What Is Financial PR
Almost all publicly traded companies in the developed capital markets use a Financial PR firm to communicate with its message and promoting the company and its prospects to the investment community. It is the primary part of the stock market life for all listed companies to enhance shareholder value by communicating with existing shareholders, potential investors, analysts, journalists and now days, the ever growing social media arena.
It is an extremely specialized field where experience of decades is required. One wrong move can make the price of the stock dwindle and the shareholder value goes down. Mind And Markets, Inc is Pakistan’s first and only Financial PR firm with over two decades of experience from Wall Street’s best listed companies. We know this business better than anybody else in Pakistan.
One of the biggest misconceptions that exist amongst the management of publicly traded companies is that only analyst coverage is required to enhance shareholder value. Studies have shown that analyst’s coverage is at the most 32% of the whole equation. The rest, 68% is where the real share price enhancement comes from and that includes:
1) Crisis Communication Issues
2) Analyst Liaison
3) Gathering Analysts forecasts and establishing consensus forecast
4) Shareholder Analysis
5) Corporate Governance Issues
6) Investor Targeting
7) Peer Monitoring and Analysis
8) Sentiment and Investor perception Management and Audit
9) Business and Financial Media Strategy
11) In-house training of employees of Publicly traded companies
12) An ever ready package of the most up-to-date information and Investor communication material.
13) Sentiment Analysis regarding the company stock.
Why Is It Necessary for Your Company to Work with Us?
Mind And Markets understands this business and its founder has successfully handled over a hundred companies in his Wall Street career as the first Muslim and the only Pakistani to have established a full service investment bank by the time he was 29 years of age. Investment banking runs in our blood.
As we are about to enter the Emerging Markets status, PSX will become a hunting ground for investors to put their money into. Out of the 600 listed companies, only the companies whose message is being communicated to the masses of investors and in a systematic manner will attract capital thus enhancing its share price. We understand the psyche of Emerging Markets investors and have successfully invested in companies throughout two decades. We understand that a public listed company’s value depends very much on the way information is updated to the investment community and it is an ongoing responsibility of a long term nature, especially in this age of social media where information about the company travels at speed of light and can affect the stock price either way.
Liquidity & Fair Valuation
Two things of the utmost importance for all shareholders and the management itself is liquidity and fair value. It is our responsibility at Mind and Markets, Inc. to bring this to the table. Frequency of trading in the shares only enhances when the general investment community is absolutely aware of the activities of the company, its future plans, the progress of those plans, potential for growth compared to its peers and many other things.
Managing expectations is the most crucial aspect of fair valuation of your company which will ultimately reflect in your share price. This is an art which is acquired over decades and by being present in the most developed markets. Company’s current and future performance has to reflect as beneficial to the portfolio in the minds of potential and current investors.
Balancing The Act Between What You Want To Communicate And What The Regulators Will Allow.
One of the most important aspects of communication management in capital markets lies between the two lines: One, what you want to reveal and Two, What the authorities allow you to reveal.
We understand clearly that just hiring a Financial PR firm, whose expertise is not based on proven track record of decades, will not bring prosperity to the company in capital markets. Mind And Markets, Inc knows that in addition to PR activities, we need to communicate to the investors, the overall economic situation, and confidence in its management team, company fundamentals, and availability of shares for the investors. How a company is perceived, funded, traded by the investors in the market will have a direct relation to its stock price. We understand that for quoted companies, it’s a balance that we have to maintain and that balance is about keeping the existing investors updated to the minute and continuously attracting new investors.
One Rupee Fluctuation in Stock Price could be worth hundreds of Millions to your Company
The biggest beneficiary of the upward movement in the price of the stock or vice versa is the company itself. You as a sponsor of the company usually own most number of shares compared to any individual retail or institutional client. A client can sell his position and walk away, but you as a sponsor of the company are married to the company’s long term growth and its share price. The Do’s and Don’ts of Capital PR will determine the fair value of the company. So many times maintaining a current price in a downward market trend is more important that price enhancement. The more confidence your investors have in your company and its long term prospects, the less panicky they will be even in a downward market. It becomes our duty, at Mind And Markets, Inc. to enhance, develop and maintain that confidence even in a negative market environment by preventing the investors and the sponsors from losing faith in their shareholding.