“Any fool can buy a share, the hard part is selling!”
Very true however these days shareholder communication makes the decision whether to hold or fold slightly easier.
Small cap companies are driven by news and numbers released to trading communities of retail investors who dream of a 0700 RNS and live in fear of a so called speeding ticket.
The content is then discussed at length in stock specific telegram rooms before some start sharing their enthusiasm and spreading the word on X (Twitter.)
Market commentators and analysts such as Zak Mir publish summaries and oversight.
The CEO will often issue a comment with forward guidance and the share price will react accordingly.
Institutional investors will receive comments and perhaps a shareholder presentation from the corporate broker, and occasionally a meeting with the management.
Possibly one of the best examples of how a CEO’s enthusiasm and superior communication skills can turnaround an ailing company was Argo Blockchain (ARB). Using social media and very regular market updates via RNS, market friendly Peter Wall successfully embraced new and old investors and guided them through the last bitcoin halving and ensuring crypto bull market. Several millionaires were created as a result of the CEO steering shareholder enthusiasm through the new world of bitcoin mining.
Investment company KR1 (AQSE:KR1) took a while to catch on to the news hungry demands of retail investors keen on following the progress of their digital assets. But the extremely savvy directors took note and now produce monthly portfolio reports. This crypto equity is now in pole position for a future crypto rally and will no doubt attract new investors via its detailed shareholder communication strategy.
Branded retail companies such as Chill (CHLL) are constantly in the news and have an extremely well respected and engaging CEO. The loyal and enthusiastic shareholders are happy because they feel that they’re always kept in the loop.
Fintech companies have less news and therefore require more reassurance from the CEO and their board. Tap (TAP) perhaps should look to follow this example. Even though it has two CEOs, it relies mainly on shareholders including the likes of Saagar Ruparell and ThatMartiniGuy, putting in the effort in terms of spreading the good word. Having a stockbroker with a distribution arm would help the cause too. Given the latest USA expansion news this week, the time is ripe for a decent market push from the super-powered money app company.
These are hard times for small cap companies and their investors. Mutual respect is definitely a requirement to keep the lights on. This is achieved through regular communication from companies and their brokers. Snooze and we all lose.