Experts Share The Main Areas SmallCap IR Teams Need To Focus On
Recently, the IRMagazine.com staff shared “How best to tackle IR for small caps.”
The article, produced by ELITE Connect and originally published on the ELITE Connect platform, included a Q&A with three small cap experts. These experts shared the main areas smallcap IR teams need to focus on.
Question: What are the main areas small caps need to focus their IR activities on?
Rachel Crossley (senior reporting consultant at Emperor): “Firstly, developing a clear and compelling equity story. Small caps need to think about their investment case: what they want to achieve and what it is that makes them unique and sets them apart from their peers. Then it’s about using a wide range of tools and channels – from the corporate website and annual report through to fact sheets and company presentations – to effectively communicate and cascade these messages to their key audiences.
Secondly, targeting and engaging directly with the investment community. While resources are limited and you can’t meet everyone, it’s important to work out who your most relevant analysts and investors are and reach out to them directly, using your existing conduits to share regular and timely information.”
James Houston (managing director at Jones and Palmer): “It’s important that the board and senior management are in agreement that long-term stock performance is the primary goal. If this is the case, focusing on communicating sustainable competitive advantage becomes a priority and avoids the pitfall of concentrating on short-term swings in stock price.”
Small caps should focus on producing communications materials that clearly convey the investment case, business model and strategy of the company. This will ensure the level of interaction that investors need with management will be reduced, as key questions about the company will already be answered.”
Steph Osborn (research analyst at Invicomm): “Communication and engagement needs to be a huge focus for small caps and their IR activities. Talking about all aspects of the business, not just the financials, is important to ensure key messages are conveyed directly to analysts, investors and, increasingly, to all stakeholders. And it needs to be timely.
Being direct and compelling not only generates interest but is also fundamental to the success of all IR activities. It’s also really important to have an understanding of your shareholders and potential shareholders – knowing who they are and how best to interact with them.”
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