Finding Shareholders In Unconventional Ways?

By: ispeculatornew
Date posted: 06.28.2011 (5:00 am) | Write a Comment  (0 Comments)

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Having a rising stock price is a good sign for any company because, it makes it easier to raise money, take on new debt, attract and retain employees (through stock and options based compensation), etc. I think it’s fair to say that any company would love to have its stock move higher if given the choice.

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Standard education suggests that the best way to have a strong stock is to have strong results, a solid balance sheet, transparent operations, excellent management and clear guidance.I don’t think any of you would argue with that right?

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It seems like some companies are trying alternative methods (we’ll call them that way for lack of a better term) in order to attract investors to their funds. Some try to appeal to specific investor segments such as dividend investors (by providing a strong and growing dividend), social investors (being green, ethical) and many other types of investors. One thing I had not seen however was a company trying to attract investors by more unconventional methods. Look at the different ads that I’ve seen running multiple times around the internet. If you look quickly, they might look like ads for a dating website, for Hooters or other types of activities geared towards men. But no, these are actually ads for potential investors for Obscene Jeans (OBJE), a low trading, lower priced stock that wants more attention. Needless to say it’s an original way to find potential investors.

Good Idea?

I think there many different ways such a tactic could be viewed:


-Ability to get investors to consider the stock who might have never heard of the company
-Certainly an original marketing plan that might reflect a smart management style


-Is this company really spending funds on this advertising campaign? As a shareholder, I’d much prefer they paid out a dividend
-It does not reflect the most professional

What are your thoughts?

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