As we are moving ahead with technology development to an inflection point it is time to replace the MZ group as they are not fulfilling what a real investor relations department can do. It is best to do it before revenues come in so the new head of investor relations can have in depth discussions on communications over the past several years, identify what management is looking for and then advising on changes to the company's approach that should be considered. Developing a strong level of communication with Michael Lebby and other senior management is necessary to prepare to ramp up communication coming out of the department taking into account current NDAs and identifying how to communicate within those bounds (after all there has got to be room for improvement).
MZ group was a cheap option but only a superficial one. They lack deep knowledge of the company and this prevents answering questions appropriately. Michael Lebby has been handling too much of that directly and someone needs to be the point person to improve consistency. A real investors relations department will be able to handle the expected increase in inquiries that will come when meaningful news begins to come out.
A really good investor relations department will show these strengths:
Help the company establish goals in communication. Improve communication with shareholders, prospective shareholders, institutional investors and analysts. Improving communication centers on articulating corporate strategy in the clearest words possible. Answering questions within guidelines but understanding what else needs to be said to to promote the company's agenda. All of these are both educational events and opportunities to promote the company as well.
This includes helping to manage dialogue in earnings reports, releases, corporate presentations at conferences and discussion of financing and debt levels.
A good investor relations department runs interference to prevent the wrong person speaking (think Marcelli). Consistency of messaging is important.
IR should advise the company on speaking opportunities with a good audience and seeking those out so management doesn't make less than useful choices.
IR will gather intelligence and alert management to looming problems and miscommunication to clarify investors concerns. IR will also search out disinformation sources and help management counter such.
IR should advise Dr. Lebby on using words to clearly state what the company wants people to understand with the messaging ie help limit ambiguous language.
IR could be reaching out to analysts with personal updates on corporate progress and be the point person to institutional investors.. This is the sales function of the department.
The IR department is the eyes and ears of the company and keeps management up to date on market conditions and target market news. This might come from dialogue with current and prospective investors and their concerns. Helping management to understand shareholder concerns should be paramount and this happens when IR has enough time to spend answering questions that come to the department. This of course frees up management to try and fill in gaps that MZ group has left them.
Good messaging requires updates and proper messaging on the company website. Educating investors with an understanding of the technology and its versatility is important to encourage new investors to try and learn more. Doing so with easy to understand information and then guidance to more sophisticated resources of information would be helpful.
A good IR department helps management avoid communication mishaps and missed opportunities. They should get smart and move on from MZ Group to an experienced lead in Investor Relations.
