Is there such a thing as too much investor marketing?

09 July 2010

For many IROs, it seems like they are on the road with their management all the time. Be it for non-deal roadshows or institutional conferences, the investor marketing schedule never seems to pause for some.

So, is there such a thing as too much investor marketing?  Tough question.  My answer is – it depends.

No CEO wants to be branded as overly promotional when it comes to his/her IR activities.  However, the CEO wants to be thought of as accessible and open to in-person meetings.  It’s a fine balance.

Ask yourself the following about your investor marketing meetings:

  1. Are you seeing new investors or the same ones over and over again?  New interest in the stock/company is a good sign that your marketing efforts are worthwhile.
  2. Are investors coming to meetings with prepared, well thought out, insightful questions or are they passive and seemingly “going through the motions” when meeting with you?  If they are truly interested, you will be able to tell.
  3. Is sell-side sponsorship of your roadshows subsiding? Sell-siders love taking companies on roadshows, unless they are having trouble filling a day of meetings for you.

Admittedly, many companies find themselves experiencing the opposite problem – not enough marketing.  But for those who market well and market often, keep it up.  Just be cognizant of the Street’s interest level in meeting with you.  Sometimes we need to allow the Street some time on their own to digest the success of your company.

2 Responses to “Is there such a thing as too much investor marketing?”

  1. Trevor Heisler

    Nice post Anil. Yes, indeed there can be too much marketing under certain circumstances. Importantly, some CEOs need to keep in mind that meetings don’t drive stock performance on their own – a topic I wrote on last Friday as well – http://post.ly.mVuj

  2. Trevor Heisler

    Sorry, my link should read http://post.ly/mVuj

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