Shareholder Identification & Stock Watch Programs
Since our inaugural issue in 1992, we have consistently emphasized the importance of shareholder identification programs. It’s simple: You cannot possibly communicate with investors effectively if you don’t know who they are…and what their top issues are.
In contrast, we approach so-called “investor targeting programs” with less enthusiasm. Particularly concerning large or sophisticated investors who do not hold your stock, there usually exists a reason for this, and understanding that reason is critical before attempting to treat them as potential “targets.”
As a regular reminder, your shareholder profile can undergo rapid and significant changes, especially in the presence of an “issue” or a potential conflict. It’s important to note that there are legal and ethical limitations on how much information can be known in a timely and reasonably accurate manner.
However, with a solid baseline of information, you can often detect potentially concerning activities such as significant sales or accumulations and troubling short positions. Moreover, you can proactively reach out to investors you wish to attract to understand why they are not currently invested. Top-notch “Shareholder Identification” firms typically possess insights into how your major shareholders usually vote on proxy proposals, along with knowledge of the key contacts for engagement and those less inclined to engage.
The paramount consideration, whether obtaining shareholder identification or utilizing “Targeting Services,” is to avoid the misconception that a “magic box” can handle all the work, provide complete current information, and generate all the answers. In reality, there is no substitute for PEOPLE. Individuals who can assist in gathering, analyzing, and interpreting ownership data, strategizing on potential scenarios, and devising a tailored game plan for your specific situation. These individuals understand that despite best efforts, there is data that cannot be legally uncovered.
Listings: Shareholder Identification & Stock Watch Programs
John Glenn Grau
InvestorCom recognizes the link between the knowledge of shareholders and their trading behavior, and the effectiveness in being able to communicate with them. Our ability to timely and accurately identify “who” owns stock and “why” trading activity is occurring allows InvestorCom to provide clients with the highest level of market insight and the ability to look far beyond the mask of shares held in “street” name. At InvestorCom this is what we call “Shareholder Intelligence.” Simply stated, it’s the knowledge of who currently owns your stock, what their motivation is for trading in your stock, and, of equal importance, how to act on this information.
The following is a brief list of what we offer with our Stock Surveillance service:
- Daily Monitoring and Reporting
- Weekly Trading Memos
- Executive Monthly Summary
- Shareholder Profiles
- Institutional Targeting
Gerry Davis
Morrow Sodali has extensive experience providing Strategic Stock Surveillance for our corporate clients. Since our inception more than 50 years ago, Morrow Sodali has been helping clients by combining superior data analysis and technology with strategic consulting to assess institutional ownership. Our stock surveillance experts monitor your stock, all day, every day, and track critical movements with real-time trading analytics. With emphasis on block trades and an intimate knowledge of trading activity, we provide a deep level of insight backed by years of experience tracking and analyzing stock movements, including activist accumulations, institutional sell-offs, short selling as well as other unique and often nuanced situations that result in stock price fluctuations. We monitor stock trading activity for companies of all sizes – from nano-cap to mega-cap – and take into account the trading patterns and context of companies within certain market capitalization parameters.
Morrow Sodali is a global corporate advisory firm that provides clients with comprehensive advice and services relating to corporate governance, ESG, sustainability, proxy solicitation, capital markets intelligence, shareholder and bondholder engagement, M&A, activism and contested situations.
From headquarters in New York and London and offices in global capital markets, Morrow Sodali serves over 1,000 clients in more than 80 countries, including many of the world’s largest multinational corporations. Clients include listed and private companies, mutual fund groups, stock exchanges and membership associations.
In 2022, Morrow Sodali celebrated its 50th anniversary and also secured majority investment from TPG Growth, the middle market and growth equity platform of alternative asset firm TPG. This partnership will significantly advance the firm’s mission of providing clients worldwide with unrivaled strategic advice and comprehensive support, enabling them to maximize value and expertly manage stakeholder relations.
Okapi Partners Market Intelligence Group specializes in stock watch (equity and debt surveillance): identifying real-time institutional ownership on behalf of publicly traded companies globally. The OMIG Team can:
- Identify who really owns a company’s shares
- Intelligently respond to senior management inquiries
- Quantify effects on institutional targeting programs
- Develop institutional support for an engagement campaign or shareholder meeting
- Monitor which investors are trading in and out of the stock on real-time basis
Okapi Partners’ combination of proprietary databases and unparalleled knowledge of the institutional investment community allows us to deliver timely and accurate information to clients faced with an activist campaign, a merger or a De-SPAC transaction.
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