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Welcome to Nvestcom
Shareholders are demanding that their rights as owners of the company be recognized. Corporate boards are under ever increasing scrutiny and pressure to justify themselves. The cost of capital is high for those companies who do not pay attention to their investor base on an ongoing and consistent basis.
One single business model for a capital market or corporate governance strategy and structure cannot be applied to companies across the board. Each organization is unique and requires its own tailored plan for interacting with investors, for raising money, and for its board structure and practices.
While many companies choose to use their internal resources for an array of capital market and governance strategies, many corporations are choosing to outsource to an external partner. There are many reasons to justify this decision:
Resources are not available internally;
Outsourcing reduces operating costs;
Companies can gain access to specific and focused expertise and internal resources can be used for other purposes, increasing organizational efficiency.
Nvestcom is a trusted partner, providing strategic counsel to companies of all sizes, across all industries. Services include investor relations, corporate board advisory services, and capital raising strategies. Tailored solutions and effective messages are conceived and implemented to bring companies the competencies and solutions needed to meet the demanding needs of today’s capital markets.
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Corporate governance is longer an activity taking place behind closed doors in the revered boardroom. It has become a top priority for companies, their boards, their investors, and inadvertently, their investor relations professionals.
 In mid December of 2009, the Securities and Exchange Commission adopted new disclosure regulations that apply to the 2010 annual report and proxy statement season. Like the MD&A in a company’s 10K, the SEC is now requiring companies to furnish full disclosure on a range of practices including its compensation policies and practices, the experience, skills and background of its directors, and how the nominating committee of the board considers diversity in director nominations.
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Relieving the burden of earnings annoucement |
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In today’s volatile markets it is essential, more than ever, to keep the communication line open with the investment community. Many companies are overwhelmed with everyday challenges and some feel like it just isn’t worth the effort. This oversight carries a heavy cost for the company and the valuation of its stock price.
It is in difficult times that investors need to hear a company’s strategy and outlook. They need to understand how management is dealing with the current economic challenges and how the company will manage its growth as markets regain stability.
The investor relations activity is the vehicle through which relationships are established and communication remains open. Some CFOs try to go it alone and run the company at the same time. Here is a common scenario at the end of the quarter: the books get closed, the 10Q is in order, earnings are to be released the following day, its 7:00 pm and now we turn to the earnings release. Put in a few numbers, put some quotes in from the CEO and whoever else may be relevant and publish the next morning. Oh yes, now the conference call: repeat the press release and try to dodge tricky questions and remember what you said when analysts call back the next day to verify their models. What about the investor presentation? Well, there just wasn’t enough time, will do that next quarter. Oh and by the way, the stock price declines and shareholder reaction did not meet the expectations of management who hoped that investors would understand the story.
A different scenario is possible and can be efficient as well as cost effective. With an investor relations program in place, the earnings release can be prepared alongside the 10Q, conference call scripts can be written, investor presentations prepared, a Q&A of tough questions thought out and the CEO and CFO have the time and assistance to develop a “real message”. The earnings announcement goes smoothly and the stock price achieves a fair valuation based on a coherent and consistent message.
Nvestcom can bring this service to you on a quarterly basis in a cost effective way – Contact us for more details.
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The Matrix Reloaded
