November 14, 2008
Walking the Talk
I think there may be something really wrong with me because I am enjoying the irony of this piece by Anna Snider WAY too much!
Posted by Rob Berick on November 14, 2008 | Permalink | Comments (0)
November 11, 2008
Karma
... continues to be a b#tch!
Check out the latest on hedge funds from Fierce Finance.
Posted by Rob Berick on November 11, 2008 | Permalink | Comments (0)
October 28, 2008
The Dumbest Person Alive
Read this quote in today's release from NIRI regarding its biennial annual report study:
"The decision to forego an annual report was based on management's cost-benefit analysis. We used a great AR design firm in the past to create and produce ARs that made sense in helping us 'tell our story' during our first seven years as a publicly traded company... Eight years later, we have 12 sell-side analysts covering the company and a pretty decent buy-side following. So, management decided that we no longer need to spend time or money to present a nice AR to help tell our story. Management nonetheless reevaluates this decision each year. We may go to a fact sheet." (Information Technology IRO)
Is it me or is this the dumbest person alive?!!?
Does he/she really think letting the 12 sell-side analysts tell the story makes a lick of sense? Does he/she really think it's okay to become less transparent? Does he/she really believe it will help improve the "decent buy-side following" by eliminating the annual report (this just in - the annual report continues to be cited in study after study as one of the more influential data sources in the investment decision-making process)? Does he/she really let management do its own cost analysis? Does he/she have no say in how the budget ought to be allocated?
UGH! It is no wonder we continue to need seminars for IROs on "How to Get a Seat at the Table." My friends, our profession took a mighty step backwards today.
Posted by Rob Berick on October 28, 2008 | Permalink | Comments (0)
October 20, 2008
Just so you know, it's all b/s
I don't know about you, but I've been having LOTS of conversations about how to handle earnings releases given all the turbulence in the market (from "Should we pre-release?" to "How should we handle guidance?" to "How much macro-economic information should we include?").
At the end of the day, I keep coming back to two points:
1. It's even more important now to be transparent - on the macro/micro factors influencing results, on the assumptions in your outlook, etc. Since the numbers can't "speak for themselves" in good markets, you can't expect them to do more than mumble in today's down market.
2. Right now, it's all b/s - so talk to your investors as if they are debt holders (e.g., give them insight into your credit facility, give them an appreciation for your free cash from operations, re-assure them of the health of your banking syndicate, etc.) While it may be nice to tell a growth story, it's even better to hear about a strong balance sheet!
Posted by Rob Berick on October 20, 2008 | Permalink | Comments (0)
October 06, 2008
Why do we hate annual reports?
It's that time of year again... baseball playoffs, homecoming dances, pre-Christmas sales and, last but not least, the annual debate on annual reports.
Man, if I had a nickel every time a corporate executive has asked me - "With all the information on our Web site, do we really need to do an annual report this year?" - someone else would be writing this blog.
Let's ignore the misguided comment regarding the Web site for a moment as both you and I know how laughable most corporate Web sites are still today.
With all the research available on how important annual reports are to U.S. and European institutional investors - as well as to the retail market - I have to ask: why do we (and when I say "we", I mean "you") hate annual reports?
Yes, for some companies, they can be time consuming projects that stir conflicting internal agendas. But for most companies, this is the only "marketing" piece the corporate center does all year - so it should take a little time and some hallway negotiating.
I think it comes down to cost - both in terms of dollars and staff hours. And I have to agree, as someone who reviews A LOT of annual reports, most companies are not getting much out of their investment.
For example, I just looked at an annual report from an insurance company... beautifully produced piece by an outside design firm... the theme is "Focused" (phew - I was afraid the company was unfocused!) and it is brought to life through the cover image of the reader being put in the driver seat of a car going more than 120mph down a busy highway (Huh... I had no idea this company was focused on reckless driving... no wonder my premium is so high - I'm not getting in enough accidents!).
To make matters worse, on page seven of the report, there is a fold-out page (or "gate fold") that doesn't open due to a production blunder... what a lethal combination - high-price concept and low production value.
Jeez - with winners like this - I can't imagine why people aren't more ecstatic with the ROI of the "annual" budgets!??!
Posted by Rob Berick on October 06, 2008 | Permalink | Comments (0)
September 25, 2008
Courting Individual Investors
I had an interesting exchange with a CEO of a public company about corporate branding.
I mentioned to him that we (Dix & Eaton) had just completed a study with Zogby International on retail shareholders. Among other things, the study found that "brand experience" had a major influence on the buy/sell/hold decisions being made by this segment of the investment community (higher, in fact, than media coverage).
The CEO scoffed, "I don't care about the retail market... don't even go there. At most, they have $100,000 that they can invest in any one stock..."
Fortunately, I was able to bite my tongue before I said, "Hmmm... at the level your stock has been trading for the past few years, $100K would buy a healthy percentage of your shares outstanding. Maybe we should 'go there'."
It got me thinking, though... why is there such an aversion to courting the individual investor?
Posted by Rob Berick on September 25, 2008 | Permalink | Comments (0)
September 22, 2008
The Lesson from Last Week
Of all the things said and written about the history made on Wall Street last week, this quote from Peggy Noonan really hit home for me - "It isn't just bad news, it's bad news that reveals what many people deep down feared, and hoped not to see revealed: that the huge and sprawling financial system of Wall Street is maintained essentially on faith, mood and assumptions..."
If there is a better argument for why IR cannot be treated as merely a compliance function, I do not know what it is.
Posted by Rob Berick on September 22, 2008 | Permalink | Comments (0)
September 18, 2008
What The... ?!!?
My five-year son, William, has a new favorite expression. He loves to yell (because the child does nothing quietly) "What the...??!!!?" some several hundred times a day. I think he picked it up from his older brother who learned it on the playground of his elementary school. If this is the worst peer-influenced behavior either of my babies picks up, I'll claim victory as a father and, perhaps, consider writing a series of books on parenting.
What does this have to do with investor relations, the capital markets, corporate governance or any other topic addressed in this blog? Well, as Lehman, Merrill, AIG and others continue to fall in front of this crazy train we call the capital markets... what else is there to say but "What the...?!!?"
Posted by Rob Berick on September 18, 2008 | Permalink | Comments (0)
August 22, 2008
Climate Changing for Climate-Change Proposals
Very interesting piece from the AP... looks like things are "heating up" on the climate-change proposal front.
According to the AP, "Shareholder resolutions related to climate change more than doubled over the past five years, according to statistics gathered by a coalition of public interest groups, environmental organizations and pension funds. Moreover, the coalition, Boston-based Ceres, says support for those measures averaged more than 23 percent in 2008, a new high."
What I find most interesting about this is that the investor studies I have seen of late do not reflect a similarly intensifying premium on sustainable practices when evaluating a company's value proposition. Perhaps these proposals are more for public relations than investor relations...
Posted by Rob Berick on August 22, 2008 | Permalink | Comments (0)
July 21, 2008
A real kick in the shorts
So... let me get this straight... the SEC has determined that the "shorts" are the root of all economic evil.
Interesting... can't wait to hear what they come up with next! (Perhaps they'll take a hard look at those who invest long. I can't be the only one who can name three stocks whose valuation are WAY out of whack due to the reverse phenomenon.)
I think I've seen this movie before, only the star was carbs instead of shorts... one week they are to be avoided at all costs, the next week life without them is unthinkable.
Better get your popcorn... we could be in for quite a show.
Posted by Rob Berick on July 21, 2008 | Permalink | Comments (0)
