We said “Strategic Investor Relations Programs”, NOT just your average penny stock promotion or micro cap investor relations road show.
Regardless of whether you sell bottles of water or potato chips, if you are a small cap company, micro cap company, penny stock or over the counter traded corporation; you can benefit from a strategic micro cap investor relations program. Ok, we are a bit bias since we provide public companies with investor relations solutions, but here are 5 ways a targeted investor relations program can help your stock and sales!
PROMOTE THE PRODUCT, NOT THE STOCK!
After 2 years in traditional Investor Relations positions, I started The Cervitude Network because too many penny stock promoters and “micro cap/otc investor relations agencies” where promoting stock tickers instead of the actual companies. Blog articles would highlight movements in stock rather than tell consumers where to get the product. News Releases would showcase earnings (usually losses) from the company rather than profile key executives who were innovating solutions. Most in the industry said “That is what the investor wants to know, that is what they are looking for.” I hardheartedly disagree. #1) The smart investor or accredited investor (usually the party a smaller publicly traded company is targeting) is not reading a blog or press release for information, they are looking straight at S.E.C. filings #2) Big money investors want to see your business model in action, not a story about numbers that usually do not add up anyway.
Public companies spend massive amounts on investor relations programs to make their stock noticed to the investing public and create liquidity. True liquidity comes with a massive number of retail investors, not institutional investors (whom, in the micro cap sector, are generally only there for a short term return) and attracting retail investors involves more of putting the product in the investors face. In short, as long as you are attempting to attract investment, you should be marketing you product to attain more sales.
If a consumer product is available online for sale, then your investor relations program should be sending traffic to the website to generate sales, not just blasting your stock information. If you have a position opening at your company, your investor relations agent should also promote this. These are two examples of how to get a double whammy! You are telling potential investors, “We are focused on sales” and “We are growing”….without saying it.
I heard an industry veteran in Micro Cap Land call OTC traded and smaller traded companies; Story Stocks. He was correctly implying that although there may not be huge earnings to report, there is a story…and if the investor buys the story, they buy the stock. Which story are you telling?? Are you saying to the investing world “Hey look at us trade!” or are you saying “Look at our business, and by the way, we are publicly traded.”
The Cervitude Network