The situation: A technology company that had been public for some time through several leadership transitions, had a stagnant stock price after it declined significantly post-IPO. The company had virtually no sell-side coverage and few institutional investors. The new executive team asked CGIR to re-evaluate IR-related processes and procedures, update messaging for transparency and accuracy, conduct speaker training and create a formal IR program.
The challenge: The company had been public for some time, and the stock price had declined and was stagnant. In addition, prior capital deployment decisions had confused investors regarding strategic direction. What was the company’s strategy? Its growth strategy? How long would it take to implement? What were the capital deployment priorities? What was the company doing to increase its presence with Wall Street.
The result: CGIR met with the executive team over a multi-day session to best understand the business, history, and perceived pitfalls. CGIR then gained feedback from the investment community regarding company history, performance, leadership and general perceptions. Marrying the two – the internal perspective with the external perspective – for the first time for this management team brought to light discrepancies in messaging that we quickly resolved. In addition, CGIR began to formalize an IR process, beginning with earnings. Soon after engagement, the CEO and CFO began leveraging CGIR for input regarding strategy and capital deployment ahead of Board meetings. In the first four months of working with the firm and after several earnings cycles that met expectations, the share price appreciated significantly and new investors began reaching out to the company.