Directors

Archi_Bald

This would never fly as none of the Cxx folks or Directors would have any interest in this, nor could they justify the expense. It will be far cheaper, and vastly more productive for their companies to schmooze City Analysts, Fund Managers and large scale investors (which is why they do exactly that).

If it would be considered beneficial by any of them, they'd long have launched such sessions as the technology to support them has been around for donkey years now.

l.o.jones8686

dunstonh - Those presentations are to current shareholders. This communication will not cause private further investors to invest, which listed companies need or their liquidity is affected.

bowlhead - what you are referring to is the results roadshow, which is different to the investor/PCB roadshows designed to create more awareness and interest in the stock. Most companies that are listed spend a material amount of money speaking to investors via third parties, for example they pay research houses like Edison to publish research on them to assist in getting their investment story into the market.

My point is that I have made substantial returns speaking with CEOs, so why don't they just speak to investors directly?

Out of interest, do you invest in the equity markets? If so, if you could speak to directors directly, would you?

l.o.jones8686

AndyT. There are many companies listed on the LSE. Most are not multi-billion dollar companies. All companies, particularly smaller ones, need access to investors for the purpose of creating liquidity.

Why couldn't a CEO, on a quarterly basis, hold a video conference where investors could log on and hear the CEO speak. Then some investors could submit questions virtually and some of these questions discussed. There are plenty of companies that provide the technology to do this.

I just find it strange that you can invest, for example £2,000/£3,000/£10,000 into a company, but never get the opportunity to speak or even see management.

l.o.jones8686

Hi Somethingcorporate. See the above post.

l.o.jones8686

Hi Archibald. There would be virtually no cost in hosting a video call.

It will be far cheaper, and vastly more productive for their companies to schmooze City Analysts, Fund Managers and large scale investors (which is why they do exactly that).

This is exactly my point, most CEOs speak to investors via third parties, like analysts. Why don't they just speak to investors directly?

dunstonh

dunstonh - Those presentations are to current shareholders. This communication will not cause private further investors to invest, which listed companies need or their liquidity is affected.

If you are willing to invest around 20% in the company then they will speak with you. If you are peanuts investor then they have better things to do with their time than waste it on you.

I just find it strange that you can invest, for example £2,000/£3,000/£10,000 into a company, but never get the opportunity to speak or even see management.

Peanuts

l.o.jones8686

Dunstonh on your reference that it's peanuts. I know several CEOs and their companies have very limited liquidity. With these types of illiquid companies, that could be worth for example £100 million, an investor selling £10,000 can move their share price by 5%, which wipes of £5 million pound of the company. There could be an argument that these investments are not peanuts and can be quite influential. Hence why a CEO should want to engage with this market.

Dunstonh, you do seem to know a lot about this space. Do you invest at all?

Archi_Bald

l.o.jones8686 wrote: »

There would be virtually no cost in hosting a video call.

This statement shows that you have little/no appreciation how an Executive works.

le_loup

C'mon Mr Jones, get to the money shot. I can't wait all day.

atush

Archi_Bald wrote: »

This statement shows that you have little/no appreciation how an Executive works.

nor the charge out/expense rates of directors. If the company is worth 1Billion, and the CEO makes millions per year, what would that one hour cost to produce?

5-10 meetings plus the one hour session, scripting/coaching, styling, production costs, legal costs. The cost would be substantial really.