150 likes | 233 Views
Sponsored Research a strategic tool for investor communications. Gabriel Didham CFA , Managing Director www.ObjectiveCapital.com. Research is the language of Investors. Research defines how the market understands your investment story. … and it is Research that drives
E N D
Sponsored Researcha strategic tool for investor communications Gabriel Didham CFA, Managing Director www.ObjectiveCapital.com
Research is the language of Investors
Research defines how the market understands your investment story
… and it is Research that drives your relationship with the capital markets
Of professional investors... • 93% read pre-IPO research • 53% read research before meeting management
For private investors … Source: Communicate Research
Research makes a difference ... • Researched companies can have up to double the market valuation of un-researched companies in the same industry • Increased research coverage can double average trading volumes • Trading costs can be as much as 10% of the share price on under research companies
… for a company and its shareholders A lack of research means: • raising capital is more difficult and expensive • lack of knowledge => higher trading costs => reduced liquidity • lower share price Up to 80% of quoted companies could benefit from more research
The issue is how to get research coverage • Companies have traditionally relied on brokers and investment banks • But for smaller companies: • brokers’ fragmented distribution means multiple coverage is needed • whole segments of the market are untouched • regulation means you need separate coverage in each market • and widely known to only be economic for brokers when linked to investment banking
So how can Sponsored Research solve these problems?
High quality Sponsored Research delivers: • Reach: • professional investors • private investors • buy side • international • industry • debt and equity • Quality coverage: • supports trading in your stock • corporate transactions • supports your other advisors • and wide-ranging generation of business opportunities
High quality Sponsored Research demonstrates: • Commitment to shareholders • Commitment to transparency
but most importantly… It builds a “Strategic Relationship” with the capital markets a relationship that supports a company now …..and as it grows