Tools of Modern Small Cap Investor Relations (Part 1 of 2)

So you are looking at creating investor awareness, improving your liquidity and creating a buzz around your OTCBB, Pinksheet, AMEX or NASDAQ nano, micro and small cap stock (or penny stocks). Where do you start and what options do you have in the world of Web 2.0 and modern investor relations?

First of all, you need to realize that old traditional methods of investor relations are stubbornly being re-thought and adapted to the modern age of the web 2.0. Shareholders are now global. 1 – 1 communication is dead. Already the majority of small cap research is done online and increasing year on year (74% ‘o8, 78% ’09) (Agoracom). But many are saying, with the death of the old traditional ways, by the explosion of new media, there will be an explosion of new investors.

Although the old traditional methods of investor relations; direct communication from the company (corporate websites, press releases, SEC filings) remains the most trusted form of communications, the tide is turning in favor of new media. And as the younger generation starts moving into stronger financial positions where they become the main buyers of shares, new media will dominate.

The key now is formulating a plan of action with regards to an online presence, communication and information. It is no longer a one way street, where the company issues information to the public. Now the public has a say in that information and often writes the information.

The main obstacle facing new media at the present time is the unreliability of information, with investors analysts preferring trusted sources of the old media, that has moved online (NY, etc) This will change as the younger generation who are heavily influenced by new media start moving into positions of stronger financial abilities.

So as new media works its way in further to decisions, companies need to be alert for changes.

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