Well this is interesting.  Consider that a bright light is always likely to reveal something you wouldn’t otherwise see.  For example, a flashlight when you’re looking under the couch for the remote and oh look, there’s the missing Scrabble tile.  And consider now we have the SEC undertaking the registration and inspection of hedge funds.  What is the likelihood the SEC won’t find anything?  This is not to say that hedge funds are investors gone wild, rather than a bright light is always likely to reveal something you would not otherwise see.

Steve Jobs was famously disdainful of Wall Street.  When an analyst at the Apple 2011 Annual Meeting asked, “What keeps you awake at night?”  He replied, “Shareholder Meetings.”  On the other end of the spectrum was Al Dunlap.  Dunlap made decisions to appease institutional investors of Wall Street, long-term health of the company notwithstanding.  The book Chainsaw recounts the story of Dunlap dictating the closure of a 125-person factory, at a cost of $10 million,“to save less than $200,000 a year in transportation costs” because “Dunlap understood that Wall Street handsomely rewarded companies that shuttered plants and laid off workers.”

In partnership with Arrowhead Business Investment and Decisions, the Corporate Forum is delighted to have MIKOH Corporation present to a retail investor audience in Washington, DC on Friday, February 24.

There are many differences between retail and institutional investors – different motivations, resources, pressures and parameters.  However, there is one similarity that is very, very important for companies engaging in outreach.  The clock.  Whether it is a group luncheon with retail investors or a one-on-one with a Fidelity portfolio manager, do not go over your allotted time.

About 18 months ago I wrote an article questioning the use of Twitter for investor communications, “If a Bird Tweets in the Forest, Do the Trees Really Care?” The article made a distinction between social media and business communications, and cautioned readers not to confuse one with the other.  But here it is 2012, and it’s time to revisit resolutions, drag out the exercise bicycle and reconsider the use of Twitter.

Isn’t it interesting that so many of the recent Noble prize winners for economics are those involved in the field of behavioral economics? This, of course, is the field that says that humans aren’t so rational after all. That we don’t always make decisions based strictly on reason.  In the investing realm, there are often other factors at plan including loss aversion, mental accounting and cost basis anchoring.  

Have you seen the new McDonald’s commercial?  It rocks.  People use “Egg McMuffin” to express the best of the best.  The girlfriend tells her guy he’s an Egg McMuffin.  The real estate agent promises the apartment hunter he’ll love the unit because it’s a real Egg McMuffin.  And I’d like to bestow Egg McMuffin status on retail investors.

I saw an interesting presentation by Frank Abagnale last week.  He’s the real life con man portrayed as a likeable scamp in the movie “Catch Me if You Can.”  He is still a likeable guy, now closer to 60 years old than the 17 at which he started scamming.  And he is still spot on when it comes to telling a compelling story.  I am smiling as I recall his story of dressing up as a security guard, taping an ‘out of order’ sign to the after hours bank drop, and collecting bags of money from late-night workers.

We all know investor presentations follow a set format - first an overview of the of the business, then the execution strategy and finally the financials.   But that does not mean you should bury the lead.  As a publicly traded company, when you are giving your investor relations presentation on the road , go ahead and lead with the reason you are out.  New management  team  or strategic focus?  Favorable refinance or turnaround story?   Whatever the reason, do not wait till the middle or end of your presentation.

There is an article in yesterday’s WSJ on Jon Corzine who is apparently looking for office space in Manhattan, and apparently John Carris Investments is a potential site.  The write-up is marvelously bland.  Simply a review of a high-profile person seeking a business office in New York, not necessarily a job, and the various connections Corzine has with the different principals. Some of whom worked for him in the past or sat on business-related boards.