by | August 25, 2011

Form 13Fs – Things that Could Have Been Brought to My Attention Yesterday!

By Dennis Walsh, Senior Consultant & Director of Social Media

It’s that time of the year again.  Four times a year, institutional investors that hold more than $100 million in assets under management are required to file a Form 13F with the SEC that lists the securities held in their portfolio and the number of shares owned…45 days prior.  Every quarter when I’m going through these filings for my clients, I have a similar reaction as Adam Sandler in “The Wedding Singer”:


The 13F filings provide a snapshot into the makeup of a company’s shareholder base at the end of each quarter.  While they offer some insight into how a company’s ownership has been trending, they fail to provide who the shareholders are in real time.  It is extremely frustrating when the markets are under pressure and volatility is high – as it has been in recent weeks – to not know who owns your company’s stock.    During the recent rollercoaster swings in the market at the beginning of August, the publicly available shareholder data was current only as of March 31 (ownership data as of June 30 wasn’t due to the SEC until August 15)!  With all the buying and selling that has taken place, a company’s shareholder base could potentially be wildly different since the end of the previous quarter. Continue reading →

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by | August 11, 2011

What Makes for a Successful Investor Relations Program?

By Dennis Walsh, Senior Consultant & Director of Social Media

In many of the StreetScope® perception audits we conduct, we often inquire about what makes a successful investor relations program.  Is the Street satisfied with the level of outreach?  Is there something specifically a firm can do to enhance its communications?  Being the investor relations enthusiast that I am, I’m always hoping to discover an innovative idea that we have yet to implement. 

However, more often than not, the responses are all pretty simple.  Wall Street wants access to management.  They want informative answers to their questions.  Many even want an investor day that describes the company’s long-term growth strategy.  So old-fashioned (I jest)!  What about having an active Twitter/StockTwits account (follow me) or Facebook page, a cool management video or an interactive annual report? Continue reading →

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by | July 11, 2011

Is It Time to Invest in Your Investor Day?

By Jim Buckley, Executive Vice President & Partner

I recently led a workshop session at the NIRI National conference entitled Time to Invest in Your Company’s Investor Day.  The workshop featured a deep dive on all the fundamental components and strategic aspects of an Investor Day, or Analyst Day as some people still prefer.  The session was very comprehensive and included a panel with three of today’s best and brightest IROs.  (Ok, full disclosure, I handpicked Alexia, Jennifer and Jerry.)

We collectively shared our Investor Day wisdom and experiences, including the Good, the Bad and the Ineffective.  The response to the panel, particularly in some follow-up discussions, was decidedly positive.  Given that a few folks have asked me recently for supplemental materials – which are available to conference attendees here – I thought I would share some of the key takeaways, as well as appending the “Investor Day Do’s and Don’ts” handout that was developed for the session. Continue reading →

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by | April 12, 2011

Investor Relations: How May I Serve You?

“View from the C-Suite: What Management Wants from Investor Relations” was the theme for NIRI Boston’s April event.  For a chance to listen to a panel of C-level executives speak candidly to a room full of investor relations professionals, I quickly reserved a car and “zipped” over to the meeting.  The panel featured three esteemed executives from the region, including Richard F. Pops, Chairman, President & Chief Executive Officer, Alkermes; David D.R. Hargreaves, Chief Operating Officer, Hasbro and Donald Muir, Chief Financial Officer, Lionbridge.

The audience was eager to hear what these top executives expect from a strong IR team.  The panel consistently reinforced that IR professionals are most effective when they are knowledgeable, well organized, involved in strategic planning, and are able to stand up to management to ensure best practice.

Continue reading →

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by | December 13, 2010

Wall Street Wonderland

Opening bell rings, are you list’nin? 
The market soars, most stocks are glist’nin’
A beautiful sight,
We’ll all be richer tonight.
Walking in a Wall Street wonderland.

 

 

 

 

 

 

Gone away is the recession,
Here to stay is our jobs obsession.
But our economy’s strong,
So we go along.
Walking in a Wall Street wonderland.

In the market the government can bail us all out,
Then pretend the Fed can turn things around

Continue reading →

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by | November 30, 2010

Reading Body Language: The Investment Community’s New Secret Weapon

“Lie to Me.” The name of the prime time drama on Fox is a challenge.  “Go ahead.  I dare you to try to pull one over on me.”  The show’s protagonist, played by Tim Roth, is an expert in detecting deception and is hired by corporations, government agencies and private citizens to analyze body language. 

We’ve all heard about how valuable body language is in interpersonal communication, but is Lie to Me more fiction than fact?  Not even close.  The investment community is now using real-life consulting firms like the one in Lie to Me to analyze the truthfulness of corporate executives. 

In his 2010 book Broker, Trader, Lawyer Spy, POLITICO White House Reporter Eamon Javers recounts stories of former CIA agents working with major hedge funds and bulge bracket investment banks.  Boston-based Business Intelligence Advisors (BIA) is one firm mentioned by name in Javers’ book.  BIA, which consults solely for the financial services industry, including institutional investors and venture capitalists, is comprised of former intelligence community agents.  Continue reading →

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by | November 22, 2010

Activists and Boards Share Common Ground on Communications

When it comes to corporate governance, board members and shareholder activists are usually on opposite ends of the spectrum.  But at separate conferences in New York and Boston this month, the two camps expressed a surprisingly similar view about the most effective way to deal with the anticipated increase in shareholder activism in 2011: better communication.

According to a study by law firm Schulte Roth & Zabel (SRZ), 76% of activists surveyed identified “dialogue/negotiations with management” as the most effective activist strategy to achieve desired results.  None of the other proposed strategies – shareholder resolutions, publicity campaigns, proxy contests or litigation – received more than 16% of the vote.

Results of the study were highlighted at SRZ’s Shareholder Activism Conference in New York, which I attended as part of an invited group comprised mainly of hedge fund and private equity fund managers. Continue reading →

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by | November 15, 2010

IRO-zilla and the Earnings Call

There is a popular cable network TV show called Bridezillas that often depicts women planning their wedding day as high-strung, unreasonable and at times displaying jaw-dropping outrageous behavior.  Of course, this makes for great reality TV, but at times I find myself sympathizing with these women.  After all, it will be the biggest day of their lives – it had better go as planned! 

Similarly, the quarterly earnings call is one of the biggest days in the career of investor relations professionals and their companies.  A seamless call is an IRO’s opportunity to shine.  A call riddled with issues will damage his or her credibility.  These calls require weeks of careful planning to ensure that the right messages are communicated effectively to shareholders.  However, much like the bridezillas have to rely on other people to design a dress, coordinate the flower arrangements, bake the cake, etc., IROs must work with a variety of outside providers for the services necessary to facilitate an earnings call.  With so much riding on the line, there is no shame in taking on the IRO-zilla role and demanding, rather, clearly stating needs and expectations.  The IRO’s professional reputation is at stake. Continue reading →

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by | October 25, 2010

Prepare for Proxy Access Now – Avoid an Activist Horror Story Later

Hello again.  We took a bit of a hiatus from blogging this summer, but we are now back to share a Halloween story sure to scare you straight! 

Unless you are one of the 33 Chilean miners that were trapped underground for the past two months, you have likely been watching the drama unfold on Capitol Hill as the Business Roundtable and the U.S. Chamber of Commerce challenged the legality of the SEC’s new proxy access rule 14a-11, which allows qualifying shareholders to nominate directors for election at shareholder meetings and requires the corporation to include those nominees in the standard proxy statement.  The petitioners claim that the new rules are subjective and violate federal and state law and the United States Constitution, and that the SEC did not assess the effect of the rules on efficiency, competition and capital formation.  As a result, implementation of the rule has been delayed pending a resolution of the Court of Appeals.  So the new proxy access rules will most likely not be implemented until the 2012 proxy season, at the earliest.  Upon hearing this news, public corporations across the nation let out a collective sigh of relief. Continue reading →

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by | July 14, 2010

How to Build a Compelling Investment Thesis for Your Investor Presentation

In a recent blog post, “Giving Life to Your Investor Presentation,” David Calusdian suggests a number of valuable ways to improve not only the investor presentation itself but importantly the delivery of the content. One critical element identified by David is the development of a strong investment thesis that ultimately binds the presentation together. What are the secret ingredients that make for a compelling investment thesis? The answer to this question lies with investors and Wall Street analysts – your audience. As a former equity analyst, global sector head and portfolio manager who’s constructed, presented and reviewed hundreds of investment theses, here are several elements worth mentioning:  Continue reading →

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