On the Radar Screen: IR Advice for the Market Slide
Although folks didn't jump out of buildings the way they did in the 1930s, the decline of the market last week (which rebounded in one day with a 300-plus gain) was still headline news. And many investor relations specialists are probably still pulling some late nights and mulling over ways of dealing with this kind of explosive news.
And although this advice comes after the fact and we don't know when it'll be needed again, Ted Pincus, chairman of the Financial Relations Board and Michael Rosenblaum, board president, offer here some insight on how to deal with a declining market when no salve can heal the wound:
1. Focus on existing shareholders: a letter to existing shareholders, reinforcing your core messages, can make a major difference. For large holders, a faxed message or more aggressive approach (conference calls, meetings) can make a difference;
2. Update and redistribute messages: A plummeting stock price can turn a growth stock into a value play, which can open up fresh opportunities to court uncommitted investors.
Use an updated corporate profile, summary or fact sheets, analysts' presentations or outlook messages to stoke the fire;
3. Fill the vacuum: in an uncertain market, some companies pull back from communications, leaving a gap for those investors looking for new ideas. In turn, schedules aren't as tight, reporters get less pitches and overall communications decline. Be smart and use this time to fill the void.
4. Avoid the traps: A.) A share repurchase program can be a strong sign of support but it has its risks. For companies with relatively low liquidity, share repurchase can suggest greater transaction/trading costs in the future and create obstacles for institutions; B) Repricing is a "red flag" to institutional investors and must be handled with precision and sensitivity since it can become a strategic error; and C) Anti-takeover provisions have to be considered if the market's decline creates a period of unreasonable vulnerability.
(FRB, 312/266-7800)
Tools: Delahaye Provides Way of Looking at Tradeshow Impact
Corporate event managers, through The Delahaye Group Inc.'s FARsight service, can hone and better pair attendee preference and behavior with booth displays and activities.
Through a series of statistics (the correlation's designed to reveal the tactics that motivate attendee purchases), FARsight offers: visitor interest profiles; audience buying behavior; comparison of event venues; measurement benchmarks; changes in behavior; and recommendations about how to respond to trends. A program analysis for three to five events starts at $30,000. (Delahaye, 603/431-0111)
Advertising Agencies Network Launches Site About Marketing
With all the focus on integrated communications, this cyber venture might help give you a window into other communications disciplines: the International Network of Business Advertising Agencies, Cleveland, has launched http://www.inba.org to educate visitors about business-to-business marketing. Features include member profiles, case histories, marketing views, news and a "get-in-touch" area. (INBA, 440/446-1946)
Industry Moves
- The Kamber Group, New York, has formed a national practice group to handle PR surrounding large-scale litigation. The group will operate out of the firm's offices in Washington, D.C., and be headed by attorney James F. Haggerty, who also coheads the New York office. (The Kamber Group, 202/223-8700)
- Michael S. Sitrick, chairman and CEO of Sitrick And Company, has been elected to the board of directors of the Turnaround Management Association, an international organization made up of financial advisors, corporate executives, lawyers, judges, venture capitalists and financially burdened companies. This is the first time a PR executive has been named to the board. (Sitrick and Co., 310/788-2850)
D.C. Chapter of PRSA Surpasses N.Y. in Membership
The National Capital Chapter of PRSA is now the largest PRSA chapter in the nation, with 891 members, according to chapter president Page McMahon. The New York chapter recently reported 750 members. (Page McMahon, 301/320-8053)