Company desperately NEEDS an IR program: A succ
Post# of 9122
A successful investor relations program consists of a proactive, direct and comprehensive strategy, all of which ensures exposure among investors. Companies that communicate frequently, forthrightly and thoughfully are rewarded with more loyal shareholders, reduced share price volatility and more rapid appreciation as milestones are achieved. Companies that have sufficient trading volume / liquidity and an established base of institutional investors can typically raise capital for acquisitions within 30 business days.
Importance of Institutional Investors
Institutional investment firms, such as traditional investment companies, hedge funds, mutual funds, brokerages, insurance companies, pension funds, family offices and endowement funds, are entities with large amounts of capital to invest.
Institutional Investors have a positive effect on the stock price of the companies in which they invest. This effect materializes through different mechanisms; institutional investors reduce information asymmetries between the firm and other investors, contribute to the liquidity of a company stock and improve the company's corporate governance.
Public companies that have institutional shareholders are more liekly to raise capital for acquisitions within 30 days.
Institutional Investors - A survey of 500 money managers that invest in small and mid cap companies (market cap of $500 million or less) identified that 98% of all buy-side money managers that were queried rated ' information about a public company in an easy to read format that takes less than 5-minutes to read' as their preferred method of being introduced to a public company for their initial investment consideration.
The vast majority, 96%, considered a one-on-one meeting as a requirement prior to making an investment.
48% favored general conference calls and less than 29% use a company website as the initial source of information.
Retail Investors (Individual Investors) - Providing factual information to retail investors and answering their calls and emails is the best investor relations strategy and communications program a public company can have. It is important to respect the importance of retail investors, and spend the necessary time on the phone or reply to questions via email with details.
MERRY CHRISTMAS