Investor Relations

92INVESTOR RELATIONSIn other words, making information clear and accessible is in fact a way togenerate more positive opinion on the stock.When it comes to content, quality Investor Relations should be thoroughand meet all of the criteria outlined above. Investor Relation messagesshould be as follows: Objective. Bad news should not be hidden, and press releasesand annual reports should describe difficulties with objectivity andhumility. A degree of frankness and integrity will always pay off in thelong term. Informative. Issuers should bear in mind at all times that theirInvestor Relations target audiences who need not necessarily know muchabout the sector or the company itself. This means that if a press releaseannounces that earnings are in line with guidance, it should also say whatthis guidance was. Bear in mind that every communication is an opportunityto raise awareness and trigger interest for your company. Lastly, announcements should reflect the company’s overall strategy.For instance, each earnings release should be presented as a step towardthe achievement of goals. The number of updates given, on the progresstoward this goal, will depend on whether the targets in question cover thecurrent year or several years. For instance, you do not necessarily need toput your quarterly performance in the perspective of your five-year strategicplan!As popular as electronic communication has become, it will not replacemeetings with executives or the publication of company documents. As theyfamiliarize themselves with the expectations—or habits or requirements—ofeach type of audience, IROs will realize thatcertain nonspecialized fund managers prefer to be invited to publicmeetings to hear the questions asked by those with more specific expertise,and in particular the sell-side analysts;institutional investors that are swamped with e-mail may refuse toreceive all of a company’s press releases but will, on the other hand,expect its Web site to be well designed and regularly updated;analysts and investors might be willing to participate in the same fieldtrip but will not appreciate the presence of journalists. It is in the interestof issuers to plan separate outings;the press (online or offline) is still the best way to reach retail investorsand build the company’s reputation. This is particularly important formidcaps.