Tips For Managing Extreme Swings In Market Cap
At the IR Magazine Awards – Europe 2015, Guido Pickert, director of IR at German tech firm Aixtron, discussed how the role of IR changes with swing sin market cap. Aixtron’s market cap fluctuated from over €3.5 billion to €800 million at the time of his interview.
While Aixtron is a small cap public company, extreme swings in market cap are something most microcap management teams can relate to. Pickert explains that, when the price is high you spend time managing expectations and when the price is low you need to reassure investors.
This is pretty basic stuff but sometimes the basics are the most important. Management teams of microcap public companies often get caught up with swings in their market capitalization. Instead, try to have confidence in what your business is worth and communicate that clearly to investors.