Winner: Diodes & CCG Investor Relations
Campaign: "Sell-Side Analyst Outreach for Diodes"
The semiconductor industry was still limping in 2005 from the after-effects of the 2001 economic downturn, which had devastated industries of all shapes and sizes. Diodes,
Inc., a leading manufacturer of semiconductor products, had suffered financial losses and still faced difficulties in attracting sell- and buy-side analysts, institutional
investors and retail brokers.
To combat the problem before the blow to business became irreversible, CCG Investor Relations put the semiconductor space under the microscope to identify key peer groups and
research analysts, as they were a key variable in the equation of success. This identification process focused on competitors in the semiconductor space and in the investment
space as a whole; all in all, 36 key analysts rose to the top of the pack as both influential and relevant.
Once they were armed with an understanding of their target analysts, the communications team met with Diodes management to help refocus investment appeals and growth
opportunities. This presented the team with a chance to reintroduce Diodes to the analyst community with a fresh take on the company's investment story, while also announcing a
new roster of proprietary products; focusing on cost leadership in manufacturing; and building sales presence in Asia. The PR team wove this success story into a narrative that
was told through telephone and e-mail outreach; it also counseled Diodes to change its listing to NASDAQ so it would be aligned with other leading technology companies.
The layered strategy worked thanks to the team's customized outreach to each targeted analyst, as well as the quarterly conference calls to keep Diodes top-of-mind among the
industry leaders. The initiative's intriguing strategy (on a $7,000 budget) resulted in an overwhelming success: Institutional ownership increased from 20 percent to nearly 87
percent, the stock now trades in the upper range of earnings multiples relative to its peers, and 10 of the targeted analysts initiated coverage of Diodes - all hard-won battles
in turbulent times.