Common issues for the heads of listed entities
“I’ve found I can’t really influence investor or market behaviour. Therefore, I’ll just concentrate on delivering the results and they’ll speak for themselves”
If only! The force of logic doesn’t always win out and there is a huge amount of clutter that can conspire against wider awareness of good results.
The reality is you can influence investor behaviour and CHANNEL can help you by developing a sustainable strategy, tactics and key messages to help your message cuts through.
“I can’t get to grips with what the market really thinks of us – I get a lot of conflicting and contradictory feedback”
This is fairly common and, rightly or wrongly, many CEOs feel that analysts fail to understand what the company is doing and why.
Addressing that perceived shortcoming is not as easy as deciding what you want to tell these market influencers – at the outset, it is fundamentally important to know what they’re thinking and why. CHANNEL has a well-established reputation for delivering insightful market perception studies because of its access to analysts and its ability not simply to report what is said, but, importantly, what is meant. These studies comprehensively examine the primary perceptions of broking analysts, current institutional shareholders, past institutional shareholders and other institutional investors. The outcome for clients is clarity in determining how communications may need to change or develop to ensure a better-informed market.
“I already know what the market thinks of us – I don’t need to ask”
There have been many CEOs shocked to find that, in this respect, they were wrong. There is a big difference between perceptions based on anecdotal observations and comment and what is said in an arm’s length survey where responses are unattributed.
Through its well-developed perception studies CHANNEL’s team will deliver to you independent and unfiltered feedback from the investment community.
“I find analysts’ briefings difficult – they sometimes focus on issues I think are not important or demand information which I think is unreasonable”
We know and understand the feeling but analysts will rightly cover any and all information that emerges both as part of compliance and in the course of doing business. Sometimes, they’re just curious.
The key is anticipation and understanding how certain information, or the way in which it is presented, may be seen or interpreted by both investors and analysts.
CHANNEL’s advisers have themselves been analysts and can help both in shaping the way you present and in anticipating likely questions and interpretation. And, without sacrificing transparency, we can also provide advice on where to draw a line in briefings and presentations so that you do not stray into unreasonable territory. The outcome is a more confident and positive presentation and, importantly, no surprises with which it may be difficult to deal at short notice.
“I struggled in the AGM – the questions came from everywhere and destroyed the structure of what I had prepared. It was not a big success”
Truthfully, who was to blame and what was it that led to the AGM descending into an unstructured hour?
CHANNEL, with its comprehensive experience in preparing the heads of listed entities, can provide the advice and training that can maximise retention of AGM control and structure, thus either avoiding or minimizing the potential for poor outcomes.
“I don’t really know who is investing in our company”
Share registers can change rapidly and the story they tell is not always clear.
A substantial investor on your register who loses faith in the company’s ability to perform may sell, triggering a share price slide. Such sentiment can be difficult to counter even when the lack of faith is not warranted.
Knowing who’s made significant investments enables sharp, focused communication to reinforce support.
CHANNEL can quickly and efficiently deliver this information to you.
“I’m not a good presenter and I think this may reflect poorly on the company and its capability”
In presentations, substance and performance are identical twins – one without the other creates an isolated and vulnerable orphan.
Do I begin at the beginning and finish at the end? Do I pre-empt issues and questions or wait to deal with them later? How many slides is enough and how much information should be on each? What if I lose my thread?
These are real issues and challenges but within a secure and reassuring environment CHANNEL offers unequalled coaching skills to instill confidence, greater certainty and better outcomes.
“I take a lot of care over our ASX announcements but they never seem to have any impact on share price”
Yes, but how much visibility do you really enjoy? Is the extent of your communication no more than what’s required under disclosure rules, supplemented annually with an AGM and annual report when what is really required is a thorough, strategic investor relations program?
Market awareness of a company is built over time through a sustained effort that surpasses the predictable milestone announcements relating to results and outlook.
CHANNEL’s experts are skilled at developing, managing and implementing comprehensive programs involving a wide range of communications to reach all key stakeholders.
“I actually take many calls from market participants who seem interested in what I have to say but I rarely see any impact”
Why are they calling? There can be many reasons – there may well be a genuine interest in investing but fund managers can have long lead times between first taking an interest and eventually making a decision to invest. Or, the caller may be using you to gather market intelligence.
CHANNEL – with its finger on the pulse of the market – can help you understand what’s going on and why and, with that understanding, help you develop and implement tailored investor relations programs.
“How do I get media coverage for my announcements?”
In truth, media coverage cannot be guaranteed – many things can influence whether your announcement is covered.
But CHANNEL understands that journalists want news and can help you by distilling sometimes long and comprehensive ASX announcements to the most salient facts in a more concisely written media release and then distribute it for you.