• Raise capital overseas.
• Build market awareness and shareholder value.
• Avoid the burden of U.S. regulation.
• Get more value out of existing foreign listings.
• Gain easy, inexpensive access to European investors.
• List on a liquid, energy-oriented exchange and raise capital there.
• For Non-U.S. Institutional Investors Only

Management of public companies often cannot understand why investors capitalize their company’s future earnings power at lower price-to-earnings multiples than that afforded other companies with similar fundamentals, especially peer competitors. The ability to create investor demand for a corporation’s publicly-traded stock represents a challenging management opportunity. One way to create additional investment demand is to tap into additional large investor pools available to American companies in international markets.

If successfully achieved, efficient pricing of one’s stock and fair market valuation satisfy a host of corporate needs ranging from shareholder satisfaction to capital formation and employee morale. If the opportunity is neglected, inefficient pricing and undervaluation may subject the corporation to numerous risks ranging from prohibitively high cost of corporate growth to potential vulnerability to takeover and threatened executives’ job tenure. Corporate managers that merely satisfy their legal obligation to disclose, ignore the opportunity to optimize their share value. They choose to exert no influence on the market’s pricing mechanism and the equity valuation process. They believe that operating results alone should “do the talking”. Operating results do speak, but to the past, not to the future.

The market values a company’s stock in the present based on expectations of earnings in the future. It is the responsibility of astute managers to concern themselves with how the market perceives and values their company, and what their stock price implies about investors’ expectations for their company’s future returns. Opportunistic managers create value for their shareholders by correcting market mis-perceptions and mis-pricings. They shape rational expectations of their company’s economic returns by key financial industry participants. Market sponsorship and pricing efficiency are real problems for emerging companies which are small in size (market capitalization), often under-researched by analysts, and under-owned by institutional investors. Their shareholder base may be narrow and their shares may be inactively traded and volatile. They suffer from lack of interest from Wall Street.

The real problem for small capitalization companies is that lack of interest and pricing inefficiency may persist over time because managers of these companies do not know how to trigger the demand-creating process. It is our objective to help corporate management understand and use the equity valuation process. We help them think as buyers and owners of their shares, as well as managers.

The demand for a company’s stock, or the absence of sufficient demand, is the result of investors’ perceptions of 1) the company’s performance or 2) the company’s asset valuation relative to market value. Recognizing this, we assist our clients in shaping a clear perception of future performance and value, and in communicating that perception to the financial industry participants whose influence tend to determine share prices. We understand what attracts “buy side” analysts and portfolio managers and “sell side” analysts, and through one-on-one relationships, use them to create demand for clients’ shares.

We assist our client companies build shareholder value through helping them:

• Create an additional investor base for the companies – in Europe or Asia, for example – through listing their stock on the appropriate international market there.
• Privately or publicly raise additional capital for our client companies.
• Achieving research coverage on their companies, and the distribution of initial and follow-up research reports to institutional investors throughout the international marketplace.
• Scheduling one-on-one and road-show meetings throughout the international marketplace.

• Stock prices that are depressed relative to those of peer competitors, and industry and general market indices.
• Higher returns required by investors because of higher earnings estimation risks.
• Limitation of corporate acquisition opportunities using exchange of stock.
• Denial of access to capital at a reasonable cost, making financing difficult and more dilutive.
• Failure to maximize shareholder wealth and erosion of shareholder loyalty.
• Reduced impact of significant corporate developments on the price of the stock.
• Attraction of corporate raiders.
• Shortened executives’ careers, and inability to attract and retain the most talented employees.
• Company morale that is lower than it should be.