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If you work for a publicly traded company, there are simple yet
effective steps you and your investor relations director can take now to
dramatically increase your company’s exposure and attractiveness to investors
thus bolstering share value and shareholder support. These are simple, yet
proven strategies for gaining and maintaining a loyal and ever-increasing
investor following. Read ‘em and reap.
[1] Stay One Step Ahead of your Investors – Provide accurate and timely
information about your Company
How do most investors tell a good stock from a bad one? They don’t…it tells
them. It tells them by its trading activity, volume, chart history, etc. But
most importantly, it tells them at the click of a button: "View Latest
Headlines".
In fact, do that right now. Go online (where most investors conduct their due
diligence and make their trading decisions) and view your company’s last five
press releases just as an average investor would. Based on what you see, is your
company’s stock a buy?
If you recently repainted the building; that’s great! Brag about it at the next
office party. But if your company just signed a multi-million dollar global
distribution deal--- spend the few hundred dollars on the press release. Better
yet…try dividing that one big PR into three or four smaller PR’s. When it comes
to substantive positive news, quantity is better than quality, also known as the
Shotgun Effect. When the news is not particularly flattering or general
housekeeping stuff, the reverse is true; keep those announcements few and far
between if possible.
Also keep your company’s website current. Be sure all recent press releases are
reflected on your company’s website and the information is updated quarterly. If
your company is not growing or changing enough quarter by quarter, somebody is
not doing their job. (For help with your website IR section or shareholder
awareness campaigns, try contacting the people at www.EvergreenMarketingInc.com.
[2] The Whispers of Happy Shareholders can be Deafening
Word of mouth is still the best advertising there is. If you get the chance to
speak directly to any of your shareholders try asking them how they first heard
about your company. The answer will most likely be, "from a fellow investor".
There are people out there right now who know enough about your company to
recommend it to everyone they know….or not. They’re called shareholders. The key
is keeping that army of voices well supplied with a steady stream of good news
to spread.
Remember, your shareholders can promote and discuss your company and its
investment potential in ways and places that you legally cannot. In this
Internet / information age, you, as an executive of a publicly traded company,
are one of the few who do not have total freedom of speech. Those shareholders
are your not-so-silent majority out there for (or against) you on the World Wide
Web, 24/7 in places you probably don’t even know exist.
If you really want shareholders to get excited enough about your company to tell
everyone they know about it, try getting one of them on the phone sometime or
sending a personal email; even if it’s just to say hello and thank them for
their support. Speaking directly to the CEO of a company they own stock in is
like talking to the Governor to some investors. I’ve seen it. More importantly,
I’ve heard about it.
[3] The Hungry Cat Makes the Best Hunter
If a tree falls in the woods and there’s no one there to hear it, does it still
make a sound? Who cares! But if your company releases positive news and there’s
no one there to hear it, someone will care; your shareholders.
Nothing discourages current shareholders (as well as potential future ones) more
than seeing a stock end the session with little or no increase in share price or
volume on a day when positive news is released. Sure, the wire services are
global, but more than likely, it will only be your existing shareholders who
will be watching for and (hopefully) reading your company’s press releases.
As we discussed earlier, the best way to attract future shareholders is by
utilizing current shareholders to help do the "hunting". Think about this; if
every one of your shareholders fully understood and believed that if there were
twice as many of them, the share price might be twice the price it is now. You
must keep your army of shareholders constantly growing if for no other reason
than the fact that all of your current shareholders will eventually sell your
stock and move on…it’s only a question of when.
[4] Get Organized. Get Ready. Get Going!
All eyes in the room are on you. "Okay Boss, what’s the plan?" And then you
answer….
Your corporate plan to increase shareholder support and awareness is like a
roadmap that details the fastest and shortest route to your destination.
Planning the trip is the easy part. Getting everyone else on board for the ride
may take some work. That "work" starts with everyone knowing what their specific
duties are and the most effective way of carrying them out.
This leads us to; "Get Going!" Activity creates productivity and productivity
creates new shareholders, as well as helps keep existing ones. You should put
together a 30 to 60 day calendar that outlines your shareholder awareness
program. You should be able to identify specific developments that should take
place during each week.
In the beginning, be sure to avoid the getting ready to get ready trap. Once you
have the bulk of your operation and team in place, get them started. Don’t get
too discouraged if your early results are less than hoped for. This type of
undertaking is more like running a marathon than a sprint. It may take a few
small steps at first to get your operation up and running for the long haul.
[5] You Cannot Expect What You Are Not Willing to Inspect
Delegation does not equal leadership. You need to stay updated from those
actually implementing your shareholder awareness and support programs. What they
do right and what they do wrong will determine the success of your program. Your
management (and inspection) of the program and those implementing it are key
factors in achieving your goals.
I’m sorry to say the bulk of investor relations duties are often viewed as a
necessary evil. However, if you want your stock to reflect a strong market
capitalization you need to be willing to go the extra mile. On behalf of your
shareholders, take charge of your investor relations program then let everyone
involved know exactly what is expected of them.
These simple yet effective steps will have a huge impact on how current
shareholders as well as future investors view your efforts to gain their support
by first supporting them. Leadership is easy….if you’re willing to assume it. |