Short Sellers & Activists

 Companies can effectively deal with short sellers by implementing a proactive and strategic approach:

Analyze and monitor short-selling activities:

• Track key metrics such as short interest and changes in the shareholder base
• Monitor social media platforms, investment message boards, and research firms focused on short recommendations.

Maintain open communication:

• Engage regularly with the existing investor base to understand any bearish sentiments.
• Have open and regular communication with short sellers to understand their motivations without becoming defensive.

Provide transparent and complete disclosure:

• Fully disclose all aspects of bad news, headwinds, and setbacks at once
• Refute any misinformation surrounding the company and its business

Develop a robust communication strategy:

• Articulate short- and long-term strategic plans
• Highlight progress toward goals through steady, coordinated news flow and disclosure

Conduct risk and vulnerability assessments:

• Identify potential attack vectors for short activists
• Track industry and market trends to ensure management has an accurate understanding of the current landscape

If faced with a short attack:

1. Respond promptly with detailed evidence to rebut accusations point by point
2. Execute a rapid investor outreach program
3. Consider financial responses such as share buybacks or increased dividends, but be aware of potential risks
4. Avoid personal attacks or aggressive language toward the short seller
5. Assess the attack's credibility and calibrate the response accordingly

By adopting these strategies, companies can strengthen their resilience against short attacks and maintain investor confidence. 

1. There is likely a large vulnerability in the business strategy or a large price/value gap. 
2. Maintain board unity: Ensure a unified board consensus on key strategic issues to prevent activists from driving wedges between board members and management.
3. Prepare the board: Educate directors on the current activist environment and company's preparation. Schedule periodic presentations by legal counsel and investment bankers. Be sure to understand what the activist sees as the opportunity and formulate a plan from the current board to close this gap. 
4. Monitor shareholder activity: Keep track of stock ownership changes, conference call participants, and transcript downloads to identify potential activist interest early.
5. Strengthen investor relations: Maintain regular communication with major shareholders, understand their voting policies, and know key decision-makers.
6. Assess vulnerabilities: Evaluate company performance, strategy, and governance to identify potential activist targets. Consider preemptive actions to address weaknesses.
7. Develop a rapid response team: Assemble a team of internal executives, legal counsel, investment bankers, and PR professionals to quickly address activist approaches.
8. Create a communication strategy: Prepare for various scenarios, including public and private engagement with the activist. Establish protocols for board members to refer inquiries to designated spokespersons
9. Consider preemptive actions: Evaluate potential disclosures, commitments, or business actions that could undercut activist arguments
10. Engage strategically: Determine whether and when to negotiate with the activist. Failure to engage may be viewed negatively by institutional investors
11. Implement long-term value creation: Focus on executing a clear, long-term strategy that creates sustainable shareholder value, making the company less vulnerable to short-term activist demands. 

Public relations is essential for any business to maintain a positive image, manage reputation, and build relationships with various stakeholders including customers, employees, investors, and the media. It helps to create a positive narrative around your brand and communicate your message to the right audience.

At Oddsmaker Investor Relations, we use a combination of key performance indicators (KPIs) to measure the success of your public relations campaign. This includes media coverage, social media engagement, website traffic, lead generation, and more. We will provide you with regular reports that track your progress and help you make data-driven decisions for your business.