Long serving and loyal secretary Sheila, according to investment guru Lord John Lee, is now a multimillionaire. How did she do it? By following a policy of investing in small caps and rarely touching them.
We all remember Forest Gump being sold 'some sort of fruit' shares (Apple) but do we remember a small company called 'Microsoft' being launched in April 1975 and another called Google in 1998? These too would have been classified as 'small caps'.
But how do new companies showcase themselves to investors and potential investors. How do they stimulate that interest and the belief that this is the next big thing?
Financial PR has traditionally focused on analysts and fund managers with tedious and long winded presentations. But the magic of the company and its essence often fails to come across. The same compelling stories need to be told through financial PR as they are in the consumer world. Investors need to be persuaded that this company has something outstanding that will make it succeed.
CEO's of small caps should tell the story of what inspired them and why their company will be the one worth investing in. But also get their marketeers, buyers and product developers involved as well so that the whole journey is laid out. If they get that right the publicity will follow.
A frustration common to chief executives of small-cap companies such as these is their inability to obtain publicity for their companies, and through doing so, become better known to investors. One of the more successful attempts to raise a profile was that of international book publisher Quarto, a long-time favourite of mine. It organised a full afternoon’s event presentation for 40 fund managers, analysts and investors — not just with the usual contributions from the chief executive and finance director, but by bringing along their key executives to talk us through the creation of their publications, their design, selling channels, and acquisition policy with much more depth than usual.