Very nice article in the May issue of NIRI’s IR Alert entitled “Where Has Retail Gone and Why Should You Care?”
Rule 452 has brought Retail Investors top-of-mind for many public companies that, for their own strategies, did not find Main Street germane. Small cap (and lower) companies appreciate Retail Investors’ ability to “move the needle,” but the mid to the mega-cap tended to focus in the institutional investor. And realistically so… generally speaking, Investor Relations departments are lean machines – subsequently, they are forced to focus. They must. If you view an IRO as a sales person then it’s good business for “sales” to laser in on the prospect that will deliver the best return. That said, diversifying is good, and now more than ever.
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Quoting the article:
As shareholder communications to Retail Investors is very germane to my bread & butter, I was enthused by the article. What encouraged me is that discussions about Retail Investors are occurring again – and in a positive vein. NIRI members skew to the larger companies – thus our MUNCmedia "Cheeky Button” message for the 2010 Annual Conference should engage great dialogue in San Diego.
Did I mention we’re having beer tasting in our booth? That should engage great dialogue too.
Have a great day.