Beautiful Store in the Desert (no not in Las Vegas)

So you have completed your fundamental and technical analysis of a stock and everything checked out. You bought it, but the stock isn’t going up; and nobody seems to care. Why? The answer is: There is no investment community visibility. No shareholder awareness. No one knows about the Company. Like Robert, a great micro-cap CEO said to me after I took his company public many years ago and compelled him to get on the road and meet with prospective investors, “having a great company that nobody knows about is like having a beautiful store in the desert.” Robert got it. He was on the road, attending every micro-cap and small cap conference that existed. He was a true road warrior, planes, trains and automobiles; and it paid off. Investors came to know Robert, like him [love him really], trust him and he put the operating results up on the board. The stock went up approximately 16 fold in a few years.

Institutional sponsorship, brokerage firm research coverage and all of the required components to develop investor awareness, require small cap and micro cap companies to hit the bricks physically and digitally, to make their company known. Conference presentations, email databases, outbound investor and analyst calling and video executive summaries to name a few, are what is required to develop investment community visibility. The companies who produce compelling operating results and create investor awareness, should cause your investment to create shareholder value. Volume is the fuel of price. Sentiment is the fuel of volume. Investment community visibility is the fuel of sentiment.

Until next week…

David N. Baker
Managing Principal
Mercadyne Fund Management LLC
6565 Spencer St., Suite 205
Las Vegas NV 89119
dnb@mercadyne.com
415.297.4749

By |2019-04-08T01:07:29+00:00February 28th, 2019|blog|0 Comments