Posted on August 3rd, 2016. Posted by Chris Brinzey
One of the more common things we hear from current and prospective clients is their desire to get more coverage from the sell side. This is particularly the case when the company is smaller in size, is a “restart,” or is an international company looking to list on one of the U.S. stock exchanges. Here are a few things to consider as you look to expand your sell-side coverage.
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Posted on July 20th, 2016. Posted by Mike Piccinino, CFA and Jack Powell
Background:
The Division of Corporation Finance (the Division) is a branch of the U.S. Securities and Exchange Commission (SEC) that supports the SEC’s mission to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” Among its duties, the Division “provides interpretive assistance to companies with respect to SEC rules and forms and makes recommendations to the Commission regarding new rules and revisions to existing rules.” This duty is performed, in part, through the issuance of Compliance and Disclosure Interpretations (or “C&DIs”) on a variety of subjects.
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Posted on July 13th, 2016. Posted by Peter Vozzo
In investor relations, credibility is everything. When your authority is damaged, everything you tell the Street will be filtered through the jaded minds of professional skeptics who remember your past failure to deliver, or a time they felt misdirected. That’s why it’s vital to maintain a constant focus on sustaining and growing your level of trust with investors.
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Posted on July 6th, 2016. Posted by ICR Westwicke
If you are a healthcare company executive who is contemplating, in the process of, or has completed an IPO, chances are you have met with a number of investment banks. In these meetings, each bank shows a varying number of league tables that position the bank in a positive light relative to its peers. The data presented is useful for finding banks active in your space, but the parameters defining the table can be adjusted to portray any institution in a position of relative strength. The bottom line is that investment banks are good at what they do, and all of their bankers are bright, diligent, capable, client-focused, and extremely hard-working professionals. Without these attributes, they would not be in such a role.
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Posted on June 15th, 2016. Posted by ICR Westwicke
The goal of exemplary investor relations at any publicly listed company should be the achievement of a fair market valuation. However, for those working in an IR function for a biotech firm, it’s important to understand that how the market values your company will be quite different from how it values any other.
While companies in every other industry are valued based on their expected profitability compared with cash flows and other potential investments, biotechs are typically expected to lose money in the short- and medium-term, attaining profitability only a long time into the future. And that future is subject to a substantial amount of risk.
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Posted on June 8th, 2016. Posted by John Woolford, MBA
Providing investors with guidance is a key component of any IR program. It is a company’s main avenue to set expectations. Management credibility, an important factor in a company’s valuation, is significantly driven by delivering on these expectations.
When providing guidance, we recommend that you keep these important themes in mind:
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Posted on June 1st, 2016. Posted by Mark Klausner
Maintaining a vibrant and compelling shareholder base is one of your management team’s most important responsibilities. Your current major investors need to feel that you know them and are available to them when necessary. Yet you must also be thinking constantly about attracting new investors to your company.
Companies ask us frequently for ideas on how they can broaden their investor base, so I polled our team for some of their best responses.
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Posted on May 18th, 2016. Posted by ICR Westwicke
Thousands of public companies have just released their quarterly earnings and held those dreaded earnings calls — far more dreaded for those whose numbers missed estimates. While they’re not much fun for anyone, it can’t be overstated how important earnings calls are for your reputation as a leader and for the prospects for your stock.
The call is your chance to communicate your story to the world, to put your perspective formally into the public record. And it’s your investors’ and analysts’ chance to seek clues about your future prospects. In short, the call is something you just can’t afford to mess up.
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Posted on May 11th, 2016. Posted by Asher Dewhurst
Your company’s investor relations website is one of your most important tools for communicating with existing shareholders and attracting new ones. Yet too often the IR website is neglected, with outdated or irrelevant information, multiple versions of the same document, and obsolete design.
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Posted on April 20th, 2016. Posted by Mike Piccinino, CFA
In the world of small-cap healthcare, we have observed that the class of asset managers who are collectively referred to as “hedge funds” are often viewed negatively by executive management teams, particularly those that are new to the public markets.
This tendency is understandable in light of the fact that hedge funds, as a whole, most often attract media attention when they’ve disclosed a sizable position in a company with activist intentions (“corporate raiders”), or when they’ve come under the scrutiny of regulators. These high-profile examples distort the public perception of hedge funds overall.
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