August 21, 2013

Streetwise IR

“We’ve got 25 analysts. What new thing can we say to change investors’ minds?”

So lamented the IRO of a large household name this week. If everybody knows the same thing everywhere, how can you distinguish yourself? Tone of voice? Outfit? Teeth-whitening?

We live in the Age of When. It’s not what you know, but when you know it. For instance, Elmore Leonard died yesterday. I read nearly every book he wrote and my bookshelves before Kindle gave me one-finger page-turning were packed with the paper pulp Leonard crafted so artfully, redefining snappy street dialogue in fiction. You should read one if time permits. Cuba Libre is a favorite.

Word first went in a Tweet from his publisher that Leonard had died – which then spread around to media outlets and a New York Times alert that landed in my email spam folder.

WHEN has replaced WHAT. It’s a lesson for IR. If you set a goal to change your shareholder base by incorporating more value money, you’ll succeed if it precedes a crushing collapse in business fundamentals that routs growth holders, followed by a focus on cost controls and core drivers.

For how long are you a value story? The “what” is your value drivers. But the “when” drives on-base percentage.

I used Moneyball before. Brad Pitt starred as the cinematic Billy Bean, baseball’s Oakland As manager, who changed baseball by measuring new things. Before Bean, scouts looked for sluggers. Bean thought harder. How do you score runs? Get guys on base. Maybe we should be drafting guys that get on base rather than guys who hit balls hard. Now, every time a batter comes up in big league games, you’ll see on-base percentage – at-bats versus on-base.

Same for you in the IR chair. If you’re measuring success by meetings, you’re drafting bodies, not getting guys on base. Your story is your story is your story. Tell it, yes. But getting more of those folks in the future to buy shares and help you achieve your objectives – a fairly valued stock, a well-informed market – can be enhanced by WHEN you call them.

I think IR should redefine success measures away from owners to market-share. That’s what we do in business. But that’s a longer story (if you want to know more, ask me).

The best on-base-percentage is going to come if you target value money when your shares are at a discount to rational value, and if your target can build a meaningful position under two weeks. Investors can only buy about 10% of your daily volume without changing the economics of your market. If you have $10m of “daily dollar flow” – money volume in your stock – target investors with less than $1 billion under management. Otherwise, you’ll do a lot of whiffing.

Starting thinking this way and you’re a streetwise IR pro. Elmore Leonard would probably make you a character in a book called “Get Money.”

Share this article:
Facebook
Twitter
LinkedIn

Get the Latest News Deliverd to your Inbox

More posts

dreamstime m 167984305
September 9, 2026

ChargePoint (CHPT) traded 44 million shares Sep 3, almost twice its ledger of 24 million, and rose from around $5 to over $9. Yes, in...

dreamstime m 7424008
September 2, 2026

Soon we’ll be rocking around the clock.  Which raises the question: Does 24-hour trading foster capital formation? By the way, I’ve been invited to sit...

dreamstime m 14418923
August 26, 2026

Twenty-five lighters on the dresser, yessir, and I gotsta get paid. That’s what NVDA investors are saying today.  The ZZ Top (God rest Frank Beard)...

dreamstime m 138166
August 19, 2026

Earnings.  This is what the stock market is all about.  That’s what we’re told all day long by the financial media. And it would be...

dreamstime m 23642565
August 12, 2026

Would you take a coin flip as an outcome? I got to know a successful growth fund manager in the 1990s. Well. More than one!...

dreamstime m 19006712
August 5, 2026

Very slowly than all at once is how things tend to happen. It seems to be true in the stock market. A Demand/Supply view of...