We get it. Your options are out of the money, your cash account isn’t even there anymore, and if you had positions on margin, you’re ducking calls.
The shareholders that are left are listening impatiently to reassurance that, “the company has a strong balance sheet, and won’t be affected by broader market weakness. Corrections are part of the business and, effectively, nothing has changed,” (except for the value of their position). They’re nodding and wondering why they called in the first place, then rolling their eyes when you get to the part about “the stock representing tremendous value at this price…”
No, it isn’t a fun time to be on the IR desk. But this is where you earn your money, and the good news is: it’s out there to earn. Large corrections are the market going to cash. Treasury bond yield is down below 2% on money flying out of equities and commodities like it’s a fire drill. That money wasn’t in equities in the first place seeking safety, it was seeking growth. At some point, those funds are going to come back to seek value in the burned out wreckage in the stock market, and that point doesn’t figure to be far off. We’re already seeing strength in the Russell 2000. Volume is up, and that means someone buying. As the saying goes: “volume gets volume”.
That isn’t to say that we’re ready to call a market reversal, just that the nature of growth seeking investors is to look for bargains – and the smartest IROs are set to get busy making their companies look like bargains, and quickly.
The Bargain Shoppers Are Out: Get Their Attention
Make no mistake, they’re out there looking for deals. For some investors it’s practically a compulsion. but low prices don’t mean anything: they’re looking for value. And it’s up to you to show it to them.
Every company has an angle – it’s frugal, it’s innovative, it’s essential. It’s the name in widgets! The world didn’t stop turning just because the market fell out of bed, and the piece of it that YourCo provides or services hasn’t gone away, it’s just available to investors at a better price.
Of course, that’s true of the whole sector and practically the entire equity universe, but only some of them will be smart enough and hard-working enough to make sure they’re visible enough to take advantage.
The companies that do find the bargain shoppers and keep them coming in are the ones in a position to find the momentum buyers who follow them when things start to turn around… but only if they’re pushing a consistent message with fresh, regular content.
Stay On Target
A clear, consistent message in an inviting and plain package is what gets attention and keeps everyone on message. A company that isn’t pushing regular content and micro-content can’t expect new interest, can’t expect new buying, and is likely to be forgotten.
IR Smartt has the experience to help IR desks put their messages directly in front of investors that are seeking bargains at the moment they’re seeking them. Our targeted distribution initiatives are built to put our clients’ custom digital investor literature directly in front of the investors who are most likely to read and understand it. Clients don’t have to wonder whether or not the material is being digested or who it’s reaching, either. Our inbound monitoring service lets them know who they’re reaching (specifically) and how often. IR Smartt clients know who they’re reaching, and are in a position to follow up directly.
Drop us a note and let us know why your company is a bargain. We’ll be happy to show you how to target it to the hundreds of billions of investment dollars evaluating equities right now.
Hopefully, you’ll be able to get those options re-priced first.