the five biggest mistakes public companies make in ir- and how to fix them
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© 2011 Stockhouse Publishing Inc.
Presented by: Marcus New, President
The Five Biggest
Mistakes Public
Companies Make in IR
- and How to Fix Them
© 2011 Stockhouse Publishing Ltd.
Who Is Stockhouse?
#1 Financial User Community in Canada
One of North America’s largest small cap investor communities
North America’s largest natural resource site
730,000+ Unique Users, 4+ million user sessions and 40+ million page views per month
© 2011 Stockhouse Publishing Ltd.
Why Are We Qualified To Speak?
Experienced –16 years working with issuers
Own and operate Stockhouse one of North America’s largest small cap investor communities
We are Experts• Worked with 800+ public companies• Written for Investor Relations Magazine• Interviewed on Fox Business, CNBC, ROBtv and more than 40 other media appearances
• Work with 60 Analysts & Newsletter writers monthly
© 2011 Stockhouse Publishing Ltd.
The Five Biggest Mistakes
Public Companies Make in IR
- and How to Fix Them
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Discussion Today
© 2011 Stockhouse Publishing Ltd.
Question?
With more than 12,000 smaller capitalized companies in North
America and 2300 natural resource companies in Canada, what are you doing to get noticed and stand out?
© 2011 Stockhouse Publishing Ltd.
The Whole Story
BusinessManagement
Execution
& Assets
Corporate Struc-ture & Capital Raising
IR & Rela-tionships
Capital Market Communications& Expertise
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© 2011 Stockhouse Publishing Ltd.
Mistake #1
Failure to plan
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© 2011 Stockhouse Publishing Ltd.
Mistake #1 – Failure to plan
Consequences
Wasted resources
Lack of direction and focus
Inability to attract financing
Poor share price
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© 2011 Stockhouse Publishing Ltd.
Mistake #1 – Failure to plan
Solution
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Action Plan Key Milestones IR Activities
2011 2012Campaign Items Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarKey Milestones Drilling Results Finance Acquisitions DrillingIR ActivitiesBusiness Plan MessagingAd campaign
What If Scenarios??
© 2011 Stockhouse Publishing Ltd.
Mistake #2
Failure to form a strong message
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© 2011 Stockhouse Publishing Ltd.
Mistake #2 – Failure to form a strong message
Consequences
Investors don’t get your story
Mixed message – different people say different things
Market is confused with your value proposition
Don’t stand out from other companies11
© 2011 Stockhouse Publishing Ltd.
Mistake #2 – Failure to form a strong message
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Solutions
Spend the time to get it right
Find out why people like your company
Make sure it’s well written
© 2011 Stockhouse Publishing Ltd.
Mistake #2 – Failure to form a strong message
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Instead of Experienced Management Team
- Former CEO of Inco Chairman of board
- Mr. Z’s last company sold for $450 MM
Instead of Large Land Package
- Land package half the size of Switzerland
Instead of Low Cost Exploration
- $1 million dollars of exploration in Argentina is equivalent to $10 million in Athabasca
© 2011 Stockhouse Publishing Ltd.
Mistake #3
Failing to target your audience
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© 2011 Stockhouse Publishing Ltd.
Mistake #3 – Failing to target your audience
Consequences
Ineffective results
Complete waste of money
Wasting your time
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© 2011 Stockhouse Publishing Ltd.
Mistake #3 – Failing to target your audience
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Solutions
Know who can buy your stock – retail / brokers / buy side / sell side
Identify & target risk orientated market participants
Ability to trade stocks on the Canadian exchanges
© 2011 Stockhouse Publishing Ltd.
Mistake #3 – Failing to target your audience
Watch Out For Phony Traffic - www.alexa.com
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© 2011 Stockhouse Publishing Ltd.
Mistake #4
Random acts of marketing
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© 2011 Stockhouse Publishing Ltd.
Mistake #4 – Random acts of marketing
Consequences
A lot of people see you only once
The investment community is smart – No one buys after seeing you once
You must tell your story 4-6 times
Waste of resources – time and money
Poor results19
© 2011 Stockhouse Publishing Ltd.
Mistake #4 – Random acts of marketing
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Solutions
Consolidate your resources around a couple of mediums only
Focus marketing around moments of highest potential impact
Manage your database with a professional strategy
Contact strategy to reach investor 4 – 6 times
© 2011 Stockhouse Publishing Ltd.
Mistake #5Failure to measure your marketing
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© 2011 Stockhouse Publishing Ltd.
Mistake #5 – Failure to measure your marketing
Consequences
Poor selection of vendors
Lack of understanding results
Wasting money
Can’t reinvest in success
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© 2011 Stockhouse Publishing Ltd.
Mistake #5 – Failure to measure your marketing
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Solutions
Only deal with vendors who can provide results/metrics
Have realistic expectations
© 2011 Stockhouse Publishing Ltd.
The Five Biggest Mistakes Public Companies
Make - and How to Fix Them
1. Failure to plan
2. Failure to form a strong message
3. Failure to target your audience
4. Random acts of marketing
5. Failure to measure your marketing
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© 2011 Stockhouse Publishing Ltd.
Everything Counts
Table stakes – you are being judged against your best competitors
Investors are intelligent, quality information is available 24/7/365
Small details can make a big difference
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© 2011 Stockhouse Publishing Ltd.
How Stockhouse can help you
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Prepare(Mistake #1 & 2)
Viral(Mistake #4)
Measure(Mistake #5) Target
(Mistake #3)
Momentum(Mistake #4)
Execute(Mistake #4)
© 2011 Stockhouse Publishing Ltd.
The Stockhouse Response
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1. Preparation Phase • Message research• Professional copy written summary • Develop multi message advertising units • Shoot, edit and produce 2 minute interview • Q&A interview• Project planning• Mid Campaign program results report
© 2011 Stockhouse Publishing Ltd.
The Stockhouse Response
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Action Plan
Campaign Items Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar
Advertising [ROS]
Ticker Targeted Advertising
Video Profile
Company Showcase
Social Media Services
Investor Marketplace
Roadblock (Bullboards/Blogs) 20-Jul 2 Roadblocks left to create awareness around big news
Stockhouse Alert 25-Aug 3 Alerts left to generate leads
News Blast 26-Jul 15-Sep 3 News Blasts remaining for press releases
8-Jul
Next Steps:I tem Due Launch
Ticker Targeted Ads ASAP ASAPRoadblock TBD TBDStockhouse News Blast TBD TBDStockhouse Alert TBD TBDLet us know a day of key importance
Provide press releases prior to releasing to the publicLet us know a day of key importanceELD and KMK are not getting enough traffic. Please provide more tickers to target.
Next Steps
Client
Responsibility
ClientClientClient
Campaign-Long Awareness T ime-Sensitive Awareness
2010 2011
© 2011 Stockhouse Publishing Ltd.
The Stockhouse Response
2. Target The Best Market Participants• Exclusive to Stockhouse - Target
Shareholders of other public companies
3. Execute Marketing Program• Focus on building your story a minimum
of 3-7 times• Use specialized marketing strategies for
lead generation
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© 2011 Stockhouse Publishing Ltd.
Investors Need To See You 6 Times
© 2011 Stockhouse Publishing Ltd.
The Stockhouse Response
4. Create Momentum• Instantly Disseminate Actionable News to
Members via email prior to market open• On day of news use SH Road Block –
deliver up to 2.5 million ads in one day
5. Engage Shareholders with Viral Strategy
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© 2011 Stockhouse Publishing Ltd.
Bullboard Road Block – Tell Everyone
© 2011 Stockhouse Publishing Ltd.
Stockhouse Has Viral Members Who Tell Others
Connecting with Stockhouse Members is unlike any other audience. Members are highly influential and can become viral ambassadors for companies.
© 2011 Stockhouse Publishing Ltd.
6. Measure
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Advertising (ROS)
Ticker Targeted Advertising
Road Block
SH News Blast
Company Showcase
Video Profile
Social Media
IMP / InvestorMarketPlace
SH Alerts
120 investors clicked through for more information120 leads generated
175 investors clicked Social Media Bullboard Link
Build The Database
480 investors visited InvestorMarketPlace profile since launch83 leads generated
1 Alert was deployed47,171 emails sent to investors
18 investors clicked through for more information6 leads generated
Engage New Community
7,754 investors viewed Company Showcase page since launch 23 investors clicked on the Featured Company Button
3,118 investors watched Video Profile
185,427 ads delivered to investors137 investors clicked through to your site
2,057,551 ads delivered to investors436 investors clicked through to your site
3 Press Releases were blasted out97,691 emails were sent to investors
Attract New Investors
601,270 ads delivered to investors240 investors clicked through to your site
© 2011 Stockhouse Publishing Ltd.
Stockhouse Delivers Results
Stockhouse is the largest Smallcap and Natural Resource community in Canada
A Stockhouse Campaign researches and builds your strongest story and key messages
Only Stockhouse can target specific shareholder bases
Only Stockhouse measures and provides action plans and management reports
Only Stockhouse is accountable for your IR $$
© 2011 Stockhouse Publishing Ltd.
Find Out How Stockhouse Can Help You
Email us at [email protected]
Phone us at 1.877.578.4349
Visit us at www.stockhouse.com – About Stockhouse