Daily Investor Communications
Daily Investor Communications are responses to calls, emails and
mail from the investment community including individual investors, the
financial media, stockbrokers, institutional portfolio managers,
buy-side analysts, sell-side analysts, investment bankers, venture
capitalists and any individuals looking for financial information on
the company.
Earnings Release Assistance
This includes the drafting of the earnings release and quarterly
conference call script, the logistical arrangements, the final
distribution and participation. Drafting and input assistance makes sense as Fi.Comm is daily
conversing with the investment community both on our new clients and
other software companies as well.
Daily Update and Maintenance of Financial Database
A company's financial database is its investor
relations foundation; therefore it is imperative to build and maintain
the database correctly. Fi.Comm's specially designed database
properly codes each individual including sell-side analysts, buy-side
analysts, portfolio managers, stockbrokers, interested individuals,
individuals seen by the company, and media that have requested
information. We also rate each individual, maintain a contact log and
update the database every day to assure its integrity. By doing this,
the database can be used as a strategic tool for constructive on-going
communications.
Review and Coordination of PR Releases
Fi.Comm is on the review committee and makes limited suggestions to
managament. As Fi.Comm is the contact for the investment community on all these
releases, we feel it is important that we are aware of and have a good
understanding of the press that is being launched. Further, it is our
belief that the IR and PR messaging should be parallel and in
synch.
Update Calls with Management
Once a week Fi.Comm has an update call with members of the senior
management team. These calls typically are 20 - 60 minutes long and
provide a good mechanism for needed on-going communications and
updating. Often times additional calls with management are necessary
for a variety of reasons.
Investor Collateral Review & Update
Each quarter, or whenever a noteworthy event has transpired, the
company's collateral including the IR slide presentation, the web site
and the IR Kit should be reviewed with Fi.Comm and edited to reflect
the most current news and information.
Tracking of Market Makers, Analysts Models & Institutional
Shareholders
Tracking of this information is imperative to properly communicate
with the investment community as well as understand the current and
important players involved with the client and its peers. Market Makers: Fi.Comm often goes directly to the
trading desk to find out what/who is causing the activity for our
clients. Without knowing the specific trader who is trading the stock,
it is often impossible to get immediate and accurate information. For
that reason, each month we update the trader list and introduce
ourselves so that an ongoing relationship is established.
Institutional Shareholders: It is imperative that our
clients know who their institutional shareholders are. A monthly
update of institutional owners (based on 13(f) filings, including
which institution holds the stock, the individual portfolio
manager/analyst responsible for that equity position, their investment
style, and their contact information is determined and provided. Fi.Comm highlights any new entries and/or aberrations. Analyst's Models: As we all know, the sell-side analyst plays an
extremely influential role in the financial community. They can be
the, purveyor of public opinion and perception. Knowing their current
opinions and estimates is imperative. Each month, or whenever a change
in estimate or opinion is made, our clients analysts send us their
updated models. We in turn combine all this information into a single
format to use on a daily basis while communicating with the investment
community.
All 3 of these reports are sent to client management each
month.
The following activities are suggested to increase and broaden the
awareness of our clients within the institutional investing
audience.
Sell-Side Analyst Introductions
Using peer company analysis we would suggest a minimal quarterly
effort to identify and introduce our clients to a small number (4-8)
of sell-side analysts. While immediate coverage is not as likely, for
our small cap clients, given the company's current market
capitalization, it is an effort we would encourage in order to "get up
the curve" while the company's performance and stock price improves.The process would include the following
steps:
- Peer group analysis to identify appropriate analysts
- Call by Fi.Comm to assess level of interest
- Virtual Meeting (see below)
- Private meetings and/or calls to further develop relationship
- Assistance with Initiation Report
- Teach-In to sales force at Investment Bankers
- Ongoing support and communications
Buy-Side Analyst and Portfolio Manager Refresh and
Introductions: Fi.Comm has built good relationships with numerous portfolio managers
and buy-side analysts. While market capitalization might prevent some from
making commitments right away, they will be ready to invest as the stock
rises.
The following process would be used to initiate this
activity:
- Contact to each of these individuals to assess their interest
level
- Virtual Meeting (see below)
- Private meetings and/or calls to further develop relationships
- US Roadshow participation (see below)
- Ongoing support and communications
Introductions: For our small-cap clients present market
capitalization level, any new introductions should be highly targeted.
Specifically only management firms that specialize in micro-cap, have
low portfolio turnover. Further, introductions should be done on a
regional approach in order to best leverage the US Roadshow
program.The following process would be used:
- Regionally target portfolio managers that fir the above
description
- Virtual Meeting (see below)
- Private meetings and/or calls to further develop relationships
- US Roadshow participation (see below)
- Ongoing support and communications
Virtual Meeting Program
This program is designed to continuously refresh our clients
financial database with qualified potential investors and sell-side
analysts as well as keep these qualified individuals informed about
the company.Each week Fi.Comm coordinates a group of 4 to 6 attendees to
participate in a 35 minute "Virtual Slide Presentation" given by our
clients CFO or CEO via the internet and in conjunction with a
teleconference call. The web cast is controlled by Management via
their desktop computer. Following the presentation, listeners are free
to ask questions. The goal of the Virtual Meeting Program is to
economically, efficiently and consistently introduce a group of
qualified buyers to our new clients.
US Roadshow Program
As the above programs mention, at some point a
face-to-face meeting with analysts and portfolio managers is critical.
Fi.Comm suggests management consistently visit a city or region every
6 weeks. These cities or regions include:
- So. California (LA & San Diego)
- San Francisco
- Pacific Northwest (Portland & Seattle)
- Mid west (Denver, Kansas City, Minneapolis, Chicago &
Milwaukee/Madison)
- New York
- Boston
- Philadelphia/Baltimore
Often times these tours can be in conjunction with
any industry or financial (investment banking) conferences that our
client may already be attending. Fi.Comm is able to facilitate these
roadshows and often coordinates these outings with the company's
analysts/investment bankers.
European Roadshow Program
While not immediately suggested, as the company's market
capitalization grows a European Roadshow should be considered.
European investors are often the best to have as they typically
longer-term holders and truer
"investors".
Analyst Day
Each year our client should hold an Analyst Day for its
institutional audience. Often times these events are held in
conjunction with a company's User Conference. The Analyst Day is a
wonderful way to highlight the company's goals and objectives as well
as lay-out all aspects of the company's growth strategy. It is a great
way to showcase your senior management team and highlight the breadth
and strength of the company. Fi.Comm is able to assist in this event
from preparing management's remarks and presentations, inviting the
appropriate attendees and working with the appropriate company person
who would most likely handle all logistics.
Retail Conferences
There are hundreds of conferences dedicated to the retail
investment audience. Fi.Comm has attended dozens of these and has done
due diligence and evaluated many others. Each quarter Fi.Comm represents 6 of their clients at a chosen retail conference. Because
of the multiple representation costs are minimal and attendance at the
Fi.Comm booth is always high.
Fi.Comm Retail Database Introduction
Over the past 10 years Fi.Comm has accumulated information on
thousands of qualified retail investors in its database.
These are individual investors who have contacted us directly and that
we have spoken to on behalf of our clients. For those clients who are
looking to expand their retail share base, we suggest an introduction
to these investors.
Financial News Letter Targeting
There are over 100 investment news letters in circulation today.
Many of these concentrate on under-followed, little known micro or
small-cap public companies. There value is to investigate overlooked
companies and highlight those they feel offer a good and sound
investment opportunity. Both stockbrokers and individuals investors
are big users of these news letters. Fi.Comm evaluates these news
letters and makes client introductions to those they find
credible.
Fi.Comm News Letter
Starting in July 2002, Fi.Comm is planning on initiating a
bi-monthly news letter that will highlight "recent news" on each of
their clients. This news letter will be emailed to both individual as
well as institutional investors and is designed to spark an interest
and the desire for more information. We believe, that all Fi.Comm clients will benefit, as they will have the advantage of hitting over
9,000 qualified investors every other month and will be included in a
group of public companies, where every reader has an interest in at
least one company and will therefore be likely to read the newsletter
to be updated on his or her particular stock but others as
well.
Web Vendors and Other Individual Investor Organization Suggestions
Today there are hundreds of investment vehicles for individual
investors to choose from to learn more about particular stock ideas.
These services come and go in rapid succession. Fi.Comm has a
dedicated person whose responsibility it is to evaluate these services
and organizations as they emerge and maintain a roster of those that
he finds worthy of attention and use. |