Posts Tagged ‘investor relations strategy’

Investor Relations Agency – IR Consultants – Beware Of Pump And Dump Vampires

Saturday, July 17th, 2010

If you are in need of investor relations solutions and have been surfing the web for an IR firm approach with absolute caution as pump and dump vampires lurk around every corner and crevice of cyberspace. They’ll suck the life out of your new or struggling public company so fast your head will spin.

The first sign of a pump and dump artist is their forceful sales approach. They will act like your best friend offering all kinds of advice. You’ll start to feel that this rapport is genuine and you’ll ask them for their opinion on a competing IR firm. They’ll act like their doing you a favor when they take out their phone and make a call to their contacts guy to do some quick research to help you out.

Whether they got through to they’re guy or not they’ll come back with an answer like, “he just said to be careful with that one”. You’re relieved because your new buddy just kept you from making a big mistake but he sees it as assuming the sale.

Pump and dump vampires will expect to be placed on the S1 with their free trading shares in tact even before you’ve closed the deal with a contract and in most cases they’ve never actually revealed their IR strategy that is supposed to create the market for your new public company or turnaround the public perception of your struggling public entity.

You’ll ask them for specifics and they’ll beat around the bush, never giving a straight answer. The contract will be a boilerplate template that does nothing but secure their shares in your company.

Keep in mind, the P & D Vampire will be personable. They will be that breath of fresh air that seems to bring order to the otherwise chaotic process of the public process. You’ll be soothed to sleep at night as you recollect the days conversation with your new buddy and how his process is going to miraculously take your .05 cent share price to $1.85 in 30 days.

But after the contracts are signed, the equity is legally distributed and the process is supposed to begin, your new friend will be hard to reach on the phone and when you get them on the phone they’ll say things like, “I never agreed to this…” or “it’s going to take time” or “just be patient” and then when they are just about to lower the hammer they’ll begin to put the failure of the campaign on you by saying things like, “your company needs to announce an acquisition” (even though your company is only 30 days into its public existence) or “you need to restructure your management and we’ll put out press releases about it” on and on.

Be careful out there. Your best bet for real and absolute Investor Relations strategies is to go back to the consultant that helped you facilitate the structuring and going public process. If you didn’t have a consultant take you through the process, most likely, that is your problem right there.

You can’t possibly navigate your way through this turbulent industry of con artists and legal red tape on your own. Find a professional that can bring in his contact base and strategic relationships so that you don’t lose time, money and eventually your company.

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Investor Relations Strategy – Investor Relations Consultant – A Must Read

Tuesday, July 13th, 2010

I recently wasted three months getting to know an investor relations contact as it takes a few months before you’re ready to give up equity in someone else’s company to a stranger for services to be rendered in the future. The process is to first talk on the phone to the IR consultant and make nice talk. At this time you want to just let them talk because 90% of what they say is complete BS and 10% of it is what they wish they could do but up until now have never been able to.

I spent hours talking to this guy. He sounded so convincing, sure he’d dodge the questions about process and ‘how to’ but I figured we’d eventually get to that. We eventually met in New York, at our first meeting he picked the restaurant, he ordered lunch, I bought.

He was so smooth with his tactics and his con was so polished. He was an older gentleman with a very specific and well manicured professional pedigree, pure fiction of course but I found myself wanting to believe that this guy was telling the truth.

He told me how much he loved the company I was taking public and how he believed in what we were doing and how the company’s expansion was going to make such a great story post public to attract investors and create the market on and on. This banter went on for about two months and then as we were getting closer to our opening dated I started to press him for a process to bring together everything that he had been telling me.

I wanted him to show me a track record with trading symbols, only the ones that he mentioned to me that went from .10 cents to $1+ (I should have bailed at that point but I was still curious). I wanted him to break down how he was going to create the market for this company, I just wanted details. A few days had passed and obviously up to that point there had been no exchange of contracts since there was no process to agree to or anything professional from him to solidify the deal only words.

Then our S1 went up and he got an Edgar link. He was furious that he wasn’t on that S1. I got an email from his partner who I didn’t even know existed giving me the digital version of a tongue lashing, all caps, exclamation marks, bold print, you get the idea.

This was when I realized that no matter how objective I was and no matter how many angles I looked at this guy and his company and no matter how badly I wanted to believe that this was the one legit guy in a sea of razor blades and shark infestation that we call Investor Relations it was all just smoke and mirrors. He was a con artist, a confidence man.

I am by no means a new comer. I’ve been submerged in every aspect of this industry for over 12 years and I assist global corporations on the intricacies of going public, staying public and globalizing their strategies but sometimes we believe that we can meet someone that will shatter the prototypical mold of the realities we face every day. Investor relations is the one aspect of the industry that demands you to watch your back.

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Take My Company Public – Taking Your Business Public – Enough Goofing Around

Tuesday, July 13th, 2010

When it’s the right time to go public and you’ve looked at the pros and cons from all angles, it’s time to move forward and structure the company so that you can have a corporation worthy of investment dollars. First look at your company structure.

Do you have a well pedigreed and economically seasoned CEO, CFO and COO? Is your board of directors composed of the best of the best that your industry has to offer? Do you have a secondary board of advisors to pick up the slack where needed? Do you have strategic alliances in place to make expansion easier via distribution access, cross promotion and other necessary processes that you’ll need in a post public setting?

What mechanism will you use to distribute shares for your pre public raise? Is your business plan a powerful, ultra effective strategy or is it a boilerplate template that every funding source has seen a dozen times before?

Next, have you brought on a consultant to analyze your company and check for leaks, perform a valuation and start the process of going public? Don’t be shortsighted by trying to do this on your own or listening to the wrong people. Unless you have a professional onboard to navigate you through the process of preparing and completing the going public process you’ll be doomed from the start.

Don’t look at getting a trading symbol from FINRA as the finish line as this is just the beginning of the battle. You need a presents now more than ever. Your consultant will help you identify PR and expansion worthy mergers and acquisitions while simultaneously strategizing with investor relations agencies for the most impact at the best price.

Going public and achieving a symbol is the beginning of a whole new set of opportunities to grow your company in ways that you could never have imagined but it’s also a massive responsibility that can sink your company faster than quicksand. Be prepared for the process. Hire a consultant and place the best people in positions around you and you’ll be able to move forward with the wind at your back.

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Investor Relations Consultant – Investor Relations – Investor Relations Strategy

Thursday, July 8th, 2010

I am constantly getting calls from CEOs of public companies whose stock has plummeted to the point of no rebound. When I ask them what promotional or investor relations strategies they have in place to support their per share price goal, there is always silence on the other end of the line. It’s shocking to me that a well pedigreed executive can move up through the corporate ranks from executive to VP and to CEO and not have a clue as to how to run a public company properly.

For executives reading this, you obviously are doing the necessary due diligence required to initiate a strategic plan and keep your volume trading. As a global strategies consultant, typically, by default, I have to take a company public in order for them to meet their growth requirements as designated by their board of directors.

If you are going public on the OTCBB (Over The Counter Bulletin Boards) for example, you’ll want to start general corporate branding pretty heavy when the S1 comments stage is completed. You’ll want to take advantage of viral media such as but not limited to: video, unique article submission, press releases, social and news bookmarking and don’t forget the Linkedin, Myspace, Facebook and Twitter. The collective combination of promotional genres in the above will give you the initial foundation to start your Investor Relations campaign post public.

Keep in mind you want to promote your company in a general fashion as opposed to stepping into a gray area which the SEC would consider outside of securities compliance. Next, about two weeks after your viral crusade has been initiated, phase two would be using traditional tactics for publicity, mainly TV, radio and inter industry periodicals. These promotional mediums should ring with the ‘expert’ theme. You’ll have your publicist solicit the editor, writer, journalist, etc and get you a seat on an expert panel to discuss the hot topics that have to do with your industry. It’s not a company advertisement, it’s better. You are demonstrating your high level of expertise and throughout the gig they are referring to you in name and as the CEO of XYZ Inc.

Now, after your market maker has filed form 211 and FINRA has issued a trading symbol, this is when the real work begins. Don’t hire an investor relations service, hire a full service IR strategies consultant. It may sound like the same thing but believe me, the difference is night and day. A strategist has a massive portfolio of contacts to create your market quick and get your stock trading. You don’t want pump and dump, email/newsletter promoters, if you hire one then you’re a chump and you deserve the failure that you’re sure to experience. You’ll be sucked into the black hole of no return faster than you can say pink sheets (By the way, if you’re going public don’t even waste your time with pink sheets. Serious investors will never buy and hold that Wild West stock).

The basic strategy your consultant will put in place will be a combination of phone room promotion to market makers and investors to announce your stock and give verbal presentations in a non pushy manner (with a phone room you just want to have a friendly voice that gives free information and then tell them to check out the stock and call their broker or you can introduce them to one but don’t hire a boiler room as that’s the kiss of death to any new public entity). Next you want to email announcements to your pre public investor base and industry insiders to get the hype machine going. Get people talking about your stock, potential acquisitions, your new product or service, a new strategic partner you’ve signed with, a new distribution channel, anything, just get them talking about you. You’ll also want to keep your viral and traditional publicity mechanisms in place. Write press releases announcing the above and have your consultant and/or publicist start pushing them to major journals, newspapers and high traffic blogs and websites and always make yourself available for comments and/or questions. With all of your promotional properties you must get in the habit of collecting email addresses and contact info and on a weekly basis a chunk of your advertising budget must go toward snail-mail post card promotion, phone call meet and greets and email updates.

The above is a very basic intro or Investor Relations 101 to help you start putting a strategy together or at the very least it will help you interview investor relations strategies consultants in an intelligent and informed manner.

FREE Download of the Ground Breaking eBook Taking A Company Public, to find out how to take our company public, structure a company, globalize your concept and much more. Click here to get Free Pre IPO Investor Alerts

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