Investor Relations on the Internet Citations

Investor Relations on the Internet Citations

How are analysts using the Net?

NB: Use this guide while signed on to the Internet for live examples of the points made in the presentations by Mike Reilly, Chair of the conference and President of Hally Enterprises, Inc. at " Investor Relations on the Internet" - The Stanhope, New York City November 3-4, 1999

Section I - Introduction

Hally Enterprises Introduction - Homesite http://hallyenterprises.com/index.htm.

The Internet features everywhere we look. With all this attention, there is huge competition in communicating -- you will hear me say throughout this talk, take expert advice.

Here are a few examples of the ubiquity of Internet attention:

It was Business Week's cover story just a few weeks ago. http://www.businessweek.com/1999/99_40/b3649001.htm

Peter Drucker, the enormously insightful commentator on managerial and societal structures, was the author of the Atlantic Monthly's cover feature for October, "Travels into America's Future, Beyond the Information Revolution," an exploration of where all this Internet connected world may lead. http://www.theatlantic.com/cgi-bin/o/issues/99oct/9910drucker.htm

Lou Thompson, head of the National Investor Relations Institute, opened a NYC NIRI chapter meeting this past Spring with the words: "Internet, Internet, Internet."

Mega trends

-The Haves and Have-nots: about 25 percent of America is actively using the Internet; but perhaps 50 per cent are users in professionals' households.

- Network Computing: The outsourcing of website, database and software management exemplified by EDS, IBM http://www.ibm.com/news/1999/09/27.phtml

- Personalization: As provided by Amazon http://www.amazon.com/exec/obidos/subst/home/home.html/002-6140303-3569058

and other online shopping spaces, e-brokers like Schwab and E*trade, and banks.

How those trends are unfolding in Investor communications

- Haves and Have-nots: Some corporate sites have good material most do not. Failing to provide as much as your target audience wants leaves them in the "Have-not" category for now. As a result, analysts and portfolio managers use professional databases first. Reuters, Bloomberg, Dow Jones and others like www.onesource.com - a high-priced aggregator. But that is changing. Check out http://www.codexa.com which seeks to harness the chaotic spread of investment information on the Internet, including your company websites.

- Network Computing in IR: CCBN, Stockmaster and vIRtual IQ

- Personalization in IR: IR Express

and www.shareholder.com.

Section II - How are buy and sell side analysts using the Internet

AIMR study 1Q99 - the first detailed study of analyst views on Internet content value.

http://www.aimr.org/infocentral/news/99releases/int-study.html
[Editor's Note: since publication of this article, the above URL has become exctinct]

We mentioned alternatives like Reuters, Bloomberg, OneSource and Codexa

Unfortunately the evidence continues to pour in that corporate sites just aren't there yet.

Shelley Taylor used over 200 datapoints to analyze sites last year for the most important information analysts are looking for. She found them lacking. http://www.infofarm.com/html/5_january__1999.html

PR Newswire the summer surveyed the top 100 NASDAQ companies -- again, while the use of the Web is clearly high -- over 90 per cent -- content was poor. http://hallyenterprises.com/news/news_.htm [Editor's Note: exctinct URL]

Section III - What works? What will last?

The Internet forces all comparisons to the best. That means you must take expert advice. The consistent leader in Corporate Communications online best practices is Intel, which in 1999 has combined online information strategies with offline strategy -- slimmed down Annual Report directs users to the Web site. www.intel.com

Another leader in innovation, building a dramatically expanded Annual Report on the web, is Sun Microsystems. Here is a view of one section of the chairman's letter: http://www.sun.com/aboutsun/investor/ar/1999/letter.html. Notice all the links to more information. [Are analysts using it?? - Mark Paisley said they are raving about it]

While it may seem a small thing, Intel pioneered using its stock symbol to take researchers directly to the Investor Relations subsite within its Homesite:

www.intc.com Every thoughtful action conveys relationship value...

We chose Intel as a best practices example -- no denigration of the scores of other companies that are now doing an excellent job with their investor communications on the Internet.

But "scores" still add up to a small portion of the 10,000 listed companies in the US alone.

Most corporate sites are a mess. www.websitesthatsuck.com

Examples:

web.icq.com

Here is a major NYSE company which offers this page when you seek investor data: http://www.inco.com/invest/toc-invg.htm

Unfortunately, the citations in this category are endless -- you can search for yourself.

However, even a small company can produce a state-of-the-art Homesite

www.coopercos.com - aimed at investors. Cooper has teamed with one of the modular information providers to give a robust offering to investors.

Section IV. So what are some basics about communicating with analysts through a company website?

Make your site useful. Take expert advice. Since text is the prime device on the site, remember that writing is not repurposed print copy -- it calls for a different writing style as well as a structured presentation -- designed expressly for electronic dissemination and scanning.

Then, use the new technologies. Our presenters today will add lots of detail.

Above all, recognize that this is a marketing exercise. Once you have a valuable IR website, get moving. Start with some advice from peers in marketing at your company. Then use advisors who understand marketing and Use traditional business-to-business marketing -- advertising, direct mail, promotional literature (collateral). Even without a costly campaign, you can tell the world -- send out notices; issue fax announcements, call your key list of contacts, send out a press release:

"Come to our website to find ---"

"XYZ Co announces new investor facilities"

http://www.searchenginewatch.com/.

Again, my main message: take expert advice. Jakob Nielsen is the man behind the exemplary Sun Microsystems site. He publishes enormous amounts of material on what makes a good site, all of which translates to "What makes a good IR (sub)site?". See the answers at http://www.useit.com/ and there are more specific IR ideas on my own Hally Enterprises site www.hallyenterprises.com where articles listing basics and some trends are available, including this presentation and its hotlinked citations.