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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 –  This e-mail address is being protected from spambots. You need JavaScript enabled to view it