Last week’s discussion of Goldman Sachs forgoing traditional earnings release dissemination brought out the semi-annual conversation of what the investor relations niche labels as “web disclosure.” Specifically, this is in reference to the 2008 and 2013 SEC guidance regarding 2000’s Reg FD. A company is allowed to use their own owned media (corporate website and social media) as a regulatory disclosure media if their owned media(s) are a “recognized channel.”
With clear awareness of the bias this blog has towards using newswires, KSCA managing partner Jeffrey Goldberger’s blog conveyed the balanced view: one size does not fit all.
“That said, communicating like Goldman Sachs does not make sense for companies that lack Goldman’s brand permission.
The challenge for many of the thousands of publicly-traded equities is that as hard as they try (and try they do), they will never achieve the brand or shareholder recognition of Goldman Sachs. Many of these companies struggle each and every day to gain traction with retail and institutional investors and are in no position to quickly follow in the steps of Goldman. They rely—and rightly so—on the broad reach of wire services to share announcements with otherwise inaccessible audiences.
The idea that micro-cap or small-cap companies could have the power to dictate how investors receive their news is unrealistic.”
The above blog quote is not a new byte Jeffrey created for the GS discussion. It’s an underlying perspective KSCA use for clients, particularly smaller companies. Below is a brief snippet from a Fall 2014 webinar regarding the content investors want and Jeffrey’s guidance on how small-caps must behave.
Every company has their own marketing, public relations and investors relations strategy. The tools will follow that strategy. One size does not fit all.
THIS WHITEPAPER has great detail on the content investors want.