
[NOTE – Though Some Data Is Specific To The Resources Industry, online research and usage data is applicable to all small-cap companies]
Throughout the first half of 2008, AGORACOM surveyed over 850 small-cap retail investors at each of the following 4 major resources conferences:
- Prospectors and Developers Association of Canada (PDAC)
- Cambridge Conference Vancouver (January)
- Cambridge Conference Vancouver (June)
- Cambridge Conference Calgary
The purpose of the survey was to gain further insight into the online investing, research and community habits of small-cap and micro-cap investors. The surveys were conducted offline by design to avoid skewing of the results.
This survey represents a continuing series of surveys from each of these events since January of 2007. The results from each individual conference are posted on the AGORACOM blog within 30 days. In addition, the consolidated survey results are posted to our blog in early July. Both the individual and consolidated survey results can be found on the AGORACOM blog for you to review.
Given the speed at which the internet is moving and impacting investor relations, the results of these surveys are invaluable to CEO’s and investor relations departments of small-cap and micro-cap metals and mining companies across North America.
This is especially true for companies headed by older, less agile management teams that continue to overemphasize the value of traditional investor relations and under estimate the importance of online investor relations. Investors of such companies should also take note of these results and relay them to management.
AGORACOM has always understood the power and cost-efficiencies of search engine marketing, community building and multi-media communications. However, in order to go beyond theory and bias, we had to objectively prove it via empirical evidence.
SURVEY RESULTS
Upon reviewing the results and comparing them to 2007, we can unequivocally conclude that online research, collaboration and discussion are heavily utilized by small-cap investors and dramatically increasing. Frankly, the results were more dramatic than even we imagined and clearly point to the overwhelming need for an online IR strategy that goes beyond your website.
With approximately 850 investors surveyed, we were able to extract some extremely valuable information that will be of great importance to small-cap and micro-cap companies. The information will have different implications for each one of you, depending on your primary metal/mineral, market capitalization and online strategy. As such, though I’ve provided some tertiary comments following some of the results below, the final analysis will be your own. To this end, we’re happy to provide you with the following results:
HIGHLIGHTS
- 81% of Investors Prefer Small-Cap Resource Companies over Large-Cap.
- 48.4% of Investors were most Bullish on Gold compared to other minerals and metals.
- 73% of Investors Conduct the Majority of their Research (75%+) into New Stocks Online. This is a dramatic 18.65% increase over 67% of respondents in 2007 and serves as proof positive that an online investor relations program is critical if you want to reach new investors.
- 48% of Investors Conduct All of their Research (95%+) into New Stocks Online. No online IR program means you immediately miss out on 48% of all investors.
- 60% of Investors Use Discussion Forums For Information and/or Research.
- AGORACOM brand recognition amongst retail investors has risen by 360% over the same period last year. With 95% of our market budget allocated online, we are an actual case study about the power of online marketing to small-cap investors.
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