Aggressive outreach initiatives are needed for this challenged economy
What CEO doesn’t “feel” his suffering share pricing?
Managing share pricing starts outside the office! Adding value entails reducing the perceptions of risk.
History is a great teacher; I remember one CEO who stated his role was to manage the share price and then the company initiatives. He was totally committed with his energy and efforts reflecting this dedication. There wasn’t anyone he did not know or try to be in contact with and he always delivered or explained why and what he could or not do with his platform and strategy. He built confidence by listening and continually evolving his strategy to strengthen his investor base and share price! So, what is the solution?
We all have two ears and one mouth and CEO’s, in particular, need to use them in “proportion” for outreach.
- Define your own shareholder base, comparables and and peer asset investors; call and measure their input, meet with these investor bases to solicit what will differentiate or position platforms;
- Build relationships by analyst days or meetings, mini and non-deal road shows, investor letters and direct contact can drive awareness and possibly commitment;
- A retail broker meeting a day “might” drive volume and replace the aspirin needed for a depreciated share price.
Communication, perception audits and press releases augment visibility but PR doesn’t always define the event to share pricing. Identify quality independent analysts with a broader distribution i.e. via the web as most I-Bank research is being controlled by limited distribution to increase trading commission to institutional clients or to retail brokers within their firm client base.
- Connecting with local journalists, PR specialists, network feeds, blogging and/or social media sites could heightened the awareness of investor thinking and elevate market knowledge and event orientation;
- Any new idea or application should at least be considered and maybe tried re outreach! Old fashion answers work; hear what they’re saying, be resourceful, not defensive and communicate candidly.
The Bottom line: Those companies that continue to hide as investors begin to augment their portfolios will be too late! Paraphrasing an economic principle by Adam Smith’s “The Invisible Hand”; the greatest benefit to a company is brought about by executives leading not waiting or following. The key component is getting out of the office and personally taking control of outreach to the investing public.
