Attracting investors is a critical for share price appreciation
This is the time to redouble and triple investor outreach. The economy seems to have made a bottom and the consensus is the worst is behind us.
Yet, many companies think that pulling back not pushing out is the way forward. In this market, it is all about relationships! With the disappearance of many brokerage firms and analysts, it is even more crucial to develop external investor access.
- Start by defining a constituency of investors, asset managers, high-net worth individuals, institutional and retail brokers that might listen. Who are your peers or comparable investors? Call them or have someone knowledgeable call them. Aside from generating interest in your stock; calls or meetings with investors provide you with the opportunity to fine tune your pitch … i.e. investing thesis into an actionable value proposition.
As professionals, we must understand the issue of “forward looking statements” but when was the last time CEO’s issued quarterly letters to their current shareholders, had an investor open house or even called them? When was the last time a “perception audit’ was initiated by an independent analyst? Small-cap healthcare investors with some or no access to research need – quarterly updates, timely intelligence and fact supported Information. Also, these same investors with diminished portfolios are afraid of being left behind in any nominal market rally.
The Bottom Line: Outreach, outreach and then more outreach; even if you loose a few, you gain more from the transparency of your operations and then maybe more. But, remember, CEO’s must deliver that articulated … plan going forward; even if the trial fails or the market tanks through the following quarters – define your contingencies – keep shareholders posted! …. Blah, blah – so one might say but, visiting the gas station; I got into a conversation with the owner who queried me re specific stem cell companies, surprisingly he had quite a basket within his portfolio. The next time, I visited he mentioned he had bought more based on our “informal” conversation. Who would ever “thunk” it but, no discount on gas. That was just one of the many incidents, it starts with one!
