The Power of an Analyst

11 July 2008

Financial analysts are powerful stakeholders in a corporation – and they know it.  When financial analystsFinancial_analyst initiate coverage on a company, upgrade a rating, downgrade a rating, or make significant statements in their research, then investors listen.  Stocks can swing from 1% to 20% based on what an analyst says or does.

So why do too few companies (especially at the small and mid cap level) not continuously engage financial analysts?  At H&K, we use the term “stakeholder engagement” a lot.  It’s a fancy term for “talking to and informing people who are important to your business”.

I believe effective financial analyst engagement is the most important (and scalable) ingredient to a high quality investor relations program.

Have you talked to a financial analyst today?

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