Road Show Persuades Institutional Investors

Category

Communications / Investor Community / Medical Devices

 

Situation

The stock price of this medical products company was highly volatile because the shares were in the hands of a few large institutions that continually traded the shares.

 

Process

A range of small and medium-size institutional investors with better buy-and-hold records was identified. The company's shares were marketed to these institutions via a series of road shows – 82 firms were contacted through 114 meetings in 12 cities during the course of a year.

 

Result

The number of institutions owning the shares increased 49% from 133 to 198.  The beta (volatility) of the share price was substantially dampened from 1.20 to 1.07.