Anil Dilawri » Add new tag Taking Investor Relations to the Next Level Fri, 24 Sep 2010 12:25:24 +0000 en hourly 1 Obvious? I Wish. Fri, 20 Feb 2009 17:08:33 +0000 Anil Dilawri I recently came across an analyst research report that simply stated the following:

“We are suspending coverage on <<anonymous company name>> as we have been unable to access management to discuss developments at the company. Our previous ratings and fair value opinion are no longer valid.”

So, let me get this straight – an analyst is covering your small cap company and wants more information about your company so that he can get more investors to buy your company’s stock. 

Sounds like an important stakeholder to me. 

Unfortunately, he can no longer cover your company because he can’t get enough (or any) information from you about the company.  You won’t return his calls and emails and you won’t meet with him.

Hmmm.  Not exactly a recipe for success when it comes to IR.

Not only should your company be talking to sell-side analysts, you should have a regularly updated strategy of how to effectively engage each analyst that covers you (or may cover you).

An Investor Relations Officer (IRO) once said to me – “We don’t speak with that analyst.  He doesn’t like us.”  This may sound ridiculously obvious, but, that’s not the kind of analyst engagement strategy that leads to an effective IR program.  I wish these kinds of statements from IROs were rare….but they’re not.  They are actually far too common.

No matter what the size of your company is, you need to get your analyst engagement strategy in order.  In most cases, you need them more than they need you!

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Every Breath You Take Tue, 10 Feb 2009 14:40:43 +0000 Anil Dilawri The financial community is fickle.Investigate Institutional investors and analysts who love you today can, and often will, leave you tomorrow if you give them a reason to.  Investors and analysts, rightly or wrongly, watch every move you and your company make.

Here are just a few attributes that the financial community examines when looking at your company:

  • Management’s body language during a one-on-one meeting – if you fidget while answering a tough question then something is wrong.
  • Management’s tone on a conference call – if you are agitated by a particular question then a vulnerable area of the business has been exposed.
  • Attendance (or lack of attendance) at an investor conference – you didn’t show up, so obviously you don’t want to face the investment community. Business must be bad.
  • Responsiveness to information requests – you haven’t responded to a voice mail and email from 3 hours ago.  Clearly you are avoiding investors.
  • Updates to forward looking statement disclaimers – there is something new in this quarter’s disclaimer, therefore the lawyers are sensitive to something new.
  • Traffic (or lack of traffic) at your tradeshow booth – there’s only a few people at your booth.  Your product is obviously inferior.

Top notch investor relations departments attend to every detail.  They account for all of the above attributes and dozens more.  They are prepared.  They rarely give the most skeptical of investors and analysts a reason to be skeptical.

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