Virtual investor conferences can provide a cost-effective method of investor engagement to 'get eyes on your stock,' especially for companies with limited exposure, time and resources, according to one expert.
Those challenges - budget, time and exposure - are especially pronounced at small and micro-cap companies that have no IR team, Jason Paltrowitz, executive vice president at OTC Markets, tells IR Magazine.
He says virtual investor conferences – online forums – allow micro-cap and small-cap companies to interact directly with individual and institutional investors, advisers and analysts through live online webcast presentations.
Paltrowitz notes that virtual conferences allow CEOs to do a roadshow or IR conference from their desk and have access to a significantly larger number of investors.
‘When small and micro-cap companies are doing a roadshow, they are not really seeing retail and family offices. So virtual conferences open them up to [engaging with] a significantly larger pool of investors that [could potentially] buy 100, 500 or 1,000 shares that will feed into [their growth].
‘This makes small and micro-cap companies more attractive, especially when it comes to targeting institutional investors because the [larger investors] want to see volume going through their stocks so they know there is liquidity to buy and sell.’
Paltrowitz further advises on best practice recommendations for getting the most out of virtual investor conferences. He says they should not be seen as a one-off exercise once completed, but rather used as an opportunity to grow a company’s network of future potential investors.
‘Treat [virtual conferences] as you would a live in-person investor presentation: take the time to think about how you would tell your story and get feedback,’ he says. ‘Following the presentation, we provide metrics and give the names and contact details of investors [involved in the conference].’
His comments follow OTC Markets’ recent purchase of an online investor conference series from PR Newswire. As part of the deal, John Viglotti joins from PR Newswire as senior vice president of investor access.
Paltrowitz says the deal was not in response to Mifid II, but notes that the regulation does ‘play a role on the periphery’.
‘Even for large-cap companies, it’s just getting harder and harder to get eyes on your stock,’ he states. ‘Part of that certainly is because of the research changes Mifid II has caused and part of it has become simply the way the market currently works.’
Editor's note: this story was updated for content on January 18.