Investor Relationships in the social era…

The dark side of the investor world…is easily found on the boards which purport to be mediums where investors share information for the purpose of “greater good”.

I knew absolutely nothing about these boards, despite being a CEO of an OTC (over-the-counter market) company for over 3 years. Never had anyone referred me to this interesting world where people are hoping to make quick bucks with huge multiples.

Since February of 2011, I have been involved in that world, on behalf of SLMU.PK (salamon group). Wow! Talk about a “baptism by fire”. Relentless, ruthless and unabashed agenda building in a small community of investors, all looking for the great quick fix. Little did I know what I would in for, and happily I can say that its been an amazing experience.

There are all sorts of people involved in these boards. Paid pumpers (people who praise a stock with little justification). Paid dumpers (people who will likely “short” a stock, in the hopes that when it slides into oblivion, the sale orders they hold will be worth multiples). There are everyday “regular” investors looking for a quick buck. There are “police” who monitor what they feel are duplicitous scams in the hopes of revealing deep, dark secrets about the company or its team, acting as “white knights”.

Over the past three months, I have been involved in press release processes, from early February up until the end of April, and board posting in response to others on behalf of the company Salamon Group Inc. That period was a most interesting one because I was publicly exposed as the “front guy” who would handle investor relations. What I learned is that much like public relations, investor communication has moved from “relations” to “relationships”.

This takes a page out of my previous blog posts that talks about moving customers to audiences, and it all has to do with engagement levels. The more engaged, the more involved and hopefully, loyal. Such crowds demand personal attention through a network of “private messages” and often share whatever you write with others, sometimes even publicly. I’ve had my home office address posted online, and been “called” numerous things.

What I have come to appreciate about the experience, is just how relevant the very same principles of success on a corporate facebook or twitter page, today apply to the world of investor relations. People are looking for conversations. One way announcements are things of the past. They want engagement, they seek understanding. They want a conversation.

Perhaps it is a symptom of so much “hiding behind a screen”, that people feel the need to send all kinds of electronic messages, often about non-relevant topics, simply to gain a reaction. Investor relationships can be fruitful if properly managed. As with customers, investors can become part of the community which engages and brings others into the world of that company which is represented by entities that understand the value of engagement in the new social world.

The world of finance has awoken to these realities a while ago, by having “financial blog” sections in most of the online finance services. It is up to companies to use such resources effectively to maximize the trust of the individuals who seek answers from it. A few well placed blog or investor board posts can replaced dozens of emails which otherwise would have been necessary…

I still receive a few emails, particularly because people think I am still involved in the PR process at SLMU. Since end of April I have been focused on other things and wish those people handling it all the best. It is a balance between revealing too little or too much that they always play. Not an easy task under the best of circumstances…particularly when the vultures who are paid are ready to pounce.

Sass