The ii6 Law of Attraction: Make Investors Care.
Make me care is the theme that every CEO of every public market company must address everyday and, in every communication today. The days of a guaranteed audience are over I discussed with a market maker over coffee this morning. After all, if we are lucky enough to engage an audience in anything from our actions to our website – we must fight to make them care?
News releases arrive all day long from one public company after another, trying to separate themselves from the hoards of text written by professionals taught to wring emotion from their content and simply output data. Repeat, they do it again as I review one company this AM with no stock momentum, but 52 news releases out since January 2018. Certainly, someone needs to tell them to stop, review this pattern and redirect, as surely (in this case) this isn’t working. Repeating a formula that has a pattern of no success is the definition of insanity…not to mention dissatisfied shareholders.
We are going to attempt to relieve some pressure with a new formula we are calling — the ii6 series.
Often, the message to demoralized management is that the inability to secure trading at an effective market valuation has nothing to do with corporate performance but with a lackluster audience where simply put, no one cares…
So, make them care.
Pending a Company has the right management (1), the right story (2) and is achieving benchmarks in a timely manner (3): why do some companies outperform their peers and fly zealously into record breaking trading zones while others might as well not get out of bed?
Today we are taking on the topic of face-to-face time as we know this works.
Attending events regularly over the years, I recently attend an event where the investors were real but when we analyzed the stock volumes and charts for 1-week after this meet and greet, we saw no marked changes.
Reviewing the process, another text message arrives with a repeated request with: “You must come to Monaco for this event. The richest investors in the world are here.”
But are these investors REAL? I asked my source a rhetorical question to which he ignored. Looking at the bios, it was clear that this crowd was NOT interested in small caps but in marketing their own investment deals. Again, providing the wrong opportunity for public companies to conclude incorrectly that marketing does NOT work, the goal is to make a difference with the right audience.
In order to attract new shareholders or build on existing ones, one must have an audience as interested in you as you are in them. It’s simple, once you have interest, you must make your audience care — understanding that the tarmac around you is littered with metaphorical private jets just like yours, vying for attention…for validation…it works, but it takes a team.
Often CEOs don’t want to perform for investors, they want the story to sell itself. Stop – redirect, as the pattern of ‘build it and they will come’ is not only ineffective in today’s market, it is only one part of the equation and will not move the stock on its own.
Regularly invited to cocktails and public market story updates I ask myself, have I ever been to an event with free alcohol in which I have ever seen a stock move the next day? The answer is a resounding no.
Again, stop – redirect and let’s figure out what really works as strong performance for the leading performers will reward us all.
Recalling special events in exotic locations, I remember how companies flocked to these ultra expensive invitation-only ‘experiences’, ‘once in a lifetime’ events and considered —- did these VERY expensive ventures move these stories? And yes, while it arguably did a decade ago, today this is unrecoverable money…down the drain funds…
So how to win a game where the rules change daily and are compounded by endless technologies that everyone claims works?
It’s simple: ask yourself what works for you. Here is an example of what I do. Usually I go to Google News and look up “gold stocks” when I have an interest in gold. The intent is to see what companies have breaking news. What I don’t do is review my Instagram account for the latest gold update. Also, I do enjoy hearing CEOs present a I am an investor that likes to ‘bet on the jockey’. But what I don’t like doing is being trapped on an island for a conference for a week where I may have to see how well this CEO operates with a sunburn, over exhausted and over intoxicated. These events now are avoided at all costs…for me.
And for this reason, InvestorIntel is starting the ii6 series. Once a month, 6-companies present for 12-minutes each to 3-dozen investors: 90-minutes in and out. No fancy meals in private jets, just the CEOs investing vying to make you care. Our 1st ii6 will be taking place at the King Edward on Thursday, August 8th from 930-11AM (registration at 9AM). We will confirm first come first serve presenters and investors and…we will feature any company on InvestorIntel in the consequent week who showed us that they really can — make the investors care! Email me if you want more information at [email protected]