Continued from page 1
As with many things in
Financial Industry, Investor Relations costs are often set by
ignorance of
buyer. Be certain that you aren’t being charged far more than
marketing service costs other public companies. Define your target market for shareholders as long term investors. If you attract
small capital speculators that populate
OTCBB Market, they will sell into any share price appreciation. Why have them sell your shares at a high price to long term investors? Let
shareholder who will support your company profit most from your Target Company vision.
Small Capital Investors buy shares motivated by greed. However, that greed must have a credibility component with it. The best credibility component is
investor’s ability to buy
Target Company’s product or service in their local area. A company selling something they can buy is credible.
I believe that American Small Capital Investors make unlikely long term investors. I think
Investor Relations techniques used in
United States are not as effective with American investors as they would be else-where. The reason is that
American public is over exposed to effective marketing techniques. In most of
World,
local population distrusts
local currency. They tend to unwisely trust
American Dollar. This viewpoint is a major reason that
GRCM works outside
United States. Owners of cash-producing assets want payment in American Dollars, not
local, restricted currency. The principle applies to potential long term shareholders in these countries. It would simply be a variant of
Five Step Path tactic. For these reasons, I’d advise Target Companies to target their Investor Relations efforts within their own region. They are credible to investors because their product or service can be found locally. They are more likely to respond to an Investor Relations appeal. They may want to hold their assets in American Dollar denomi-nated securities. It costs less to run an Investor Relations program outside
United States. The Internet gives all investors and shareholders adequate access to relevant stock information.
It costs money to be able to print your own money. The costs are worth it, if you use your shares to build your company. The potential leverage will compress
development of your into an acquisition target to a few years. It will leverage your company’s value because your Target Company will be valued in American Dollars at Market Capitalization (Share Prices times issued shares).
To contact
author: Visit
Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit
Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]