Situation:

This niche micro-cap technology company was being overlooked by Wall Street, with no analyst coverage or institutional ownership, due to the reputational damage caused by a prior management team.

Strategy & Tactics:

  • In order to enhance the Company’s credibility, MBS devised a series of benchmarks by which to measure performance, and undertook a benchmarking of all IR materials.
  • MBS identified sell-side analysts covering industries outside the Company’s niche in the broader micro-cap and technology space, and marketed the Company to these analysts.
  • We organized an investor day and secured invitations to several investor conferences to bring the Company’s story to the attention of the buy side.

Results:

  • The Company generated significant institutional ownership, diversifying its investor base from being exclusively retail investors.
  • Analysts at Piper Jaffray and Sidoti & Co. picked up coverage of the stock.
  • The Company’s stock rose from $0.50/ share to the $3-$4 range, helping them transition to an NYSE listing
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  • http://mbsvalue.com/case-studies/micro-cap-technology-raising-visibility/