Multi-ethnic group of people discussing business

Correcting investor misperceptions

An industrial company that could not shake its “poor performance” label, despite years of improving financials, sought SMA’s counsel to counter the Street’s misperceptions. We implemented a plan to reintroduce the company to investors, using refreshed messaging targeted at an entirely new group of investors.

Client Challenge

Erase negative impressions lingering from the past

Despite a new management team, a shift in strategic focus, five years of slow but steady growth, and a solid financial turnaround, few on Wall Street were familiar with this industrial manufacturer. To make matters worse, the majority of those who did know the company held misconceptions based on past poor performance. Only one sell-side analyst followed the company, and institutional ownership lagged far behind that of its peers.

The Sharon Merrill Advantage

Selective analyst introductions and clear IR messaging

SMA used its proprietary targeting resources to contact buy- and sell-side analysts based on the client’s industry focus and investment characteristics. To support this outreach, we launched a new communications strategy to dispel common misconceptions about the client and raise awareness of its recent accomplishments. Investors who responded to the outreach were introduced to management in key U.S. money centers through one-on-one and group meetings.


Sell-side “buy” recommendations and double-digit growth in institutional ownership

During the first year of the new IR program, more than 50 analysts and portfolio managers met with company executives in person. According to the majority of investors who responded to feedback surveys, the updated communications helped them better understand the company’s story. More sell-side analysts issued coverage with “buy” recommendations, and institutional ownership increased 19% year on year. The company was eventually acquired for nearly double its market valuation.

Young quality inspector checking production line
Closeup hands of group of people in a meeting