Back to Basics

We’ve all heard the familiar adage, “The more things change the more they stay the same.” While the internet and electronic access to financial information via corporate websites and service providers have dramatically changed investor relations practice in recent years, we are happy to note that  many investors are going "back to basics" when it comes to deciding where to allocate investment dollars.  PLR has always advised our clients  that  there is nothing like a face-to-face meeting to communicate a company's story.  And, who better than the CEO to tell that story?  Firms like ours spend a fair amount of time carefully vetting investors before introducing clients to potential shareholders because we want such meetings to be a mutually productive use of time for both parties.  We are keenly aware that CEOs have to juggle many hats these days, so we strive to use their time judiciously.  As a recent article in The Wall Street Journal points out, More Investors Demand CEO Face Time - WSJ.com, CEOs are spending between 20%- 30% of their time meeting directly with investors.  While IROs and CFOs can provide excellent background material,  a growing number of funds and institutional investors have instituted a policy that requires at least one meeting with a company’s CEO before making their investment decision.  We think this is a good trend for both sides.  After all, what better way to determine what your investors are thinking? Face-to-face  meetings allow  investors to gain great insight into corporate management, and  they also give CEOs invaluable feedback that leads to better articulation of corporate messages and actionable plans to  help improve overall performance.  So, while all of us have embraced technology in IR practice because it has enhanced our efficiency and ability to access information, it's worth remembering that the fundamental tenets we learned in  Basic Investor Relations 101 haven’t changed.  Companies need to get out there and  tell their stories, face-to-face, to the right audience.  It’s not revolutionary, but it’s best practice.