Connect with us

Markets

A Guide to Better Investor Communications

Published

on

Nigeria investment
  • A Guide to Better Investor Communications

One of the greatest issues that seasoned investors see, which is also something they also struggled with as young entrepreneurs is how to communicate with existing investors.

It is easy for young entrepreneurs to forget all about investors until they need more money. Unfortunately, that’s the worst time possible to approach them again. Investors don’t like the idea of being viewed as ATMs.

The most suitable approach is do it early and often like the old Chicago voting adage.

Talk to Investors Early and Often. Create a process for communicating informally once monthly and more formally once every quarter. Investor communications are best delivered via writing, either through email or regular mail. The monthly report sent to investors should ideally be a page or two and may include Profit and Loss (P&L) information. You should include detailed financial information in a more substantial quarterly report.

In person meetings and phone calls can be beneficial too. Consider scheduling brainstorming sessions or semi-annual meetings with investors, either via conference calls or in person. Investors love giving advice and pulling together a lot of brainpower is always a good thing.

Keep in mind that you do not have to do everything yourself.

Investors have a stake in your success and would like to help. Their experience provides great insight and their connections can help your business grow and provide more resources. Ensure that your investors are kept in the loop and discuss both your challenges and successes.

Honest and consistent investor communication offers 5 main advantages:

–           Promotes continuous evaluation of your business model and company on a quarterly and monthly basis.

–           Forces you to be accountable to investors and yourself too.

–           A documented history of the performance of the company and a strong record of investor communication will help attract new investors according to EMR.

–           Strong investor relations increase the chances of investors identifying potential areas of partnership, growth, or even new business angles.

–           If you act like a big business you will become a big business. Investor relations and reporting and critical infrastructure components for larger companies and you need to start developing this infrastructure early on.

The most important thing is to ensure that you keep communications and conversations with investors honest. It is important to avoid sugarcoating the truth. If you consistently talk to investors, they will be readier to help, even when the going gets tough.

What do you believe are some of the key challenges and benefits to investor communication?

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Advertisement
Comments

Crude Oil

South Africa’s iGas, PetroSA and Strategic Fuel Fund Merge to Create South African National Petroleum Company

Published

on

markets energies crude oil

The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).

The merger will be effective from 1 April 2021 and the new company will be called the South African National Petroleum Company.

The merger, driven by the pursuit of implementing a new company that has a streamlined operating model via the development of a shared services system and a common information platform, comes a few months after cabinet approval and the confirmation that PetroSA had incurred losses of R20 billion since 2014.

Additional factors which prompted the move included the determination to strengthen PetroSA which had not had a permanent CEO in five years prior to the appointment of CEO Ishmael Poolo last and, had become majorly ungainful since its failure to secure gas for the gas-to-liquids refinery project in Mossel Bay.

While the merger deadline has been set, the portfolio committee expressed reservations to the department’s likelihood of meeting the deadline, considering the existing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current insolvency and liquidity challenges, the official press statement on the briefing revealed.

“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”

The African Energy Chamber welcomes this move and acknowledges that this is yet another step supporting the country’s determination to restarting the engines of sustainable growth and the transformation of energy policy and infrastructure.

Continue Reading

Crude Oil

Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked

Published

on

oil

Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities

Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.

On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.

One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.

It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.

Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.

Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.

However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.

Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.

Continue Reading

Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Published

on

Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.

 

Continue Reading

Trending