Agoracom Blog Home

Archive for the ‘Small-Cap CEO Lessons’ Category

Small-Cap CEO Lesson – Why You MUST Issue Press Releases By 8:30 AM EST

Posted by AGORACOM at 8:50 AM on Tuesday, March 27th, 2012

 

I first published this story in August of 2007 – but it is even more important today than ever before.

Now that AGORACOM Small Cap TV  has cracked 400,000 views, one of the things we have noticed in our morning research is that small-cap companies continue to release news just at or before the open. This might have been a smart practice back in the day when only brokers could access press releases on their screens but it makes no sense whatsoever now that the web opens up your press releases to the entire world.

Why?

Folks, we are in a social media world (and never going back) in which investor communities are becoming invaluable sources of information for small-cap investors. As a result, small-cap and micro-cap information is being analyzed and discussed by and on AGORACOM, StockTwits, Twitter, Bloggers, Commentators, Podcasters, and Vloggers everyday.  Much of this collaboration takes place well before market open as online  investors prepare for their day.  The more time you give them to discover your news, the more time you give them to share it via their preferred networks …. for free!

THE LEAST THAT YOU COULD DO

Being the most recent news just prior to market open is no longer a smart strategy.  It’s a dumb strategy.  If you want your great news syndicated around the web by these incredible reporting sources, you have to give them a chance to see your news, digest it and report on it. That can’t happen at 9:15 because professional sources such as AGORACOM TV have a cut-off of 8:45 AM so that we can be published by 9:45.  Individual investors also have the reality of a job that most begin by no later than 9:00 AM, which explains why most are doing their research between 7:30 – 8:30.

As such, if your press release is coming out at 9:30, you’ve robbed yourself of potential mass coverage by one or more sources that might have otherwise picked up your news and sent it right around the world.

Bottom line – put your news out by no later than 8:30 AM EST.  In fact, somewhere between 8:00 and 8:30 AM EST makes the most sense …. unless shunning free coverage is actually part of your investor relations plan.

Best,
George

Online Investor Relations Done Right – UC Resources Embraces Skype, Online Q&A, Video To Reach Shareholders

Posted by AGORACOM at 9:11 AM on Tuesday, January 17th, 2012

When Gary Monaghan was appointed CEO of UC Resources a few months ago, it was to usher in a new era for the company and its shareholders.   Nonetheless, you hear that just about anytime a new coach takes over a team or a company, so some shareholders of UC Resources could have been forgiven if they didn’t hold their breath.  Well, it’s time for them to exhale because Gary has done nothing less than exceed expectations by embracing online investor relations to create better communications and relationships with shareholders.  Here are the highlights:

  1. On November 10th, UC Resources announced the sale of its interests in the highly promising McFaulds Lake (a.k.a. Ring Of Fire) region for $6,000,000 to Cliffs Natural Resources in order to focus on its Mexican production and exploration projects
  2. With some shareholders expressing concern over this shift away from the Ring Of Fire, Gary took to Skype just a couple of days later to communicate his specific reasons for the move and why it was in the best interests of shareholders.  Shareholder response was overwhelmingly positive and appreciative of Gary’s proactive step to reach out and speak with them.
  3. On November 30th, UC issued a further press release to update shareholders on the status of the transaction AND the company’s plans upon successful close of the sale in January.
  4. On January 6, 2012, UC Resources announced closing of the $6,000,000 sale.
  5. On January 12, less than a week later, Gary announced an online Q&A in which shareholders were invited to ask questions about the company’s Mexican assets and future direction
  6. On January 16, Gary and the company provided answers to all of the questions asked by investors
  7. On January 17, Gary and UC Resources broadcast a video to update their shareholders on the sale, as well as, their Mexican Operations

Gary and UC Resources may be clients of AGORACOM – but that doesn’t take away from the fact that he simply gets online investor relations.  Specifically, though conferences and road shows are great places to meet your investors in person 3-4 times per year, online collaboration is the only way to truly collaborate with your shareholders anytime and anywhere.

This is especially important for small-cap companies that lack analyst and media coverage to fill the gaps.  As a result, shareholders heavily rely on management to go beyond press releases and actually communicate with them about the intricacies that potentially affect their investments.  Communications that are just one click away create greater confidence, turst and belief in the long-term vision of the company, leading to a greater number of shareholders becoming long-term investors and the company’s best ambassadors.

INVESTORS OVERWHELMINGLY APPROVE …  INDUSTRY EXPERTS COVERING THE STORY

More than just lip service, look how Gary’s Q&A has shot to the top of the most favourite posts as voted by shareholders:

Moreover, his efforts are already starting to get recognized by industry experts:

Congratulations to Gary and the entire UC Resources team.  We not only look forward to more of the same … we also hope this will serve as a great example for other small-cap companies to follow.

Contact AGORACOM to discuss your online investor relations program.
Regards,
George

SEC Provides Guidance On Super 8-K’s

Posted by AGORACOM at 11:57 PM on Tuesday, October 11th, 2011

(Via Richardson & Patel Newsletter)

SEC PROVIDES GUIDANCE ON SUPER 8-K’S

In 2005, the SEC adopted a rule that required the filing of what is an equivalent to a public offering prospectus for a merger with a public reporting shell company. In recent months the SEC has taken to reviewing these transactions and issued advice based on these reviews.

The SEC has reiterated that virtually any acquisition, including by lease, merger or exchange, triggers the obligation to file a Super 8-K. Issuers were also reminded that Item 9.01(b) of Form 8-K requires pro forma financial information to be included, not just the financial statements of the acquired company. Additionally, any exhibits, including those representing material contracts, have to be in English. Clear disclosure of holding company and control arrangements, as well as a detailed description of both current and planned business going forward is also required. Lastly, if risk factors are included, they must be tailored specifically to the company.

The SEC also offered guidance pertaining to the involvement of officers in the company. If officers are not spending full time in the business, they should be specific about the time they do devote. It is also important to include a summary compensation table for the acquired company’s most recent fiscal year. In disclosing affiliate and related transactions, a two year look back prior to the public company’s latest fiscal year is required in describing the standards used to determine director independence

Richardson & Patel, LLP | 10900 Wilshire Blvd | Suite 500 | Los Angeles | CA | 90024

AGORACOM Small-Cap Videos Break 400,000 Views, Dominate Search Engine Results

Posted by AGORACOM at 8:03 AM on Thursday, September 15th, 2011

Good morning to you all.  I’m very proud to announce that views of AGORACOM videos have surpassed 400,000 since we first began broadcasting daily shows, client interviews and other great small-cap video content.  This is great news for clients and the entire small-cap industry because it proves up yet another effective, efficient and low-cost way to communicate with current shareholders and potential investors.  See my comments below on why connecting with shareholders via video is critical.

AGORACOM Videos are broadcast on more channels than we can count but here are just a few of them:

What is even more encouraging is the fact that video views are accelerating for the following reasons:

  • We’ve added on more shows.  We’ve grown from AGORACOM Small Cap TV to AGORACOM Small Cap Gold and Resources TV and Chinese Small Cap TV
  • Each show has become it’s own stand alone channel on sites such as YouTube, BlipTV, Yahoo Video and other sites.
  • We’ve made our daily shows timely and relevant by releasing them between 9:30 – 9:45 AM EST every morning right after the open.  This consistency creates the kind of reliability investors like.
  • Our daily videos provide great value to small-cap investors.  How? We filter the hundreds of small-cap press releases issued every morning and report on the best 1-5 of the day.
  • We’ve integrated all the videos into our social media streams on Twitter, Facebook, StockTwits and other avenues
  • We’ve made our videos extremely search engine friendly by adding accurate descriptions and customized info for every show.

DOMINATING SEARCH FOR “SMALL CAP VIDEOS”

As a result of our hard and meticulous work, search engines are starting to reward us for our efforts, which only leads to more exposure amongst small-cap investors.  For example:

  1. Google Video – We hold all top 10 spots for searches of “small-cap resource stocks
  2. YouTube – We dominate the entire first page for searches of  “Chinese small cap stocks
  3. Google Video – We hold 8 of the top 10 spots for searches of “small-cap
  4. Google Video – We hold 9 of the top 10 spots for searches of “small-cap gold stocks
  5. YouTube – We hold 9 of the top 10 spots for searches of “small-cap resource stocks

INCORPORATING SKYPE INTERVIEWS WITH SMALL-CAP CEO’S

We are so focused on the importance and relevance of video to the small-cap industry, that we’ve recently begun incorporating Skype Video interviews into our programming.  Again, the premise is to get small-cap companies and investors connecting with each other immediately after the release of material news.  Expect to see this grow significantly in 2011.

WHY IS VIDEO SO IMPORTANT TO SMALL-CAP COMPANIES?

One of the greatest problems faced by small-cap companies, even the really good ones, is the lack of connection with investors beyond issuing press releases.  As a result, investors have no loyalty to you if business simmers down for a while because they’ve been trained to only react to good news.  As we all know, that simply isn’t possible for most small-cap companies.  All of you go through slow and dry periods for various reasons.  Even when business is going well, you often have to wait on the next big sales contract, drill result, etc.  God help you if the wait is longer than expected.

As such, connecting with investors creates a personal relationship that buys you the time to execute your plan.  Video is an excellent connector because it allows you to communicate as openly as possible without actually standing in front of shareholders.  Investors love video because watching facial expressions and body language is the next best thing to strapping you into a lie detector.  It also makes shareholders far more likely to share what you have to say because video beats boring text.

If you’re a small-cap company and don’t have an online video strategy yet, I suggest you start thinking about one.  Alternatively, call us and we’ll take care of it.

Regards,
George

The Rise Of Social Media Investor Relations “Experts” a.k.a. Pretenders – Part 2

Posted by AGORACOM at 4:04 PM on Wednesday, August 3rd, 2011

Back In October of 2010, I posted the story The Rise of Social Media IR “Experts” a.k.a. Pretenders and I used the image below.  It was humorous poke at a very serious subject – Pretenders that are fleecing small-cap companies by promising they can tap into 700 Gazillion people on Facebook, Twitter and every where else (see full story at the end).

Courtesy of Briansolis.com

I used the concept for my keynote speech at IR Conference 2011 where I presented 500 Million Reasons Why Facebook IR Will Kill You (Watch Webcast) to small-cap resource companies – to their great satisfaction.

Well, it seems my good friends (and our fantastic web developers) at The Working Group are running into a similar problem in their industry and have also used humour to convey their caution to customers … so I just had to add it on to this post to drive the point home even further.

Courtesy Of The Working Group

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 $40,000 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:

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.

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

Loving How Skype Video Is Being Used To Replace “Via Satellite” Interviews

Posted by AGORACOM at 2:18 AM on Wednesday, November 24th, 2010

Latest Jim Rogers interview regarding Ireland financial mess is informative for investors – but provides me with even greater validation for AGORACOM Via Satellite.

If you’re a small-cap CEO, grab yourself a webcam and a Skype account as we step on the accelerator with this one .

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