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Details of our Retail Investor survey featured in IR Magazine

September 3, 2009

The September issue of IR Magazine has a nice recap on both our Retail Investor panel and the "Measuring Attitudes Toward Retail Investors" survey of our clientbase by Rivel Research. To expand on the IR Magazine piece, here are a few graphs from the survey. The number of recipients is 204.

How important are retail investors to the investor mix of your company?

Absolutely essential  9.3%
                             
Very important  21.6%
                             
Somewhat important  29.4%
                             
Not very important  31.4%
                             
Not important at all  8.3%
                             

 

 

 

 

Which of the following goals are best served by your company's constituency of retail shareholders?

They tend to be long-term oriented  34.8%
                             
Shareholder diversification  27.9%
                             
Reduced volatility  7.4%
                             
Other  29.9%
                             

 

 

 

Why do you solicit retail investors? (survey recipients could select multiple)

Build base of loyal shareholders  68.2%
                             
Investment thesis appeals to retail investors  50%
                             
 Company seeks to reduce volatility  36.4%
                             
Offset influence of institutional investors  22.7%
                             
No sell-side coverage 18.2%
                             
Offset defections among institutions  13.6%
                             
Reduced sell-side coverage  11.4%
                             

 

 

 

 

 


FROM IR MAGAZINE:

Before the financial crisis, institutional ownership had been gradually rising. This trend seems to have reversed in the meltdown, however, with retail investors providing buying support as institutions fled. But Peter Breen, managing director of the Vokser Group and chief strategist for BetterInvesting, is worried.

"There's a high probability that we could lose an entire generation of retail investor interest, he cautions. Today's college students are looking at their moms and dads being gutted by the downturn. If anything, they will be looking at mutual funds and exchange-traded funds, so it's important that IROs get out there and build interest in individual stocks."

 

FROM OUR SURVEY: 

We asked the survey respondents that don't seek out Main Street... "Why don?t you solicit retail investors?" 
53.1% stated "We don't have the internal resources."

If you are considering adding retail into your shareholder mix ( for all or some of the reasons above), we have a very clever solution that should not strain internal resources. It's integrated ( aka: a check box ) when you send out your press releases. Also, as I comment back to Anonymous in the comments section on this previous post, if you'd like specifics about Retail Investor Targeting - feel free to contact me directly.

Have a nice day.


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About This Blog
Bradley H. Smith actively discusses product ideas and best practices in shareholder communications in context to their impact on investor relations and public relations departments. A frequent media pundit and panelist on topics including corporate transparency and shareholder communications, Bradley has been in investor relations for nine years. This is his first blog and he openly admits it will be "slightly" biased toward his products - without being disrespectful to his competitors.

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Bradley Smith

The views and opinions published by Bradley H. Smith, a Director at NASDAQ OMX, are his own and do not necessarily reflect the views of NASDAQ OMX.

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