By Dennis Walsh, Vice President
I recently was interviewed for an article for IR Magazine titled, “Sell-Side Analysts: The Many and the Few.” The article discussed how some companies manage a full roster of covering sell-siders, while others struggle to maintain or attract just a few. In today’s market, it seems more common that IROs are in the latter situation and are frustrated by the limited return on their efforts to attract coverage.
There are many factors that contribute to the lack of adequate sell-side coverage, and all of these factors relate to the sell-side’s inability to make money by working with a particular company. Low trading volume plagues companies vying for attention from both the buy- and sell-side. The buy-side avoids low-volume stocks because they cannot easily get out of the stock, and the sell-side won’t cover a stock because the lack of buy-side interest limits their ability to generate trading commissions. It’s a vicious cycle. In addition, the lack of investment banking business may create a barrier to coverage. The bottom line is that the bank needs to make money in some way from the research coverage since they are not being compensated from the buy-side in hard dollars.
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IR Program Planning,
Corporate Access,
Sell-side Research,
Targeting,
Investor Relations Agency,
Buy-Side,
Sell-side Coverage,
Investor Conference,
Roadshow Planning,
Small-cap IR,
Investor Relations
By Dennis Walsh, Vice President & Director of Social Media
The SEC finally has provided guidance on the use of social media for investor relations. The guidance came in a report on its investigation to determine whether Netflix CEO Reed Hasting had violated Reg FD. In a Facebook status update on his personal account, Hastings said Netflix had streamed 1 billion hours of content in June 2012, calling into question whether the post was selective disclosure of material information.
In its report, the SEC clarified that companies can use social media outlets like Facebook and Twitter to announce key information in compliance with Reg FD. It’s the moment we’ve all been waiting for, but with some key caveats.
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IR Program Planning,
Reg FD,
Investor Relations Agency,
SEC,
IR Website,
Disclosure Policy,
Shareholder Communications,
Earnings Call,
Social Media,
Small-cap IR,
Investor Relations,
Socialize IR,
Earnings,
Investor Relations Firm
By Dennis Walsh, Senior Consultant & Director of Social Media
Let’s face it; you can’t ignore social media any longer…even as part of your investor relations strategy. You were hoping Facebook would go the way of MySpace and Friendster, but it keeps on growing and has even made its way into our world with its initial public offering.
Talk of Twitter used to elicit laughter in the board room. Now, competitors are using it to promote their brand; hedge funds are using it to decide when to make trades; and rumors spread like wildfires over the Twittersphere. Twitter companion site StockTwits has evolved as a popular platform for traders to share investment ideas. Add to that: YouTube, Flickr, SlideShare, LinkedIn, oh my! IR pros certainly put up a good fight, but it’s time to embrace social media…it’s here to stay.
Feeling a little overwhelmed? We’d like to help you with that.
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IR Program Planning,
Investor Relations Blog,
Reg FD,
Strategic Messaging,
Sharon Merrill Associates,
Investor Relations Agency,
IR Website,
IPO,
Social Media,
Small-cap IR,
Investor Relations,
Socialize IR,
Investor Relations Firm
By Dennis Walsh, Senior Consultant & Director of Social Media
As another year comes to a close, two things are probably on every IRO’s mind: New Year’s resolutions and next year’s investor relations plan. Every year, one of the most common resolutions is to get fit. People spend a tremendous amount of time and money developing new health and fitness plans to achieve that goal. This year, apply the same techniques to your IR plan in order to have a successful 2012.
Establish Achievable Goals
You may not be ready to compete in the Arnold Classic body building competition next year, but fitting into that new bathing suit by summer is certainly a realistic goal. When developing your 2012 IR plan, set equally realistic expectations. For example, expecting to grow your capitalization from a mid-cap to a large-cap in just a few months is likely an unrealistic benchmark. Instead, focus on more achievable metrics, such as meeting with a greater number of investors, attending more conferences, or increasing trading volume. Meeting these goals will support your ultimate goal of maximizing shareholder value.
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Holiday,
IR Program Planning,
Board Packages,
Investor Relations Blog,
Board Communications,
Annual Meeting,
Sharon Merrill Associates,
Investor Relations Agency,
Investor Meetings,
NIRI,
Investor Conference,
IRO,
IR Budgets,
IPO,
Shareholder Communications,
Social Media,
Small-cap IR,
Investor Relations,
Investor Relations Firm
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”:
Things that could have been brought to my attention YESTERDAY
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.
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IR Program Planning,
Shareholder Surveillance,
Targeting,
Investor Meetings,
SEC,
Buy-Side,
NIRI,
Shareholder Communications,
Roadshow Planning,
Small-cap IR,
Investor Relations
I recently had the opportunity to speak with Chris Lahiji, Founder and President of LD MICRO, a by-invitation only newsletter firm that focuses on finding undervalued companies in the micro-cap space and providing research for its clients. Since 2002, the firm has published an annual list of recommended stocks as well as comprehensive reports on select names throughout the year. We touched on a variety of topics from corporate access, annual reports and even the future of sell-side coverage. Chris’ unfiltered views on these subjects are refreshing and insightful for any investor relations practitioner.
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Corporate Access,
Interviews,
Annual Report,
Sell-side Coverage,
Investor Conference,
Social Media,
Small-cap IR,
Investor Relations
