Here is how I see it: 1) Investor relations should be done continuously, not just when it’s “nice” to do 2) if the stock seems expensive, you have to push this “communication” twice as hard to spark interest among potential buyers 3) conversely: if the stock seems cheap, maybe right now is precisely the time to be banging the drum for the company among investors.
Will potential investors ask tough questions about the company’s performance and future? Well, of course. Would it be easier to convince them if there were solid numbers backing it up? Well, of course. But if you genuinely believe in the company’s strategy and execution, why not use those to justify the investment case? Does anyone know the future? Well, no. But should you be able to communicate the company’s values, strategy, how you aim for success, and what that success might look like (along with the risks)? Well, you should be able to, and you should communicate it. Let investors make their own decisions about its attractiveness.
I am completely on the same page here. My point was more that, right now, management’s development time is better spent on developing the operational business rather than significantly ramping up the volume of investor communications. This was partly based on investor feedback I gathered while visiting a group of our former investors last autumn. Communication must, of course, be ongoing, but in the short term, it’s better to strengthen the “say-do” ratio on the “do” side. Tough questions can and should be asked, and I don’t find them problematic at all.