The Link Between Good Investor Relations and Stock Price | CFO.com
Get on the road and talk to investors. IR is a sales game, which means the more people you call on, the more sales you will make. Don’t just go to a few conferences; go to every one you possibly can. Even go to the conferences featuring the analysts you don’t like. Do lots of road trips with your analysts to call directly on investors. Just as a personal example, in the first half of 2016, I did 300 one-on-one meetings with investors and addressed 800 people in group presentations, which helped pull our stock back up by a third.
Revitalize your investor story. Every year during the December slowdown, I like to sit back and make a fresh assessment of the investor deck. Sometimes I just start with a stack of blank sheets and scribble out how we’re best telling the story at that point, and then compare that to the actual deck we’ve been using.
Look at your deck with a critical eye. Does it inspire? Does it do a good job of painting the opportunities your company is pursuing? Does it adequately explain your strategy? Are the proof points strong? Do you have a strong opening “hook”? If this were your IPO deck, would it sell?
The only one of those questions that may not be obvious is the “hook,” so let me elaborate. When you’re giving a speech, it’s best to (verbally) slap the audience across the face to get them to put down their phones and start paying attention. Sometimes I like to ask a show-of-hands question. When I was at Fitbit, I asked how many people in the room had an Apple watch.
Sometimes I have a killer statistic that wakes people from their lethargy. For example, at one company, I did some research and found that the problem the company solved, hospital communications errors, was the number-three killer in the United States after cancer and heart disease. Leading with that got people’s attention.
Note that none of these suggestions are that difficult or expensive. If your stock is undervalued, my hypothesis is that most of the time it doesn’t have to be. Take some of these concrete steps to up your game with Wall Street and be worth what you should be.
Brad Samson is a 20-year investor relations executive, most recently the head of IR at Fitbit. He’s currently providing strategic counsel to several early-stage companies.