DEMOCRATIZING INVESTOR RELATIONS: IROS DON’T JUST SERVE INSTITUTIONAL INVESTORS

2021 will forever be remembered for the rise of the retail investor. If you spend any time on Reddit and Twitter, you’ll find that retail investors are in part motivated by being the underdog. However, did you know retail investors have the same access to the investor relations department that institutional investors do? That’s right, retail investors can also engage investor relations to gather intel as part of their analysis of a company.

Investor relations departments must continually strive to serve the interests of the organizations they represent as well as existing and potential investors. Whether they are members of large teams or an army of one, Investor Relations Officers (IROs) typically serve as the primary point of contact for investors who wish to engage with the company as part of their due diligence and investment approach.  

Whether you are a retail or institutional investor, IROs fully welcome your questions (it’s their job)! We at irlabs, understand that trust and candor is important between management and investors. Believe it or not, IROs want to talk to you, hear from you, and engage in thoughtful discussions about the future of the companies they serve.  

Three important considerations when contacting investor relations 

Don’t be afraid to contact investor relations. IROs can be contacted through phone, e-mail, or even carrier pigeon. Here are three helpful hints to increase your chances of a reply: 

• Do your research: Show the IRO you know about the company and make sure you’re not asking for information that is readily available. 

• Be prepared with specific questions: Be ready with specific questions about the company but bear in mind that the company will not divulge information that is non-public. Examples of acceptable questions: 

  • How would you describe the culture of the organization? 

  • What does the organization’s ESG program look like? 

  • Who are your biggest competitors?

  • What are the greatest risks facing the company? 

  • Where do you see the company in three years? 

  • Can you provide clarification around corporate strategy? 

• Don’t ask for advice: IROs are not investment advisors and cannot provide advice on the stock. So, please refrain yourself from asking about where the stock is going. 

The IRO’s job is to be the conduit of frequent, genuine and transparent communication from the C-suite.  But, the C-suite has a tremendous number of responsibilities. Therefore, it’s important that investor relations engages them only when needed so they can use their time most effectively. However, regardless of whether you are a retail or institutional investor, IROs understand the importance of responding to relevant, specific questions about a company’s direction. 

So call us, maybe.