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Posts by Patrick Gallagher

Five reasons why tax reform still looks like a shaky bet

Six weeks ago I wrote here that investors and corporations should not count on Congress passing tax reform legislation this year. Now that the GOP’s “Big Six” has released a somewhat more detailed framework, do the chances look any better? Here are five reasons why the ambitious plan is still a long shot:

  1. Too Many Democrats. People like to say that no one knows what the Democratic Party stands for. One thing it definitely stands against is big tax cuts for the rich. In August, all but three of the 48 Senate Democrats signed a letter rejecting deficit-financed tax cuts for corporations and the wealthy. The leading message from the Big Six is that the tax plan would provide no benefit for the rich.  But pretty much everyone else acknowledges that the nation’s…
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Trump, GOP love tax cuts, but this isn’t 1986

If you are hoping tax reform legislation will salvage the Trump administration’s agenda and support another stock market run-up, don’t count on it. Amidst internal dissension and growing concern that now is not the time for tax cuts, the administration and congressional Republicans are struggling to shape a bill that can garner enough votes—and the president’s approval.

After the failure to repeal Obamacare, Republicans see tax reform as the only route to a major legislative victory this year. Cutting taxes, after all, is what Republicans believe they do best. But this could end up like the failed repeal all over again—patching pieces together to find something that will pass that doesn’t really address the underlying problems.

As CNBC commentator Ron Insana wrote…

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Is your most important IR content underperforming?

We are involved in a lot of investor presentations here at Dix & Eaton. We may be building the first one for an IPO company, undertaking a refinement of a company’s investible story and the presentation of that information, or helping to prepare for a major event or transaction. We also look at a lot of non-client presentations just to see the variety of story-telling and style.  

For most public companies, the investor presentation is probably the most important single piece of information on the IR website. According to the Cision/PR Newswire Shareholder Confidence 365 survey, “PowerPoint-based investor presentations are the top content hunted by Wall Street.” 

The problem is that the vast majority of these documents are a compromise. They are created as…

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3 easy ways to improve investor engagement on your IR website

It seems safe to say any investor relations professional would agree that the purpose of the investor relations website is to tell the company story and provide user-friendly, one-stop access to essential investor information.

You want your IR website to be the first place where a prospective investor goes to better understand the company and its value proposition.

In reality, however, many IR departments fall short of these aspirations due to a risk-avoidance mindset and miss opportunities to provide important content in more useful and compelling formats.

As corporate video producer Vern Oakley of New Jersey-based Tribe Pictures told IR Magazine, “In a regulated field like IR, people are waiting for someone to lead, to test what can or can’t be done. It’s a…

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4 things you thought you knew about Seeking Alpha that are wrong

The U.S. Securities and Exchange Commission brought a slew of enforcement cases last week against three penny-stock biotech companies and several stock promotion firms and their hired writers for publishing hundreds of fraudulent stock-touting articles between 2011 and 2014. The articles appeared on numerous investment news sites, most prominently on Seeking Alpha, the popular crowd-sourcing investment platform.

The SEC investigation uncovered multiple “pump and dump” schemes that “left investors with the impression they were reading independent, unbiased analyses on investing websites while writers were being secretly compensated for touting company stocks.”

For the biotech CEOs ordering up the fake stories, “…stock promotion, not drug development, was priority…

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