What do you do as a small cap company when you want to communicate your investment case? In a post MIFID world this is not an easy proposition. The reality of 2019 is that there are just a handful of small cap journalists, limited company coverage by brokers and yet the need for investment remains the same. The answer to the conundrum could lie with speaking to your potential investors directly. And so this is exactly what we at Yellowstone have just organised to test this approach.
Four small cap companies namely, Volex, Mirriad, Allergy Therapeutics and Checkit all met with private investors at the Yellowstone Advisory and FiveMinutePitch TV Private Investor evening on November 4th. The event was oversubscribed with a waiting list showing keen demand from this segment of the investor community. The company management presented their investment case and then fielded questions from the floor. After the event management met with attendees for a personal chat.
This entire scenario could be asked in reverse – as a private investor looking for attention-grabbing, solid companies in which to invest how do you enquire, learn and decide? The answer is normally that you would struggle to find accessible research, would need to rely on limited press coverage of the small cap universe and therefore do a lot of work oneself to delve deep enough to make investment decisions.
So the concept of directly linking the two parties delivers a win-win scenario. So much so that we are now looking to organise further events in 2020 with the first one likely to be in March 2020. We already have a number of companies interested in presenting and we will look for interesting companies with a compelling investment proposition.
Thus far, feedback from all parties has been overwhelmingly positive. Company management felt that direct engagement with private investors was hugely beneficial, and the attendees appreciated the opportunity to meet CFOs, Chairmen and CEOs in person.
If you are a company or a private investor interested in participating in one of our events then please contact us https://www.yellowstoneadvisory.com/contact-us.