Should MicroCap Public Companies Distribute Negative News?
David Collins of Catalyst IR recently shared a post on IRMagazine.com in which he wrote “News is neither good nor bad but a string of data points on a long road“.
Collins says that clients have asked them about issuing press releases about bad news, specifically disappointing results. His advice; “For investors, the guiding rule is to keep them informed as they are owners of the company and all news (good and bad) is important.“
So, should microcap public companies distribute negative new? Answer, Yes! In short, Collins says that not sharing bad news and only sharing good news can be severely detrimental to shareholder trust and this long and short term stock performance.
Some advice for sharing negative news? Collins strongly recommends getting ahead of the rumor mill by:
1) Moving as quickly as you can
2) Framing the message in your own words and with proper context
3) Putting the news in investors’ inbox and pushing it to the channels investors and analysts monitor
4) Following up with key analysts, investors and media to make sure they saw the news
5) Being available and proactive in addressing the inevitable uncertainty and questions from key stakeholders.
Learn more HERE.