Alkaline Water Comp Inc (WTER)

[Roland Rick Perry]

IR Budgets.

Spencer, the National Investor Relations Institute reports average IR budgets range from $500,000 to $2.4 million (small caps to large caps). Many tools are used, including third-party research reports, IR websites, conference calls, investor conferences, staff, investor meetings, etc. These all cost money.

Publicly traded companies must communicate with their shareholders and potential investors as the higher the market valuation, the less the dilution when undertaking financings to fund growth. Which is the whole point of being publicly traded. This is a non-optional obligation when you are a publicly traded company, period.

Due to changes in investment banking and the reduction of small-cap broker/dealers in the past 20 years (investment banking fees paid for research back then), there are NO broker/dealers who provide research for companies with market valuations under $500 million, so any company seeking coverage - has to pay for it. Just like they pay for accountants, SEC lawyers, et al.

Who the publicly traded company hires to provide the research is another question. And the only answer to that question "how does the report read?" Wild price targets, outlandish financial projections? Or does it read more conservative?

https://www.niri.org/niri/media/protected-documents_excludeglobalsubs/analytics%20reports/ir-budget-and-staffing-analytics-2016.pdf