The public company graveyard is filled with companies that were long on ideas yet short on liquidity. Liquidity is everything.
In order to optimize the public company “experience”, companies must turn investor interest into market activity. Its investors buying your stock that unlocks unrealized value that comes from liquidity growth and as a result, your company will be better positioned to accelerate business growth and your market capitalization will be free to rise.
Investors don’t want to be a member of a small group of people understanding the investment merits of the company. Investors want an atmosphere where the investor base is growing.
Without a growing and sustainable investor marketing strategy, the investor base necessary to support a market for the shares of your company cannot exist. Low liquidity will cause your market capitalization to stagnate, business growth to suffer and you will be faced with a company whose stock has no true growth potential.
Understanding who to approach with an opportunity when trying to expand awareness is key. Once the Information-Infrastructure is put in place, a bottom-up approach must be taken when reaching out to the investment community. That means starting with the retail investor. Retail investors are t most qualified, high impact investors are those that can and will actually take a position. Often, companies spin their wheels because they are not approaching the appropriate demographic. It is more important to reach investors already predisposed to investing in the company vs. those that are less likely.
Investors need information to make decisions and emotions to take action. We provide both by creating high impact content that meets the information demands of the investment community. All content provided must create an investment atmosphere conducive to decision making.
The frequency of information plays a critical role in creating confidence in the company. Companies with stronger newsflow and an open and transparent communication strategy do better in the market. Investors want to feel like their decisions are being supported by the company and their liquidity risk is being addressed.
If you need help with your liquidity and investor awareness, request a free investor marketing assessment: contact us today.