CHAPTER 17 Targeting the Audience

With the company’s message defined and the complicated issues surrounding

guidance decided upon, its time to target analysts and investors.

UNDERSTANDING THE STREET

When IR targets the buy-side and the sell-side, it should zero-in on the analysts

who cover the company’s industry or peers, and the portfolio managers

that buy similar stocks. The initial investigation should start wide, then narrow

in on a specific group.

In the spirit of casting the widest initial net, IR should pull together the

names of all sell- and buy-side analysts in the comp group/sector and compile

them into an email distribution list. Though the list will change from

quarter to quarter, it’s a good basis for ongoing communications. Even if the

company has a small market cap and three of the analysts in the sector only

follow mega-cap stocks, the mega-analysts should be put on the list. They

won’t cover the company or survive the next round of targeting, but IR

wants those analysts to be aware of the company. It may lead to a dialog

someday, as the company grows. IR should put anyone who’s relevant on

that distribution list because the incremental cost in time and money is virtually

zero.

TARGETING THE BUY-SIDE

To discover its own shareholders, IR can comb through any number of databases

and create an Institutional Holders Report, which essentially measures

the buy-side and shows the value and percentage change in stock held by the

largest institutional investors. A large chunk of smaller-cap stocks are usually

held by just a few dozen institutional investors, and their stakes, as a

number of shares and as a percentage of the company’s total outstanding

shares, are publicly available.

After discovering the company’s top shareholders, IR should run a peer

analysis and identify the top shareholders of its comp base. This cross-reference

of ownership puts the pieces of the puzzle into perspective. If an institution

does not own the company’s stock, but is buying many other companies

in the sector, there is an opportunity to target this institution as a

potential buyer.

In addition to just knowing whether or not the buy-side institution owns

the company’s stock, IR must determine the following about the institution:

Amount of capital being managed

Investment style, for example, growth or value investor

Portfolio activity, specifically as it relates to the company’s industry (are

they buyers or sellers during any given quarter?)

With that information in hand, IR can zero in on the right buy-side institutions

and connect management with the right PMs. Without that information,

IR is guessing, the entire effort is compromised, and the time and

money spent visiting the wrong institutions can be a complete waste.

As a basic example, let’s take a restaurant chain we’ll call The Bubble

Factory. Table 17.1 lists the large institutional investors and their ownership

in The Bubble Factory and the Bubble Factory’s Peer Group: California

Pizza Kitchen Inc. (CPKI), Red Robin Gourmet Burger (RRGB), and PF

Chang’s China Bistro, Inc. (PFCB).

It’s obvious because of the representative ownership in the other companies

in this peer group that a few large institutions could own more of The

Bubble Factory.

When it comes to approaching the specific funds, IR should deliver, in

advance, a one-page profile of the institution which is available from certain

databases. As an example, if The Bubble Factory were to meet with Baron

Asset Management, they should know some basic information, as shown in

Figure 17.1.

TARGETING THE ANALYSTS

In terms of measuring the sell-side, the IR team can tabulate trading volume

in the stock by investment bank to see which firms are trading the most

TABLE 17.1 Institutional Ownership in Peer Group

Equity

Institution Name Assets CPKI RRGB Bubble PFCB Total

Fidelity Management

& Research Co. 552.41 $22,770,800 $27,596,712 $5,009,611 $181,624,203 $237,001,326

Capital Guardian

Trust Co. 139 $54,913,000 $33,138,822 $ 88,051,822

American Century

Investments 67.132 $86,503,199 $86,503,199

Forstmann-Leff

Associates 2.955 $47,725,681 $27,313,477 $75,039,158

Westfield Capital

Management 3.5721 $74,101,940 $74,101,940

T. Rowe Price

Associates, Inc. 135.5 $11,942,304 $58,938,072 $70,880,376

Barclays Global

Investors, N.A. 760 $9,576,320 $8,132,147 $45,156,289 $62,864,756

AIM Management

Group, Inc. 60.365 $60,075,756 $60,075,756

Strong Capital

Management, Inc. 20.54 $22,435,640 $9,724,265 $51,498 $20,982,971 $53,194,374

Source: Bigdough.com

BARON CAPITAL GROUP INC.

Reported Equity Assets (U.S. $B): 6.951

Inst. Qtr. Commissions: $2,511,706 @ 0.05/Share

Reported Commissions: $9,608,000

Institution Type: Investment Advisor

Market Cap: Small-Cap, Mid-Cap

Styles: Value and Theme

Average P/E: Low

Average Yield: Low

Portfolio Turnover: Very Low

Asset Allocation: 100% Stocks

Overview

Baron Capital manages the Baron family of mutual funds, as well as separate

equity portfolios. The firm is primarily a small/mid-cap theme-oriented investor

that looks for stocks with growth characteristics with a value orientation. Baron

defines small-cap as those with market caps between $100 million and $1.5

billion and mid-cap stocks as those with market caps between $1.5 billion and $5

billion.

Strategy

The firm begins its investment approach with a top-down screen to identify what it

calls “sunrise” industry sectors which are sectors expected to benefit from social

trends and demographic changes. Baron then follows this with bottom-up

research seeking U.S. stocks with: (a) high incremental returns on investment; (b)

undervalued or unrecognized assets with appreciation potential of 50% or greater

in the next two or three years; and (c) significant positive cash flows. The firm

prefers meeting with management prior to stock purchase and often maintains

that relationship after the purchase is completed. Baron Capital conducts all

research in-house. The asset allocation for the firm is 100% equity.

Supplemental Information

Baron Capital Group, Inc. is the holding company for BAMCO, Incorporated and

Baron Capital Management, Incorporated. BAMCO is the investment advisor to

the Baron Funds. Baron Capital manages portfolios for individuals and

institutions. The firm’s 13F which is filed under the name BAMCO, Incorporated

reflects equity holdings for the mutual funds.

FIGURE 17.1 Baron’s Profile

Targeting the Audience 141

FIGURE 17.1 (continued)

Security Industry

Name Name Value Shares % Held % Port Qtr End

CAKE Restaurants

Cheesecake Factory Inc Com $159.3M 3,456,700 6.6742% 2.292% 12/31/03

KKD Restaurants

Krispy Kreme Doughnuts Inc $120.1M 3,497,800 5.7328% 1.728% 12/31/03

COM

PNRA Restaurants

Panera Bread Co Cl A $42.1M 1,083,550 3.8137% 0.606% 12/31/03

PFCB Restaurants

PF Changs China Bistro Inc Com $20.2M 401,000 1.2335% 0.290% 12/31/03

CKR Restaurants

Cke Restaurants Inc Com $17.3M 1,750,000 3.0375% 0.249% 12/31/03

CPKI Restaurants

California Pizza Kitchen Inc Com $13.0M 650,000 3.4074% 0.187% 12/31/03

Source: Used with permission from Bigdough.com

stock of the company. A measure of each analyst’s knowledge is often the

ability to sell an idea to the buy-side, and the firm’s willingness to back that

investment idea with capital on the trading desk.

IR should know the following about an analyst:

Coverage universe

All ratings within that universe

History of recommendations

Average market cap the analyst covers

Preferences

In this selection process, the most important thing for IR to know is

who matches up best with whom. Analyst support is not necessarily a numbers

game. It is a strategic effort that segments and filters until a narrow

group of high-impact prospects emerges. IR should assemble all analysts

who cover the sector, evaluate their coverage universes, and make a decision

who to target.

No other medium penetrates the buy-side and the media with as much

credibility and substance as the sell-side’s equity analyst. Despite all the negative

publicity, institutional investors read a substantial amount of sell-side

research. They may not always value the exact investment rating, but they

do pay attention to financial modeling and content.

The result of coverage is awareness, access, and credibility—all of which

generates interest that, one hopes, creates demand for the stock. And the research

report can go beyond the buy-side and the media.

Other sell-side firms often read other firm’s research, which sometimes

can lead them to call the company and possibly initiate research of their

own. The industry, including competitors, suppliers, vendors, and customers,

may also read this research, and it gives the company tremendous

third-party validation and endorsement. Finally, research reaches employees

and validates their mission which helps the overall company—more so when

it’s positive, but a negative research report can also be a huge motivator.

We’ve seen negative reports circulated to employees and tacked up on their

walls as a reminder to work even harder. In either case, research coverage

can lead to a very prosperous cycle (see Figure 17.2):

This cycle interrelates with guidance and can break down if guidance is

ignored. If guidance exists, however, and it’s conservative, the company is

positioned to perform up to expectations or to outperform those expectations.

Guidance also attracts the sell-side and increases the odds of positive

research reports as earnings targets are met. Therefore, both guidance and

targeting work together in this stage of pre-delivery to increase the odds that everyone involved in the process, from management to the analyst, is positioned

for success.

THE RESEARCH HURDLE

Even before the consolidation of the investment banks, getting coverage was

never easy. While there are hundreds of analysts, there are thousands of publicly

traded companies. Additionally, most institutional investors will only

invest in companies with large market capitalizations, that is, valuations that

are over $1 billion. Thus, if the larger sell-side firms want to generate trading

commissions, then their research should probably cover the companies

with large market capitalizations. That approach potentially leaves thousands

of publicly traded companies with no coverage.

That explains why many smaller companies don’t pursue analysts at

larger investment banks. However, many investors buy stock in companies

with market capitalizations under $1 billion. In fact, these investors specifically

seek out the mid-, small-, and micro-cap companies. As a result, many

sell-side firms work with these investors and these companies, and there are

research analysts who provide coverage. Finding these analysts is important

to a good IR effort because the benefits are too worthwhile to ignore.

Some IR professionals do not have a full appreciation for how tough an

analyst’s job is. IR often lacks a first-hand understanding of what analysts

do on a daily basis, how they are paid, and what they are looking for from

IR and from management. In preparing for delivery, IR needs to understand

these factors, because they can make the act of approaching the analyst simpler

and more effective.

Research report gets

issued or institutions read

exsisting research.

Management goes on road

show with analyst. Sales

people usually set up meeting.

Sales force calls institutions after

the meeting or the issuance of a

report to seek an order for the

purchase of shares.

FIGURE 17.2 The Virtuous Cycle of Research

THE ANALYST’S MOTIVATION AND INCENTIVE

An analyst gets paid to make good stock picks and to generate trading commissions

for the firm. There are several reasons that portfolio managers run

their commissions through certain banks, including the analyst and institutional

salesperson’s relationship with the portfolio manager; the analyst’s

knowledge on any given stock; and, certainly, good trade execution. Analysts

must also create access to management teams, providing the buy-side

with an opportunity to “hear the story from the horse’s mouth.” Therefore,

good research based on a superior industry understanding coupled with the

ability to deliver management teams to the buy-side is key. IR and management

must understand this when they target and approach any analyst.

THE MIND, AND DAY, OF AN ANALYST

Sell-side analysts overwhelmingly are absorbed in one industry or sector.

They know the industry’s history, the current situation, the dynamics and the

players, and they know it all in-depth because they live and breathe their

coverage universe every hour of every day. To be the expert, and more importantly,

to get paid, analysts not only must know their sectors well, they

also have to know them better than anyone else.

A day in the life of the analyst is spent delving into the intricacies of a

company and an industry, which means due diligence, analysis and spreadsheets,

conferences, traveling, talking to CEOs, touring factories and kicking

the tires, listening to employees talk about the latest innovations or development,

dialing for discourse with investors, reading the trades, observing the

consumer marketplace, spotting trends, fielding calls from institutional

salespeople and traders, inputting numbers into valuation models, deciding

on buy, hold, or sell recommendations, and writing them into a readable,

compelling report that says something useful and incremental. Pressure and

stress are just a few of the occupational hazards, because millions of dollars

are on the line with every stock pick. Therefore, if an analyst seems impatient

or abrupt, it’s par for the course.

The relationship in a sell-side firm between the analyst and the institutional

sales force is tenuous because the salesperson’s reputation and ultimate

success depends on the information he or she receives from the analyst.

This situation creates a climate with the potential for the analyst to be hero

one day and a dog the next. A bad pick can alienate the analyst internally

(not to mention externally with the buy-side), dramatically affect his or her

compensation, and possibly jeopardize his or her career. That said, the analyst needs to be right and is counting on management and investor relations

to be straight-forward and consistent.

Therefore, a thorough understanding of the analyst’s day-to-day duties

is needed after targeting, but before the approach. Management must understand

the leap of faith an analyst is taking when picking up a stock and

how anything but honest communication can destroy the fragile process.

The same goes for the buy-side. IR and management may only have one

chance to attract the attention of a portfolio manager, and when they do,

they better act as they understand that person’s job and understand what he

or she has to deliver to shareholders. That increases the odds of ownership,

positions the company to diversify its analyst base, and makes the most of

IR expenditures.

With the company’s message defined and the complicated issues surrounding

guidance decided upon, its time to target analysts and investors.

UNDERSTANDING THE STREET

When IR targets the buy-side and the sell-side, it should zero-in on the analysts

who cover the company’s industry or peers, and the portfolio managers

that buy similar stocks. The initial investigation should start wide, then narrow

in on a specific group.

In the spirit of casting the widest initial net, IR should pull together the

names of all sell- and buy-side analysts in the comp group/sector and compile

them into an email distribution list. Though the list will change from

quarter to quarter, it’s a good basis for ongoing communications. Even if the

company has a small market cap and three of the analysts in the sector only

follow mega-cap stocks, the mega-analysts should be put on the list. They

won’t cover the company or survive the next round of targeting, but IR

wants those analysts to be aware of the company. It may lead to a dialog

someday, as the company grows. IR should put anyone who’s relevant on

that distribution list because the incremental cost in time and money is virtually

zero.

TARGETING THE BUY-SIDE

To discover its own shareholders, IR can comb through any number of databases

and create an Institutional Holders Report, which essentially measures

the buy-side and shows the value and percentage change in stock held by the

largest institutional investors. A large chunk of smaller-cap stocks are usually

held by just a few dozen institutional investors, and their stakes, as a

number of shares and as a percentage of the company’s total outstanding

shares, are publicly available.

After discovering the company’s top shareholders, IR should run a peer

analysis and identify the top shareholders of its comp base. This cross-reference

of ownership puts the pieces of the puzzle into perspective. If an institution

does not own the company’s stock, but is buying many other companies

in the sector, there is an opportunity to target this institution as a

potential buyer.

In addition to just knowing whether or not the buy-side institution owns

the company’s stock, IR must determine the following about the institution:

Amount of capital being managed

Investment style, for example, growth or value investor

Portfolio activity, specifically as it relates to the company’s industry (are

they buyers or sellers during any given quarter?)

With that information in hand, IR can zero in on the right buy-side institutions

and connect management with the right PMs. Without that information,

IR is guessing, the entire effort is compromised, and the time and

money spent visiting the wrong institutions can be a complete waste.

As a basic example, let’s take a restaurant chain we’ll call The Bubble

Factory. Table 17.1 lists the large institutional investors and their ownership

in The Bubble Factory and the Bubble Factory’s Peer Group: California

Pizza Kitchen Inc. (CPKI), Red Robin Gourmet Burger (RRGB), and PF

Chang’s China Bistro, Inc. (PFCB).

It’s obvious because of the representative ownership in the other companies

in this peer group that a few large institutions could own more of The

Bubble Factory.

When it comes to approaching the specific funds, IR should deliver, in

advance, a one-page profile of the institution which is available from certain

databases. As an example, if The Bubble Factory were to meet with Baron

Asset Management, they should know some basic information, as shown in

Figure 17.1.

TARGETING THE ANALYSTS

In terms of measuring the sell-side, the IR team can tabulate trading volume

in the stock by investment bank to see which firms are trading the most

TABLE 17.1 Institutional Ownership in Peer Group

Equity

Institution Name Assets CPKI RRGB Bubble PFCB Total

Fidelity Management

& Research Co. 552.41 $22,770,800 $27,596,712 $5,009,611 $181,624,203 $237,001,326

Capital Guardian

Trust Co. 139 $54,913,000 $33,138,822 $ 88,051,822

American Century

Investments 67.132 $86,503,199 $86,503,199

Forstmann-Leff

Associates 2.955 $47,725,681 $27,313,477 $75,039,158

Westfield Capital

Management 3.5721 $74,101,940 $74,101,940

T. Rowe Price

Associates, Inc. 135.5 $11,942,304 $58,938,072 $70,880,376

Barclays Global

Investors, N.A. 760 $9,576,320 $8,132,147 $45,156,289 $62,864,756

AIM Management

Group, Inc. 60.365 $60,075,756 $60,075,756

Strong Capital

Management, Inc. 20.54 $22,435,640 $9,724,265 $51,498 $20,982,971 $53,194,374

Source: Bigdough.com

BARON CAPITAL GROUP INC.

Reported Equity Assets (U.S. $B): 6.951

Inst. Qtr. Commissions: $2,511,706 @ 0.05/Share

Reported Commissions: $9,608,000

Institution Type: Investment Advisor

Market Cap: Small-Cap, Mid-Cap

Styles: Value and Theme

Average P/E: Low

Average Yield: Low

Portfolio Turnover: Very Low

Asset Allocation: 100% Stocks

Overview

Baron Capital manages the Baron family of mutual funds, as well as separate

equity portfolios. The firm is primarily a small/mid-cap theme-oriented investor

that looks for stocks with growth characteristics with a value orientation. Baron

defines small-cap as those with market caps between $100 million and $1.5

billion and mid-cap stocks as those with market caps between $1.5 billion and $5

billion.

Strategy

The firm begins its investment approach with a top-down screen to identify what it

calls “sunrise” industry sectors which are sectors expected to benefit from social

trends and demographic changes. Baron then follows this with bottom-up

research seeking U.S. stocks with: (a) high incremental returns on investment; (b)

undervalued or unrecognized assets with appreciation potential of 50% or greater

in the next two or three years; and (c) significant positive cash flows. The firm

prefers meeting with management prior to stock purchase and often maintains

that relationship after the purchase is completed. Baron Capital conducts all

research in-house. The asset allocation for the firm is 100% equity.

Supplemental Information

Baron Capital Group, Inc. is the holding company for BAMCO, Incorporated and

Baron Capital Management, Incorporated. BAMCO is the investment advisor to

the Baron Funds. Baron Capital manages portfolios for individuals and

institutions. The firm’s 13F which is filed under the name BAMCO, Incorporated

reflects equity holdings for the mutual funds.

FIGURE 17.1 Baron’s Profile

Targeting the Audience 141

FIGURE 17.1 (continued)

Security Industry

Name Name Value Shares % Held % Port Qtr End

CAKE Restaurants

Cheesecake Factory Inc Com $159.3M 3,456,700 6.6742% 2.292% 12/31/03

KKD Restaurants

Krispy Kreme Doughnuts Inc $120.1M 3,497,800 5.7328% 1.728% 12/31/03

COM

PNRA Restaurants

Panera Bread Co Cl A $42.1M 1,083,550 3.8137% 0.606% 12/31/03

PFCB Restaurants

PF Changs China Bistro Inc Com $20.2M 401,000 1.2335% 0.290% 12/31/03

CKR Restaurants

Cke Restaurants Inc Com $17.3M 1,750,000 3.0375% 0.249% 12/31/03

CPKI Restaurants

California Pizza Kitchen Inc Com $13.0M 650,000 3.4074% 0.187% 12/31/03

Source: Used with permission from Bigdough.com

stock of the company. A measure of each analyst’s knowledge is often the

ability to sell an idea to the buy-side, and the firm’s willingness to back that

investment idea with capital on the trading desk.

IR should know the following about an analyst:

Coverage universe

All ratings within that universe

History of recommendations

Average market cap the analyst covers

Preferences

In this selection process, the most important thing for IR to know is

who matches up best with whom. Analyst support is not necessarily a numbers

game. It is a strategic effort that segments and filters until a narrow

group of high-impact prospects emerges. IR should assemble all analysts

who cover the sector, evaluate their coverage universes, and make a decision

who to target.

No other medium penetrates the buy-side and the media with as much

credibility and substance as the sell-side’s equity analyst. Despite all the negative

publicity, institutional investors read a substantial amount of sell-side

research. They may not always value the exact investment rating, but they

do pay attention to financial modeling and content.

The result of coverage is awareness, access, and credibility—all of which

generates interest that, one hopes, creates demand for the stock. And the research

report can go beyond the buy-side and the media.

Other sell-side firms often read other firm’s research, which sometimes

can lead them to call the company and possibly initiate research of their

own. The industry, including competitors, suppliers, vendors, and customers,

may also read this research, and it gives the company tremendous

third-party validation and endorsement. Finally, research reaches employees

and validates their mission which helps the overall company—more so when

it’s positive, but a negative research report can also be a huge motivator.

We’ve seen negative reports circulated to employees and tacked up on their

walls as a reminder to work even harder. In either case, research coverage

can lead to a very prosperous cycle (see Figure 17.2):

This cycle interrelates with guidance and can break down if guidance is

ignored. If guidance exists, however, and it’s conservative, the company is

positioned to perform up to expectations or to outperform those expectations.

Guidance also attracts the sell-side and increases the odds of positive

research reports as earnings targets are met. Therefore, both guidance and

targeting work together in this stage of pre-delivery to increase the odds that everyone involved in the process, from management to the analyst, is positioned

for success.

THE RESEARCH HURDLE

Even before the consolidation of the investment banks, getting coverage was

never easy. While there are hundreds of analysts, there are thousands of publicly

traded companies. Additionally, most institutional investors will only

invest in companies with large market capitalizations, that is, valuations that

are over $1 billion. Thus, if the larger sell-side firms want to generate trading

commissions, then their research should probably cover the companies

with large market capitalizations. That approach potentially leaves thousands

of publicly traded companies with no coverage.

That explains why many smaller companies don’t pursue analysts at

larger investment banks. However, many investors buy stock in companies

with market capitalizations under $1 billion. In fact, these investors specifically

seek out the mid-, small-, and micro-cap companies. As a result, many

sell-side firms work with these investors and these companies, and there are

research analysts who provide coverage. Finding these analysts is important

to a good IR effort because the benefits are too worthwhile to ignore.

Some IR professionals do not have a full appreciation for how tough an

analyst’s job is. IR often lacks a first-hand understanding of what analysts

do on a daily basis, how they are paid, and what they are looking for from

IR and from management. In preparing for delivery, IR needs to understand

these factors, because they can make the act of approaching the analyst simpler

and more effective.

Research report gets

issued or institutions read

exsisting research.

Management goes on road

show with analyst. Sales

people usually set up meeting.

Sales force calls institutions after

the meeting or the issuance of a

report to seek an order for the

purchase of shares.

FIGURE 17.2 The Virtuous Cycle of Research

THE ANALYST’S MOTIVATION AND INCENTIVE

An analyst gets paid to make good stock picks and to generate trading commissions

for the firm. There are several reasons that portfolio managers run

their commissions through certain banks, including the analyst and institutional

salesperson’s relationship with the portfolio manager; the analyst’s

knowledge on any given stock; and, certainly, good trade execution. Analysts

must also create access to management teams, providing the buy-side

with an opportunity to “hear the story from the horse’s mouth.” Therefore,

good research based on a superior industry understanding coupled with the

ability to deliver management teams to the buy-side is key. IR and management

must understand this when they target and approach any analyst.

THE MIND, AND DAY, OF AN ANALYST

Sell-side analysts overwhelmingly are absorbed in one industry or sector.

They know the industry’s history, the current situation, the dynamics and the

players, and they know it all in-depth because they live and breathe their

coverage universe every hour of every day. To be the expert, and more importantly,

to get paid, analysts not only must know their sectors well, they

also have to know them better than anyone else.

A day in the life of the analyst is spent delving into the intricacies of a

company and an industry, which means due diligence, analysis and spreadsheets,

conferences, traveling, talking to CEOs, touring factories and kicking

the tires, listening to employees talk about the latest innovations or development,

dialing for discourse with investors, reading the trades, observing the

consumer marketplace, spotting trends, fielding calls from institutional

salespeople and traders, inputting numbers into valuation models, deciding

on buy, hold, or sell recommendations, and writing them into a readable,

compelling report that says something useful and incremental. Pressure and

stress are just a few of the occupational hazards, because millions of dollars

are on the line with every stock pick. Therefore, if an analyst seems impatient

or abrupt, it’s par for the course.

The relationship in a sell-side firm between the analyst and the institutional

sales force is tenuous because the salesperson’s reputation and ultimate

success depends on the information he or she receives from the analyst.

This situation creates a climate with the potential for the analyst to be hero

one day and a dog the next. A bad pick can alienate the analyst internally

(not to mention externally with the buy-side), dramatically affect his or her

compensation, and possibly jeopardize his or her career. That said, the analyst needs to be right and is counting on management and investor relations

to be straight-forward and consistent.

Therefore, a thorough understanding of the analyst’s day-to-day duties

is needed after targeting, but before the approach. Management must understand

the leap of faith an analyst is taking when picking up a stock and

how anything but honest communication can destroy the fragile process.

The same goes for the buy-side. IR and management may only have one

chance to attract the attention of a portfolio manager, and when they do,

they better act as they understand that person’s job and understand what he

or she has to deliver to shareholders. That increases the odds of ownership,

positions the company to diversify its analyst base, and makes the most of

IR expenditures.