Below are case studies involving various Howard Group clients that quantify the results of specific initiatives that were undertaken on behalf of companies. The case studies illustrate the impact of messaging in combination with online and social media retail investor programs as well as traditional corporate communication programs that are oriented to building relationships on a more personal level.
Also, the case studies clearly show the extent to which The Howard Group becomes involved with the companies it represents and are presented on an individual basis as well as compiled in a booklet.
In all cases, the chosen time periods reflect what can happen to liquidity and valuation when there is an educated following for a company.
The Howard Group’s role is to develop and deliver a growing audience. The client’s role is to provide the results that motivate the audience.
Case Study 10: Green Brings Green
August 2012 - January 2013
The Challenge
HG was asked to maximize the impact of a favourable article on the client’s technology and potential new business development.
August/September 2012
An Unexploited Opportunity Recognized
In late October 2012, The Howard Group became aware of the industry article and the possibility that the client was working to close a contractual relationship with the transformer manufacturer.
The Approach
November 1, 2012
- HG writes and widely distributes a detailed blog on the attributes not only of the technology as verified by a third party BUT also the nature of the long-standing relationship between the client and the transformer manufacturer. A wide but focused effort was directed at stakeholders, interested parties and industry.
- The blog was written and targeted in such fashion as to bring background and thus greater understanding of the client-manufacturer relationship should a contractual relationship be completed.
November 8, 2012
- HG enters blackout with the pending signing of a contract.
- HG advises a strategy around a trading halt, assists in the scripting for a post release conference call and news release, arranges all details for call and prepares a blog to be widely distributed in conjunction with the formal news release.
November 14, 2012
The Howard Group writes and distributes an extensive blog summary on the after- hours trading conference call. This ensured those who could not participate in the call were provided management’s comments and future objectives.
The Result
The stock had languished in the $0.05 range for a number of months on small trading volumes due to a lack of business news. Immediately following the release of the first November 1st HG blog, volumes began to increase as did the stock price. Immediately following the news release, management conference call and broadly distributed HG call summary, trading volumes dramatically increased with the stock hitting a high of $0.17 before settling into the $0.12 range.
Importantly, even at the end of the year the stock maintained support in the $0.10 range, double the summer base price.
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Case Study 9: Setting The Foundation For An Emerging Story
April 2013 - January 2013
Scenario
The 2008 economic abyss resulted in the sudden loss of millions of dollars in contracts for a small sized company, related to its work in the energy sector. The company spent the next four years diversifying and de-risking its business by focusing on obtaining infrastructure projects, ultimately accounting for 80% of sales. However, the public market was totally unaware of the business turn-around, escalating sales and the important reasons that dramatically increased both the short and long-term potential of the company.
Kicking Into Action
The Howard Group was formally engaged to construct and manage the capital market communications program in February of 2012. HG was well-versed with the company and had several years of history through its personal participation and investment in a convertible debt instrument. The issues were evident with poor liquidity and a low valuation of less than one-third trailing revenues. Those who remained in the stock suffered from investor fatigue and few people recognized the company name.
A larger audience was obviously required, but the first step was to revitalize the heart of the story by focusing on key achievements and realistic future goals based upon lessons learned from the past. HG repositioned the company’s message to not only tell investors what the company does, but the reasons behind why the story makes sense and offers a reasonable expectation of future value.
In addition to providing strategic capital market communications planning, HG undertook a number of activities including:
- Development of key business messages associated with achievements and upcoming events.
- Development and design of investor related materials including investor presentation and corporate fact sheet.
- Website review and recommendations.
- Supplementary blogs released in correspondence with each major news release.
- Release of HG Perspective.
- Platform at HG Annual Investor’s Conference followed by viral video release of presentation.
- Organized and accompanied company’s President on road shows to Montreal and Toronto.
Results
The well-polished corporate story that HG had established ensured that all possible investor questions were addressed before they were asked. Rather than telling investors the meat and potatoes of the business, investors were presented with a case for the value proposition and a clear picture on the possibility of the organization becoming one of meaningful size. At the appropriate time, a road-show was organized and key introductions made by The Howard Group, which resulted in immediate buying from various brokers, fund managers and investor groups leading to company record highs of daily average trading volume.
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Case Study 8: Proactive Planning + Creative Execution = Positive Impact
March 2012 - January 2013
HG and the Client formed a working relationship in March of 2012. Management was proactive and ensured HG was constantly apprised of milestone timelines. This provided HG with the tools to build a strategic investor outreach plan to take full advantage of anticipated pending events and news.
To maximize the impact of an announcement of a collaboration agreement with a multi-billion dollar U.S. based conglomerate, HG arranged in advance for the Company’s CEO to appear on BNN immediately following release of the news. The appearance and news was widely followed on both sides of the border.
In advance of the CEO and CFO’s appearance at a New York conference; HG researched U.S. investment firms that were actively providing research on the client’s collaboration partner. HG conceived, managed and arranged multiple meetings with top analysts in the company’s sector.
Shortly after the New York meetings, Jefferies & Company issued an update to its clients, who are shareholders in our client’s collaboration partner. This resulted in a jump in the market capitalization by approximately $30 million. Shortly thereafter, a large U.S. based fund approached the client to invest $5 million.
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Case Study 7: “Opportunity Knocks” Conferences
October
Scenario:
- Every year in October, The Howard Group hosts an investor conference in Calgary.
- The event features 5-6 Howard Group clients and approximately 100 individuals, mostly sophisticated investors.
Kicking into Action:
- Each presentation is professionally recorded and posted online.
- Online Marketing: Marketwire sponsored Social Media Releases for each company.
- The model above illustrates The Howard Group’s online reach.
The Results:
- Conference Presentations received over 6000 views.
- The value for each participating company was less than $1 per view or lead.
- A typical roadshow to Toronto & Montreal costs over $100 per broker/analyst/fund manager lead.
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Case Study 6: HG - The Second Time Around!
July 2010 – April 2011
Scenario:
- A health supplement & biotech story with a product that is clinically proven to provide health benefits.
- A client through 2006 & 07, HG complimented strategies aimed at fund managers and sophisticated investors through numerous presentations and HG conferences. HG and its relationships assisted and participated in resolving an issue with a fund that had to divest of a large seven figure position in the client. HG was a key element of the team that saw the stock rise from under a $1 to over $8 during the first HG engagement.
- The stock ultimately plummeted to pennies from a combination of the economic meltdown and unrealized business expectations.
Kicking into Action:
- July 2011 – HG re-engages after the company comes knocking on our door. Immediately focused on market perceptions and dashed hopes as the business pieces were finally falling into place but a market cloud hung over the company.
- Messaging was dramatically re-vamped starting with an HG initiated commentary re-introducing the company. Expectations & disappointments were tackled head-on while painting the picture of what had been accomplished and what was on the horizon.
The Results:
- Stock jumps from $1.20/share to over $2/share within weeks of announcing re-engagement with The Howard Group, the release of the detailed HG commentary and the start of news flow from the client.
- Investors needed assurance that the company was moving forward and was committed to communication.
- Below is some feedback to “The Howard Group’s Introduction”
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Case Study 5: Mining The Online World For Retail Success!
May 2010 – December 2010
Scenario:
- A company with a historical copper, molybdenum and gold property in Nova Scotia.
- Substantial technical and financial support from a major China based resource oriented firm.
- The company was stuck with a $10 million market cap and sporadic trading.
- A major stock overhang appeared imminent with the forthcoming expiry of “in the money” warrants.
Kicking into Action:
May 2010 - The Howard Group engaged.
- Revised messaging to focus on Chinese technical expertise, financial backing, plans to expand through acquisition and exploitation of the east coast property.
- With a story too small for funds, all efforts were poured into attracting the attention of retail investors. Branding and name recognition were critical. A basket of initiatives were developed including, A) upgrades to client website B) client HG introduction letter to shareholders C) multiple contacts with brokers & investors D) client page on HG website E) regular HG client IR blog F) customized database G) online photo gallery H) completely revised investor presentation & corporate overview I) HG introduction commentary broadly released J) blog news and post on various investing portals K) Calgary & Vancouver road show L) Virtual Metals and Mining Conference M) “Opportunity Knocks II” HG Investor Conference N) corporate video.
The Results:
- Average Daily Volume – Pre HG – 60,000 -> Average Daily Volume – Post HG - 150,000
- Vancouver investment community embraced company as a result of its Chinese connection.
- Chinese investors were attracted to the story.
- Retail foundation was the key to liquidity. Online marketing to retail audience proved successful. Overhang of 10 million shares from previous financing was absorbed.
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Case Study 4: A Solid But Little Known Fund – Grabbing The Spotlight!
September 2009 – December 2010
Scenario:
- A subprime auto finance trust that fell from $4/unit to $0.30/unit during the economic crisis.
- The market didn’t appreciate the strength of the business platform and the management group.
- The story was known to a relatively small group of retail investors and a few institutional managers.
Kicking into Action:
September 2009 - The Howard Group engaged.
- New messaging is under pinned by management, pro-active measures, and financial stability.
- Push aimed at institutions, analysts and income minded retail investors.
- A series of key presentations in Toronto and Montreal attract initial interest from analysts and fund managers. A wide reaching online retail investor campaign was launched by leveraging a presentation video from HG’s October 2009 investor conference resulting in hundreds of views. The audience grew and the fund delivered the icing on the cake with solid financial results.
The Results:
- A key analyst which, influences institutional investors initiated coverage at $2. Past analysts re-introduce coverage.
- Institutional support grows. Important fund manager regularly recommends company on BNN tv as a top pick.
- Retail audience embraces the fund. CFO comments, “I don’t know what you (HG) are doing but we’ve never had so many calls.”
- Units move from $1.60 to over $7.
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Case Study 3: Striking Gold – In Many Ways!
June 2009 – January 2010
Scenario:
- Many investors had turned away from a long-running mining story as it had been full of promise but short on delivery.
- However, the company was sitting on a former producing gold mine, the inner workings of which had not been seen or appreciated by the general public.
- The company lacked the financial resources to conduct proper work and drilling programs.
Kicking into Action:
- June 2009 – HG maps out a plan for a video mine tour. The stock is languishing around $0.15.
- The messaging: There is gold and numerous visible high grade veins underground. The question is, how much gold?
- Activities: A large amount of on-site and & underground video was recorded in a “walking tour” conducted with the chief consulting geologist. The video was edited utilizing visual high-lights and the geologist’s audio (no narration) to address the potential of the project. In late June HG introduced the tour through its Insight client commentaries as well as advising various online resource and micro-cap investing groups.
The Results:
- Within weeks of the start of the online campaign, over 1,500 people viewed the video & read the commentary. Activity continues over the next six months with company news releases complimented by events created by HG.
- The stock moves up quickly breaking through $0.40 in mid-July 2009.
- HG utilizes the video as a tool to introduce the company to potential financing sources.
- September 2009, $2.1 million is raised through a long-standing HG relationship. The firm subsequently raises $4+ million for the company.
- The HG relationship introduces the company to a highly successful mining entrepreneur who ultimately becomes a director and then assembles his own team to take the project to a new level.
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Case Study 2: There’s More To News Than Just Releases!
September 2009 – December 2009
Scenario:
- A relatively unknown green tech story that is approaching profitability, a proven energy saving product and a distribution network around the world.
- Stock plunged to pennies with the economic chaos and market disappointment with slower than expected growth.
- Investor & broker distress on the heels of a $7.5 million raise @ $1.50/share.
- In September 2009 the company signs The Howard Group and is trading at $0.12 / share and has an average daily volume of 56,000.
Kicking into Action:
- The messaging: Time was spent to simplify and clarify the messaging. Leverage “green” appeal in the marketplace.
- Activities: Built marketing materials - investor presentation, fact sheet and “Introduction from The Howard Group.” Push materials to online communities, targeting retail investors. Client presents at HG “Opportunity Knocks I” Conference, video leveraged through online world. Extremely active meetings in Toronto & Montreal.
- As information is the fuel for the online retail investor world, HG exploits opportunities to go beyond “the news release” by providing common language blog commentary as well as supplementing the flow with events created by HG.
The Results:
- Stock moves to over $0.32/share, the average daily volume jumps to over 111,000 shares.
- Stories on company picked up by Clean Tech newsletters.
- Retail investing audience is the primary driver.
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Case Study 1: HG Steps Up – We’re All In!
September 2005 – December 2007
Scenario:
- A company with a high tech satellite-driven data solution for the airline industry.
- Business traction was much slower to develop than anticipated.
- Market cap was less than $4 million with very little daily trading.
- The few people who followed the company had abandoned hope due to delays and business disappointments.
- The company was financially exhausted and potentially weeks away from closing its doors.
However:
- Technology was proven, highly advanced and somewhat commercialized.
- Extremely large market opportunity.
- Superb business model of high margin recurring revenue with long-term contracts.
Due Diligence:
- Over the course of two months, a number of meetings were held with management to understand the business - capital needs, budget review and reasons for issues and delays.
- Meanwhile, the Howard Group assessed the market potential and advantages of the technology. A street survey was also conducted to detail the perspectives of large shareholders and the investment community.
Conclusion:
Very high risk – high reward situation. A myriad of business and sales issues existed; however the potential was considerable.
Kicking into Action:
- In December 2005 the company presented to the Board of Directors of Accolade Capital, General Partner for the Insight Limited Partnership, which is associated with The Howard Group. The presentation resulted in an immediate cash injection of $250 thousand.
- In January 2006 The Howard Group was engaged to provide Investor Relations services.
- In February 2006, a $2.2 million financing was closed with Howard Group relationships contributing $2 million.
The Results:
- New capital in excess of $12 million over the course of two years through Howard Group relationships.
- An additional $5+ million in warrants exercised.
- Significant institutional and brokerage support developed through multiple cross-county meetings.
- Shareholder base grew tenfold from approximately 400 to more than 4,000.
- A dramatic increase in average daily trading volume.
- Market cap grew thirty-fold to a high near $120 million.
- Analytical coverage
- Extensive press and media coverage.
Click here to download in PDF format.