New Marketing | PWH GARRARD - Small/Micro Cap Marketing

Suppose your under-valued, under-performing illiquid stock could double in value, and the trading volume took off? Suddenly your 'white elephant' could look very interesting!

 

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Anyone who owns a sizable block of small or micro cap equity — or perhaps your company is publicly-traded — could have an important, if overlooked asset. Specifically …

 

Investment cash is already flowing back into the market, and 99% of small cap stock has never been marketed, and which is a HUGE missed opportunity. And as we've said previously on this site, stock is a product and should be treated as such.

 

A share of stock is like any other product — either it’s actively sold/marketed or it dies. But then what? And while IR people will point to nice-looking websites, online presentations and press releases, but so what? Either IR activity must move the market, or it’s all a waste of time.

 

With that in mind, here are some core truths that you’ll rarely hear from anyone in Investor Relations.

 

Every company needs a unique, fascinating ‘story’ around which all marketing is based. This makes the company real, credible, hopefully fascinating — enticing enough investors to think, “WOW!” You also want them to think they are discovering a new financial winner, rather than being on the receiving end of a sales pitch. (It’s like planting a trail of cheese to your trap.)

 

Like never before, great stories grab lots and LOTS of free distribution through blogs, online periodicals, social media, Linkedin, etc. — plus PR, of course. A few years ago, you had to pay for this kind of coverage, but no more. Just make sure your company appears credible, provocative, one-of-a-kind, sexy, a killer investment, then aim to go viral. (Aim high!)

 

Your story also needs to be told quickly and succinctly, in under a minute for word-of-mouth pass-along. That’s the ‘hook’ that stops a prospect, after which the serious selling/seduction begins. (Have you noticed something odd about IR websites? They’ll rarely mention something as crass as selling. A dirty word, perhaps?!!)

 

But what if a certain company is truly boring? Suppose it makes X, Y and Z that, together, would have little investor appeal. What to do? Try adding ‘W’ to the mix, something that’s high-profile, promotable and a ‘first-cousin’ to the existing product/service mix. But if the company doesn’t make W? No problem. W would be “in the pipeline,’ “under development,” etc. Switch the narrative towards this more marketable area. (Unconventional? Sure, and just another example of how we ‘think different.”’)

 

Every company needs a corporate ‘face,’ probably the CEO, because it’s easier for investors to relate to a person than some corporate entity. And if investors come to trust that person, then they’ll be far likelier to hang on to their shares for the medium-term — perhaps buy more shares.

 

Do you know how to pitch? If you’ve ever attended a Rodman & Renshaw show, you’ll know how inept most top executives are in trying to pitch their companies. (Especially when following a prepared speech!)

 

Patrick Garrard has prepared a simple, easy-to-follow template for effective communication: Get quick attention with your great story … clearly explain the uniqueness of the technology/product in easy-to-understand English… shows its need and revenue potential … blue-sky the vision … then wrap it up.

 

All of which may seem pretty obvious, but why are so many presentations so boring?

 

You have a flawed company? Every company is flawed, one way or another, but most are still marketable if there’s a decent management infrastructure. The trick is to negate the problem(s), accentuate the positive and focus on your future vision. Get investors’ minds off the bad stuff! Remember, we’re a nation of second and third chances, and past stumbles are quickly forgotten by anyone looking for the Next Big Thing.

 

BOTTOM LINE: Effective investor marketing = common sense + imagination + good distribution. Nothing that complicated, as a certain pseudo-profession would have you believe!

 

Ready to Think Different?