Guide to Investor Relations
  What is Investor Relations? Position of Investor Relations in the company Myths of Investor Relations  
 
 
 
  Myths of Investor Relations

Myth

Reality

Let results speak for themselves

Competition for recognition in the capital markets is intense, to the extent that

good performance alone will not overcome lack of communication about

achievements and strategy

The media never pays any attention to us

Building a media image takes time, well beyond the impact of a one-off

announcement

The analysts just don’t understand us

Communication is a two way process – an analyst showing an apparent lack of

understanding quite often results from poor corporate communication in the first

place or doubts which have not been countered

The media never gets it right

Journalists strive for accuracy and are often thwarted by poor presentation of

corporate information and a lack of understanding about what they need to

write responsibly

No-one ever reads our annual report

Readership might be low but the annual report is a company’s definitive

corporate and investment marketing document and its importance cannot be

taken lightly

Our news needs beefing up so the world knows it's special

Over use of superlatives, adjectives and adverbs achieve the very opposite of enhancing credibility

We’ve got some bad news we just need to bury under our recent achievements

Playing down bad news is a natural trait but longer term respect and credibility are best served by being up front about things not working out

Our share price needs a few announcements to get it going

There is little doubt that new information has value in the market place but the genuineness of information is transparent for all to see

All shareholders ever want is a dividend cheque

Don’t underestimate the value of shareholder loyalty and winning it with communications and consideration

Source: Westbrook Communications - Investor Relations; www.westbrookfin.com.au;

 
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