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Webcast: Why Facebook Investor Relations Will Fail You

Posted by AGORACOM at 7:07 AM on Thursday, March 17th, 2011

I love Facebook.  I am on Facebook.  It has done wonders for helping me maintain relationships with the hundreds of people in my life that I don’t have time to see and speak to on a regular basis.  AGORACOM is on Facebook.  We have 488 fans and it is a great way for our members or other investors on Facebook to get our info into their feed.

Facebook is a phenomenon unlike any other I have seen – and I look forward to being a part of it for years to come.

But relying on Facebook as your primary online investor relations destination is a recipe for disaster.  Contrary to what Social Media IR Experts (aka “Pretenders”) will tell you, Facebook IR will fail you.

To find out the many reasons why – and how I put my money where my mouth is – watch the presentation I gave at IR Conference 2011 in Vancouver on January 21.  It was the anchor presentation and feedback from the audience of small-cap public companies was tremendous.  I opened their eyes and know it will do the same for you.

The good news is that Facebook done correctly can be a big boost to your online investor relations campaign.  Look for that presentation to come out in about a month, or feel free to contact me at [email protected] to discuss sooner.

Regards,
George

Small-Cap CEO Lesson: The Most Successful CEO’s Of The Next Decade Will Be Web Driven. Bet On It.

Posted by AGORACOM at 3:31 PM on Saturday, February 26th, 2011

I first posted this back in February of 2009. Nothing has changed and, in fact, the post has become even more relevant today.  If you are looking to take your public company to that next great level, than trust me when I tell you this is the answer:

=====================

You heard it here first.  Bookmark it, bet on it.  The most successful small-cap stocks of the next decade will overwhelmingly be led by “webified” CEO’s that fully understand:

  1. Shareholders want to interact and be part of your company’s conversation.  Don’t fear them.  Contrary to popular belief, 95% of investors want to gain knowledge and provide constructive feedback.  Listen to what they have to say, incorporate their best ideas and you will have happy, loyal shareholders.
  2. Prospective shareholders are looking for you.  They are using search engines, electronic shareholder forums, blogs, social networks, videos and good ol’ word of mouth to find a company to park their money with.  They are not using their brokers.
  3. 1-1 communications are over. E-mail, phone calls and visits to your websites are slow, inefficient and over.  Today, you have the tools to communicate with hundreds/thousands of people simultaneously.
  4. Shareholders are global.  Tear down barriers related to geography, time zones and language.  The best way to both connect with current investors and reach new investors in the four corners of this planet is by incorporating each of the following into your investor relations program (in no particular order):

YouTube Delicious Word Press

Fair warning to all small-cap CEO and investor relations officers:  If you don’t know what these are, never used them and – most importantly – don’t know how to integrate them into your IR program, your chances of success will be significantly diminished.

Believe me when I tell you.  We have already entered the next era of investor relations.  Thanks to the SEC (they did something right in 2008) the digital investor relations dam has burst and IR departments of the world’s biggest companies are now scrambling to understand and incorporate “IR 2.0”.

The good news?  It isn’t as difficult as you think.  We know because we’re already using these tools in our daily communications…just click on any of the logos above to see us in action.

Damn, now I have an itch to take AGORACOM public.

Regards,
George

AGORACOM Averages 1.1 Million Investors, 7.4 Million Visits and 74.7 Million Pages Annually For 2008-2010

Posted by AGORACOM at 4:21 AM on Friday, January 21st, 2011

Good morning to you all.  As you know, I love to share AGORACOM Traffic data and today I’ve pulled out our average annual traffic metrics for the years 2008 – 2010, representing our first 3 full years of operating a full-blown community for the small-cap industry.  Suffice it to say, we are extremely proud of the results, which all started with this mission to smash the status quo by launching “Investor Controlled” stock discussion forums back in October of 2007.

As always, please find enclosed a Google Analytics snapshot that details the period:

TRAFFIC DATA SNAPSHOT COMING SHORTLY

THE TALE OF THE TAPE

(Figures for January 1, 2008 – December 31, 2010. All figures reported by Google Analytics)

  • Unique Visitors 3,323,264
  • Visits 22,200,293
  • Page Views 224,097,193
  • Pages Per Visit 10.09
  • Avg Time On Site 8:26
  • Traffic Sources  55.65% Direct;  27.03% Search Engines; 16.15% Referring Sites
  • Number Of Countries/Territories 223
  • Top 10 (Canada, USA, Germany, Netherlands, UK, Belgium, Sweden, Switzerland, Australia, Norway)

The numbers look even better when you consider

  • We built our model on quality vs quantity. As such, this is pure discussion. No spam, flaming and bickering traffic.
  • We are only focusing on small-cap and mid-cap stocks …for now.

The continued strength in our traffic can be attributed to the following reasons.

1. Social Media

We have really turned on our social media efforts in 2010, which have resulted in:

  • Twitter:  A focus on great content has helped us generate 1,460 followers on our main AGORACOM Twitter Account.  This is especially impressive when you consider the fact we have a 3.93:1 ratio of following:followers.  In English, that means we’ve earned our followers, as opposed to simply racking up high totals by reciprocal follows.
  • Our Facebook Fan Page now has over 475 Fans thanks to the great content (video, blog posts, tweets) we are feeding into it on a daily basis

SOCIAL MEDIA IS MEANINGLESS WITHOUT TRAFFIC

Furthermore, we’ve worked hard at cross-promoting our social media channels AND providing a variety of content on each. If you’re a small-cap company that is simply creating Twitter and Facebook accounts to post press releases, you are simply wasting your time (Beware Of ….  The Rise Of Social Media IR “Experts” a.k.a Pretenders)

Cross-promote and differentiate so that investors have options to consume what is most important to them.  Otherwise, investors simply won’t engage you.  If you can’t do this internally, call me.

2. Cross-Promoting Great Content

We recently introduced a “News Flash” feature that allows us to provide investors in every corner of AGORACOM with breaking/important small-cap news as it happens.  As a result, investors that may be focused on a particular HUB or group of HUBS on AGORACOM are discovering new ideas every day.

More than just lip service, click-through analysis shows these are a big hit with AGORACOM visitors and a good reason to both keep returning to the site and consuming our content.

3. Great Platform

Small-Cap Investors continue to flock to AGORACOM thanks to what we believe is the best small-cap community platform on the web. By providing Wiki and UGC tools to our members, we’ve put significant control into their hands and that has benefited the entire community. From adding/editing/updating content, to self-policing their own HUBS, members have created a small-cap community that is more informative and cleaner than any other small-cap site on the web. It isn’t perfect – but it is as close to perfect as you can get using today’s technology.

4.  Mobile

We are seeing dramatic results from mobile devices that will be the subject of a separate blog post over the next few days.  In the meantime, suffice it to say that mobile traffic is big and expanding rapidly as small-cap investors check in from the road, waiting rooms, the beach and any other place away from their PC.  This is traffic we simply didn’t have a couple of years ago and we expect it to climb significantly for years to come.  Hence, why we recently announced the launch of our iPhone Small Cap App.

CONCLUSION

Going forward, we’ll be adding further fuel to the fire via the following exciting initiatives:

* Rapid traffic expansion in 2011 thanks to greater product variety for public companies

* Our upcoming mobile push in Q1, including the launch of an Android and Blackberry App to complement our iPhone App and of course our Blackberry partnership

* Our next online conference in Q2.  Our first one brought in over 17,500 investors from 77 countries.

* An expanded content push (Holding our cards close to our chest)

* A greater social media push (Look for Facebook and Twitter integration announcements)

All in all, we’re excited about the next 12 months and beyond.  If you think we’ve come a long way, you ain’t seen nothin’yet.

Thanks to our great clients and members for continuing to make AGORACOM the best community platform within the small-cap industry.

Regards,
George

AGORACOM Social Media Paying Off Big Dividends For Small-Cap Investor Relations Clients

Posted by AGORACOM at 11:54 PM on Wednesday, January 5th, 2011

AGORACOM 2011 Social Media Summary

We have really turned on our social media efforts in 2010, which have resulted in:

  • Twitter:  A focus on great content has helped us generate 1,460 followers on our main AGORACOM Twitter Account.  This is especially impressive when you consider the fact we have a 3.93:1 ratio of following:followers.  In English, that means we’ve earned our followers, as opposed to simply racking up high totals by reciprocal follows.
  • Our Facebook Fan Page now has over 475 Fans thanks to the great content (video, blog posts, tweets) we are feeding into it on a daily basis

SOCIAL MEDIA IS MEANINGLESS WITHOUT TRAFFIC

Furthermore, we’ve worked hard at cross-promoting our social media channels AND providing a variety of content on each. If you’re a small-cap company that is simply creating Twitter and Facebook accounts to post press releases, you are simply wasting your time (Beware Of ….  The Rise Of Social Media IR “Experts” a.k.a Pretenders)

Cross-promote and differentiate so that investors have options to consume what is most important to them.  Otherwise, investors simply won’t engage you.  If you can’t do this internally, call me.

CROSS-PROMOTING GREAT CONTENT

We recently introduced a “News Flash” feature that allows us to provide investors in every corner of AGORACOM with breaking/important small-cap news as it happens.  As a result, investors that may be focused on a particular HUB or group of HUBS on AGORACOM are discovering new ideas every day.

More than just lip service, click-through analysis shows these are a big hit with AGORACOM visitors and a good reason to both keep returning to the site and consuming our content.

That’s all for now.  Keep a lookout for more updates by clicking on any of the categories highlighted below.

Regards,

George

974,000 Investors, 55.5 Million Page Views On AGORACOM In 2010

Posted by AGORACOM at 7:32 AM on Wednesday, January 5th, 2011

Good morning to you all and Happy New Year to you and yours.  As most of you know, I like to share AGORACOM traffic data on a regular basis.  Why?  In the world of online investor relations, nothing speaks more about your ability to meet a client’s needs than the amount of traffic and overall engagement you are able to deliver.  This is especially true in the small-cap space, which is full of investor relations pretenders that throw around all the right jargon but offer little to no substance.

To this end, I am very happy to announce our traffic results for the full year 2010.  If a picture is worth a thousand words, this snapshot from our Google analytics is worth several million.

CLICK IMAGE FOR LARGER VERSION


THE TALE OF THE TAPE

(Figures for January 1, 2010 – December 31, 2010. All figures reported by Google Analytics)

  • Unique Visitors 974,019
  • Visits 6,486,371
  • Page Views 55,556,593
  • Pages Per Visit 8.57
  • Avg Time On Site 7:46
  • Number Of Countries/Territories 208
  • Top 10 (Canada, USA, Germany, Netherlands, UK, Belgium, Sweden, Switzerland, Norway, Mexico)

The numbers look even better when you consider

  • We built our model on quality vs quantity. As such, this is pure discussion. No spam, flaming and bickering traffic.
  • We are only focusing on small-cap and mid-cap stocks …for now.

The continued strength in our traffic can be attributed to the following reasons.

1. Social Media

We have really turned on our social media efforts in 2010, which have resulted in:

  • Twitter:  A focus on great content has helped us generate 1,460 followers on our main AGORACOM Twitter Account.  This is especially impressive when you consider the fact we have a 3.93:1 ratio of following:followers.  In English, that means we’ve earned our followers, as opposed to simply racking up high totals by reciprocal follows.
  • Our Facebook Fan Page now has over 475 Fans thanks to the great content (video, blog posts, tweets) we are feeding into it on a daily basis

SOCIAL MEDIA IS MEANINGLESS WITHOUT TRAFFIC

Furthermore, we’ve worked hard at cross-promoting our social media channels AND providing a variety of content on each. If you’re a small-cap company that is simply creating Twitter and Facebook accounts to post press releases, you are simply wasting your time (Beware Of ….  The Rise Of Social Media IR “Experts” a.k.a Pretenders)

Cross-promote and differentiate so that investors have options to consume what is most important to them.  Otherwise, investors simply won’t engage you.  If you can’t do this internally, call me.

2. Cross-Promoting Great Content

We recently introduced a “News Flash” feature that allows us to provide investors in every corner of AGORACOM with breaking/important small-cap news as it happens.  As a result, investors that may be focused on a particular HUB or group of HUBS on AGORACOM are discovering new ideas every day.

More than just lip service, click-through analysis shows these are a big hit with AGORACOM visitors and a good reason to both keep returning to the site and consuming our content.

3. Great Platform

Small-Cap Investors continue to flock to AGORACOM thanks to what we believe is the best small-cap community platform on the web. By providing Wiki and UGC tools to our members, we’ve put significant control into their hands and that has benefited the entire community. From adding/editing/updating content, to self-policing their own HUBS, members have created a small-cap community that is more informative and cleaner than any other small-cap site on the web. It isn’t perfect – but it is as close to perfect as you can get using today’s technology.

4.  Mobile

We are seeing dramatic results from mobile devices that will be the subject of a separate blog post over the next few days.  In the meantime, suffice it to say that mobile traffic is big and expanding rapidly as small-cap investors check in from the road, waiting rooms, the beach and any other place away from their PC.  This is traffic we simply didn’t have a couple of years ago and we expect it to climb significantly for years to come.  Hence, why we recently announced the launch of our iPhone Small Cap App.

DECREASE IN PAGE VIEWS

On the flip side, we have seen a decrease in page views over the same period last year that can probably be attributed to two items. First, one of our busier HUBS was Freewest Resources which was acquired by Cliff’s Natural Resources in Q1 2010 after a long and bitter battle with Noront Resources, which also happens to be a very busy HUB on AGORACOM.  As such, with Freewest being taken over, we haven’t had the benefit of page views for one of the prominent players within the Ring Of Fire, nor have we had the benefit of the debate between two very busy HUBS.

Second, as a result of our OSC matter, several of our high-profile client HUBS have been put on hold, leading to page view losses there as well.

Nonetheless, 974,000 visitors and 55,500,000 page views is pretty good for a slow year and we

CONCLUSION

Going forward, we’ll be adding further fuel to the fire via the following exciting initiatives:

* Rapid traffic expansion in 2011 as clients come back to AGORACOM.

* Our upcoming mobile push in Q1, including the launch of an Android and Blackberry App to complement our iPhone App and of course our Blackberry partnership

* Our next online conference in Q2

* An expanded content push (Holding our cards close to our chest)

* A greater social media push (Look for Facebook and Twitter integration announcements)

Thanks to our great clients and members for continuing to make AGORACOM the best community platform within the small-cap industry.

Regards,
George

873,000 Investors, 50 Million Page Views On AGORACOM Year To Date

Posted by AGORACOM at 12:02 AM on Friday, November 19th, 2010

Good evening to you all. As most of you know, I like to share AGORACOM traffic data on a regular basis and today is no exception.  I was a little distracted for the quarter ended September 30th and with things getting back to normal around here, it was a good time to report on our traffic.

I’m pleased to report that the number of visitors (873,000) visits (5,820,000) and page views (50,000,000) to AGORACOM remain very strong despite a couple of extraordinary matters this year compared to last year, which I will discuss further below.

Please find enclosed a Google Analytics shot of our traffic year to date (January 1, 2010 – Nov 17, 2010)

The continued strength in our traffic can be attributed to the following reasons.

1. Social Media

We have really turned on our social media efforts in 2010, which have resulted in:

SOCIAL MEDIA IS MEANINGLESS WITHOUT TRAFFIC

Furthermore, we’ve worked hard at cross-promoting our social media channels AND providing a variety of content on each. If you’re a small-cap company that is simply creating Twitter and Facebook accounts to post press releases, you are simply wasting your time (Beware Of ….  The Rise Of Social Media IR “Experts” a.k.a Pretenders)

Cross-promote and differentiate so that investors have options to consume what is most important to them.  If you can’t do this internally, call me.

2. Cross-Promoting Great Content

We recently introduced a “News Flash” feature that allows us to provide investors in every corner of AGORACOM with breaking/important news as it happens (both small-cap specific or macro-market related). As a result, investors that may be focused on a particular HUB or group of HUBS on AGORACOM no longer feel as if they are missing important news.

Click-through analysis shows these are a big hit with AGORACOM visitors and a good reason to both keep returning to the site and consuming our content.

3. Great Platform

Small-Cap Investors continue to flock to AGORACOM thanks to what we believe is the best small-cap community platform on the web. By providing Wiki and UGC tools to our members, we’ve put significant control into their hands and that has benefited the entire community. From adding/editing/updating content, to self-policing their own HUBS, members have created a small-cap community that is more informative and cleaner than any other small-cap site on the web. It isn’t perfect – but it is as close to perfect as you can get using today’s technology.

DECREASE IN PAGE VIEWS

On the flip side, we have seen a decrease in page views over the same period last year that can probably be attributed to two items. First, one of our busier HUBS was Freewest Resources which was acquired by Cliff’s Natural Resources in Q4 2009 after a long and bitter battle with Noront Resources, which also happens to be a very busy HUB on AGORACOM.  As such, with Freewest being taken over, we haven’t had the benefit of page views for one of the prominent players within the Ring Of Fire, nor have we had the benefit of the debate between two very busy HUBS.

Second, as a result of our OSC matter, several of our high-profile client HUBS have been put on hold, leading to page view losses there as well.

Nonetheless, 873,000 visitors and 50,000,000 page views is pretty good for a slow year.

CONCLUSION

Going forward, we’ll be adding further fuel to the fire via the following exciting initiatives:

* Our upcoming mobile push in November, including the launch of our iPhone App and of course our Blackberry partnership

* An expanded content push (Holding our cards close to our chest)

* A greater social media push (Look for Facebook and Twitter integration announcements)

Thanks to our great clients and members for continuing to make AGORACOM the best community platform within the small-cap industry.

Regards,
George

The Rise Of Social Media IR “Experts” a.k.a. Pretenders

Posted by AGORACOM at 12:56 PM on Friday, October 8th, 2010

Suddenly, Everyone Is A Social Media Expert In IR (Courtesy Of BrianSolis.com)

As you all know, I simply love online investor relations.  I believe it is the ultimate equalizer for small-cap companies that need affordable and efficient ways to both communicate with current shareholders and find new prospective investors.

I’m proud to say that AGORACOM pioneered online investor relations for small-cap companies by creating a platform that ties both communications and marketing together into one great package.  More than just lip service, AGORACOM ranked #57 in the Profit 100 of Canada’s fastest growing companies in 2009.  This isn’t meant to show off our success but, rather, to demonstrate how big online investor relations has become – and how big it is going to be.

GREAT ONLINE IR COLLEAGUES

I’m also happy to say that we don’t own the online investor relations space.  Otherwise how valuable could the services be if others didn’t find it worthy to participate in? For example, Q4 Websystems, Meet The Street and IR Web Report have done some great things in the space, keep me on my toes and teach me new tactics along the way.

I respect my colleagues for the work they do and for making the space better for everyone.

GREAT ONLINE IR PRETENDERS – A Twitter/Facebook/YouTube Account Is Not An Online IR Program

Unfortunately, we are now starting to see the rise of Online IR Pretenders.  They claim to be “leaders” in social media and will set up a Twitter/Facebook/YouTube account to prove it.

If it were only that easy.

Setting up some social media accounts mean nothing unless they come with traffic and visibility.  Any 16-year old kid can create flashy looking social media accounts for you in under an hour and bolt on some basic advertising to it.  This is why social media pretenders are so cheap. Unfortunately, social media pages do not make an online investor relations program, no matter how cheap the pitch.

Said another way, you’re better off saving the $10,000 you’d spend on a Yugo and putting it towards a $30,000 Maxima.

Without a real vehicle, all you have is a puttering online IR program.

A REAL AUDIENCE VS. A PRETENDERS AUDIENCE

Social Media IR Pretenders don’t have an audience  – they simply talk about the blue sky audience.  Hell, if a traditional IR firm pitched you by saying “there are 6 Billion people on this planet”, would you get excited and hire them?  Think about it.

Here Is What A Pretender Audience Looks Like

  • Facebook Has 500 Million Members
  • Twitter Has 165 Million Users
  • YouTube Has 1 Zillion people watching 10 Zillion videos every day
  • Everybody in the world has a mobile phone
  • …. etc., etc.

This may all be true – but it doesn’t mean any of them are going to run to your social media pages.  Getting their attention is hard. Very hard.  It takes time … years even …. to build credibility and content that drives a small fraction of these people to you.

Here Is What A Real Audience Looks Like:

  • 1,114,000 Investors Hit AGORACOM In 2009.
  • 547,000 Investors Hit AGORACOM in First Half of 2010
  • AGORACOM Reports 17,792 Investors From 77 Countries Participated In Online Gold and Commodities Conference
  • Mobile Devices Drive 16,000 Small-Cap Visits To AGORACOM In August
  • AGORACOM Videos Viewed Over 250,000 Times
  • …. you get the idea

CONCLUSION

Next time a Social Media IR “Expert” comes knocking on your door – ask them how much traffic they’re actually pulling into their sites.  If they start talking about blue sky, show them the door.

Small-Cap CEO Lesson: Lost Wall Street Trust Is Potential Small-Cap Gain

Posted by AGORACOM at 11:10 AM on Tuesday, September 7th, 2010

THIS IS AN UPDATE TO A POST ORIGINALLY MADE IN MARCH 2009

I originally posted this story in March of 2009 and concluded it by stating:

Wall Street is out of favor … waaayyy out of favor. Take advantage of the environment, get out there and show investors why you and your hard working small-cap company can be trusted.

So why am I repeating it?  Take a look at the following quotes from two great sources this morning:

“Retail is absolutely moribund, there’s nothing going on in retail,” Sanford Bernstein’s Hintz said. “The retail investor has dug his foxhole and put on his helmet, and he’s just sitting there.”  Bloomberg – Wall Street Needs Off The Charts September To Rescue Quarter

“…the ongoing boycott by retail investors (who incidentally hold the bulk of the S&P’s market cap) of terminally broken capital markets may finally achieve more than all futile campaigns to pull deposits out of the TBTF banks ever could. It is no secret that regular, non computerized, investors have now shut out Wall Street as they now have absolutely no faith left in capital markets, a phenomenon we have been tracking since its inception.” Zero Hedge – Surging Retail Outflows Mean Worst Quarter For Wall Street Since 2008

Since 2008, I’ve talked about the loss of trust being the greatest risk to markets. Specifically, investors can flow with market cycles and always come back. However, if they lose trust, it will take a long time for Wall Street to gain them back.  Thanks to information provided by Dominic Jones over at IR Web Report, the data showed that trust was officially broken in 2009. He cites a number of reports here, here and here – but here are some of the highlights, starting with this telling graphic:

  • Nearly two-thirds of investors (62%) trust corporations less than they did a year ago.
  • Only 38% said they trust business to do what is right, a 20% plunge since last year.
  • Only 17% said they trust information from a company’s CEO.
  • In China, the “trust in business” score actually rose from 54% to 71% among 35-to-64-year-olds.
  • Specialists remain the most trusted purveyors of information about a company, with 62% globally saying an academic or expert on a company’s industry or issues would be extremely or very credible.
  • Employees and peers are also considered credible sources of information about a company, with 47% trusting what they hear from “a person like yourself” and 40% trusting conversations they have with employees.

LOST WALL STREET TRUST IS POTENTIAL SMALL CAP GAIN

In short, investors don’t trust Wall St CEO’s – but they do still trust people like themselves.  Most Small-Cap CEO’s fit the description perfectly because they are typically people that resemble retail investors far more than Wall Street CEO’s.

GET OUT FROM BEHIND THE PRESS RELEASE

This tells me quite clearly that there is no better time for an online investor relations campaign by small-cap companies.  I say online because this mode of investor relations provides the most direct channel of communications with online retail investors.  Specifically, videos, webcasts, audio interviews, blog posts and Twitter posts are simple and cost efficient ways to speak directly with retail investors.  Take advantage of the opportunity because you may never have this kind of opportunity again.

If you have any fears about speaking with investors directly, just remember that you’ve already done it dozens of times at conferences, AGM’s and other real-world meetings.  Get out from behind the press release.  If you’re not already doing so, you have to ask yourself, Why Am I Not Talking To Investors? If you need help answering this question, give me a call and let’s start implementing a solution.

Wall Street is out of favor … waaayyy out of favor. Take advantage of the environment, get out there and show investors why you and your hard working small-cap company can be trusted.

Regards,
George

My Response To Business Wire Response To Dominic Jones – In Case BW Doesn’t Publish It

Posted by AGORACOM at 3:47 PM on Saturday, July 3rd, 2010

Online investor relations participants are fully aware of Dominic Jones’ criticism of PR Wires – including Business Wire (read them here).  As such, there is no need to repeat the story here.

A couple of days ago, Neil Hershberg, Senior Vice President, Global Media at BW posted a response to many of those criticisms. I looked forward to reading it given the amount of posts I had already read by Jones.  Like most logical people, I believe there are 2 sides to any story and I was looking forward to finally reading the BW side.

Unfortunately, by the second paragraph, I realized this was going to be less about the facts and more about smearing when I read the following:

“The swift and successful industry transformation has largely relegated web disclosure strategists to the sidelines; the need for their consultative services is drying up faster than a passing shower in the Sahara.”

First, what  does this have to do with the debate at hand? The business model of desperate online IR vendors is to knock down industry stalwart BW to win business?

Second, it is WRONG. Web disclosure strategists are doing some pretty brisk business and growing everyday.

As such, the statement is both irrelevant and incorrect – not exactly what I expected from BW.

I don’t think I’m alone in my conclusions about the BW piece because not one comment had been posted in support of or against it.  Given the size of BW and the importance of some of these issues within a less-than-shy IR industry, I take the lack of comments as evidence that the post failed to hit its mark.  Given the fact I am one of the less-than-shy IR players, I posted a comment that is now awaiting moderation. I hope BW approves it.  In case it isn’t approved, here is a copy of my post.

I’d like to hear back from colleagues as to whether or not BW should take another shot at its’ response.  Remember, I’ve taken some hard licks from Dominic Jones myself. Some of them have been well deserved, others not so much (in my opinion).  The point is, I’m not one of the Jones “like-minded followers” that BW talks about in its post.  I just want to see a great debate of the facts.

MY RESPONSE TO BUSINESS WIRE POST

There is no doubt that a response to Dominic Jones is valuable to everyone in the IR industry. We are all best served by a healthy debate over the facts.

Unfortunately, the amount of sarcasm in your response served to both distract from your message and decrease its credibility. Evidence of this can probably be seen in the fact I am the first person to post a comment.

I expected more from BW than “blather addressed” (your tweet) … “like-minded followers” … “from his hermit kingdom north of the border”. Not only is the language unprofessional, it is insulting to those professionals that agree with some/all of his posts, especially those from Canada.

That fact that you chose to marginalize this group of people, rather than serve up a strong, convincing counter-argument leads me to conclude the purpose of this post was less about the issues at hand and more about attacking Jones personally.

Finally, you stated “Jones finally confirmed last week what we have said all along: He is simply a vendor in blogger’s clothing.”

Correct me if I’m wrong but don’t we all know that Jones is an IR vendor? Hasn’t he been very clear about this from the outset? Did you really think you had confirmed what the rest of us didn’t already know?

Conclusion – I would have preferred an article that punched and counter-punched on the facts. It would have been a great read. By making it personal, you’ve failed to get your message across.

=================

Regards,

George

Small-Cap CEO Lesson: Hedge Funds Are Now Monitoring Blog Posts As Part Of Their Black Box Trading

Posted by AGORACOM at 2:58 PM on Thursday, May 13th, 2010

Image Courtesy Of Amazon

Algorithmic trading – better known as black-box trading, algo trading and robo trading is widely used by pension funds, mutual funds and some hedge funds to generate and execute orders automatically.  These black boxes take into account almost any piece of relevant data you can think of, analyze them every nanosecond and execute trades accordingly.

According to this article from IR Magazine, Hedge Funds are now testing the addition of a very different element within their black boxes – a data feed produced by monitoring a group of financial commentators that includes bloggers.

The feed – put together by Alacra, a data aggregator – monitors the output of around 25,000 analysts by combing the web for their comments. This group contains a number of prominent bloggers, such as Barry Ritholtz (AGORACOM Online Conference Keynote Speaker), Henry Blodget, Felix Salmon and Fred Wilson.

(Another AGORACOM Online Conference Keynote Speaker, Paul Kedrosky, is also included in the list)

That’s right, they’re moving beyond raw data, bits and bites to include the written words of bloggers. Why?

“The trial is still at an early stage, but it shows how seriously the investment community is
taking the opinions of those working outside traditional media outlets.”

What is the Small-Cap CEO Lesson Here? If Hedge Funds believe bloggers are worth listening to when evaluating the markets at any given second, what are you doing to have your voice heard?  To be clear, I doubt the blog of a small-cap company is ever going to be included within Hedge Fund black boxes – but I unequivocally believe that small-cap investors would love to hear from you as they make their investment decisions.

(Hat Tip to Barry Ritholtz)

Regards,
George