A masterclass in investor education.
Investor education is one of the best opportunities that listed companies are underutilising to deepen their investor relationships.
Investors always want to know more, it’s just a matter of providing it in a way they can understand.
Brookside Energy (ASX:BRK) recently executed an educational email campaign to thousands of investors. Here’s what they included, and why it’s so effective.
Through open and upfront communication, Brookside Energy showcased the power of investor education to deepen existing relationships with shareholders.
The transparency that they displayed not only informed their investors about the intricacies involved in share price movement but also contextualised the company's strategy, positioning the buyback as a beneficial move for shareholders.
Share price volatility is a common concern for most investors, but it’s often difficult to understand what drives it.
Brookside recognised this shortfall and created an email campaign to educate investors on the factors that can influence a day-to-day share price.
By clearly defining the factors in and out of management’s control, Brookside provided context on the role of management and how they support the fundamentals of the business.
Brookside were transparent. Share prices can face downwards pressure even if the fundamentals are robust as a result of market dynamics.
And even though that’s not something Brookside can control, it is something they can take advantage of, which they’re doing via their ongoing buyback.
Investors can now view their buyback as an opportunity to take advantage of this price action, at a significant discount to the company’s NPV.
As a result of one educational email, Brookside were able to connect with thousands of their shareholders.
More importantly, they were able to broadly educate them on the factors that drive price action, the role and importance of management, and provide context on their approach to price opportunities.
300+ leaders of public companies use InvestorHub to engage retail effectively and control their share price.
Our discovery calls are all about getting to know your business. No hard sell, no jargon. Just a friendly chat about how we might be able to make your listed experience better.