What to check
- Have you separated facts and expectations into different statements?
- Have you checked the original source of each article?
- Have you avoided converting the total contract amount into annual revenue?
- Have you checked timing differences, amendments, and follow-up announcements?
Sources and primary materials
This is educational material about research methods. For an actual company decision, verify the filings and primary sources for the relevant period.