WESTPORT, Conn. – July 16, 2007 – Pointing out the clear value of effective communication, a new study by Rivel Research Group indicates that investor relations – done well or not so well – may account for as much as a 25 percent variance in a company’s stock price.

As part of its ongoing series of national studies among key investment community constituencies, Rivel Research recently conducted in-depth interviews with a representative, random sample of 243 buy-side investment professionals from some of the nation’s leading mutual funds, pension funds and insurance firms.

According to the survey, fully 82 percent of respondents believe that good investor relations affect a company’s valuation.  Moreover, the actual impact on the stock price is often judged to be material:

• A median premium of 10 percent is associated with “superb” investor relations
• A median discount of 15 percent is associated with “poor” IR

“As in no previous study completed by Rivel Research, this study serves notice that the environment is ripe for investor communications to exert profound influence over the investment appeal of publicly traded companies among U.S. buy-side analysts and investors,” said Brian Rivel, president.  “Rarely has it been so abundantly clear that unique, carefully crafted and targeted messages stand to help analysts and investors differentiate companies amongst a world of conflicting, competing and often highly similar investment opportunities.”

The survey also revealed that articles in general business and trade publications – often a product of effective IR programs – rank second only to in-house research in their value to buy-side professionals seeking to identify equity investment opportunities.  Eighty-three percent of respondents said companies come to their attention through the media, up eight percentage points from a 2005 Rivel study of this audience.

Among other findings of Rivel’s latest study:

• Investor relations officers are playing an increasingly important role in providing useful intelligence that influences investment decisions.  More than two-thirds of respondents -- 69 percent, compared with 47 percent in the previous survey – identified IR as a key resource to supplement in-house research, SEC filings, quarterly earnings conference calls, meetings with senior corporate executives and other sources of information.
• The influence of brokerage house research is largely seen as waning.  Thirty-six percent of those surveyed said the impact of sell-side research has declined in recent years – nearly three times the 13 percent who believe it has increased.
• Management  credibility (77 percent) and effective business strategy (74 percent) remain the leading evaluative factors for buy-side investors, outweighing such considerations as growth in earnings per share (69 percent), reliable cash flow (60 percent) and a strong balance sheet (60 percent).

Robert G. Berick, managing director of Dix & Eaton, a communications consulting firm that collaborates with Rivel Research, observed,  “Rivel Research’s findings confirm our strong belief that companies that treat investor relations as merely a compliance function are short-changing their investors.  Clearly, effective communication plays a significant role in shaping decisions about whether to invest in a company, whether to maintain or add to that investment, and whether to refer others to or away from a particular investment.”

Copies of the Rivel Research study are available by contacting Brian Rivel at the number shown above.

About Rivel Research Group

Founded in 1991, Rivel Research Group is the only firm that specializes in delivering marketing research solutions through in-depth measurements of the investment community.  The firm’s highly experienced staff provides the well-informed, unbiased and strategically relevant intelligence companies need to understand their investment appeal and effectively communicate with such key constituencies as sell-side analysts, buy-side analysts, portfolio managers, investor relations officers and the financial media.  The comprehensive information that Rivel supplies guides companies in evaluating performance, formulating strategy and identifying opportunities.

About Dix & Eaton

Communication has the power to significantly improve performance, and Dix & Eaton partners with client management to harness that power.  We specialize in building stronger stakeholder relationships through investor relations, media relations, marketing communications and employee communications. We also help organizations manage special situations with practices focused on crisis management and transaction communications. Founded in 1952, Dix & Eaton is the largest employee-owned PR and IR firm in the United States.  For more information, visit www.dix-eaton.com.

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