Tales from Wall Street: Dealing with the Angry Investor

It’s been a very rough last few days on Wall Street. After nearly 20 years of doing investor relations, I’ve learned to weather the storm when it comes to crashes, corrections and the impact of what the Fed says (or doesn’t say) on any given day.

That said, investing is not just an intellectual exercise, but an emotional one, too. Whether it’s the Dow dropping 600 points, or less than stellar earnings results, chances are that if you are a public company CEO, CFO or investor relations professional, you’ve dealt with an upset investor.

Following are my dos and don’ts for dealing with an angry or upset investor:

Do actively listen. The best way to do this is to take good notes on what the investor is saying.

Do show empathy. Acknowledge what the investor is saying (and respectfully ask for clarification when needed). Treat every investor with genuine respect.

Do be calm, matter of fact and professional. Dealing with a professional or personal investor’s investments can be highly emotional. Be conscious of your body language and tone of voice. If an investor is profane or abusive, don’t respond in kind. Instead, remove yourself from the situation if you feel tempted to “fight back.”

Do correct misinformation and take the emotion out of the exchange. Avoid attacking the investor’s emotions or feelings about a stock when addressing any misinformation they’ve brought up. Your job is not to change their mind about how they feel about a stock – but to present them with factual information.

Don’t respond with sarcasm. While it may be OK in context among friends, it has the potential to be misinterpreted in a written conference call transcript or when an investor posts what you said on a message board.

Don’t get defensive or try to “solve” the issue right away. Wait for the cue or ask the investor for permission to ask questions or respond.

Don’t say “The stock is turning around or it’s going to go up soon.”

Don’t, under any circumstances, try to advise the investor on whether or not they should keep or sell a stock. If the investor asks you, “What would you do?” the appropriate response is “It would be inappropriate for me to advise you on whether you should buy or sell your stock.”

Do talk about your company’s “investor” story. Each company has its own unique investor thesis. Emphasize the fundamentals of your company’s story.

Do be proactive in your response, but don’t promise anything you can’t deliver. If you don’t know the answer, don’t make one up. There is nothing wrong with saying “When is a good time for me to get back to you on this issue?”

Do keep your answers short and to the point. It can be tempting to try to add additional assurances or information to your response, but when dealing with public company information issues – the best response is to stick with information already public.

- E.E. Wang, ewang@pondel.com

Everything is Awesome, Not

Awesome stampJust type the word awesome into a Google search and about 1,300,000,000 results will appear. The word is so ingrained into our popular culture, it’s hard not to watch anything on TV or go anywhere without someone using “awesome” to describe something cool or hip.

Countless articles and hundreds of thousands of pages on the Internet are dedicated to the overuse of the word. Several print and online magazines have put awesome on their list of banned words, including an article in the PR Industry’s trade magazine Ragan.com, saying, “let’s stop using it [awesome] as our default every time we are too lazy, busy, insecure, stupid or whatever to think of a more original or relevant word.”

Originated in the late 16th century from the words “awe” and “some,” awesome, according to Merriam-Webster’s dictionary, is an adjective that means causing feelings of fear and wonder or awe. Believe it or not there’s “awesomeness” as a noun and “awesomely” as an adverb. Oy vey.

As experts in the communications field, we try to avoid using jargon, slang or clichés to describe a product or service, or anything for that matter. Let’s not even get into words like disruptive, innovative or state-of-the-art. Those words can make any good writer cringe.

According to some writing experts, there are scores of other words that can replace awesome. Amazing?  Maybe, but probably number one on the list of the world’s most overused word. Brilliant? More of a British correlation. Dazzling? Let’s get real. Fabulous? Just doesn’t feel right. Spectacular? Boring.

The truth is there is no real word that can really mimic the same visceral reaction or meaning evoked by the word awesome. The problem is that awesome is used for pretty much everything, from describing a great-tasting doughnut to recounting MLB’s 2015 Home Run Derby. Finding new and exciting words will evolve over time, but until then, it’s hard to deny the awesomeness of awesome.

-George Medici, gmedici@pondel.com

Tales from Wall Street: Surviving Earnings Season

If a non-deal road show is a planned marathon made up of many, many sprints – earnings season is like a sprint that feels like a very long marathon.

At the risk of sounding a bit like a New Age-y Californian, here are the tips for how I survive earnings season:

  1. Stay Fueled. For you, it may be a Starbucks triple espresso, but for me, it’s my morning smoothie. My personal favorite recipe has 2 cups of kale or spinach, ½ a red grapefruit, ½ an orange, 3-4 strawberries, a few slices of Persian cucumber, a handful of raspberries, 1-2 tsps of raw maca powder (for extra pep in my step) and one tablespoon of chia seeds for protein.
  2. Find your Earnings Season touchstone to maintain your mojo. The most frustrating part of any earnings season is the “middle.” It could be the script’s not done, your team’s onto the XXth revision, you just found out that Yahoo’s printed the wrong analyst estimate, or you’re simply wondering how you will get everything done by Earnings Day.

Maintaining your mojo can be hard but incorporating fun little rituals and having a touchstone activity, can help refocus and reinvigorate your Earnings Season ninja skills. For me, it can be as simple as taking a moment to call or text my hubby* with a quick hello or performing freeway karaoke to my favorite IR songs to remind me that there is life outside of earnings season.

  1. Get Some Good Sleep. It can be hard getting a full night’s sleep when your mind is filled with anticipation for that upcoming earnings call. But as anyone will tell you, a good night’s sleep can do wonders for making sure you are feeling your best and on top of your game come Earnings Day. Research shows that it’s not about the hours you get, but the quality and depth.  Here’s my favorite sweet treat recipe for getting a good night’s sleep the evening before Earnings Day:

1 cup almond milk

1/2 a frozen banana

2/3 cup frozen bing cherries (pitted)

1/4 tsp nutmeg

1/2 tbsp. of raw cacao nibs

1 tbsp honey

Toss all ingredients in blender. Mix until smooth.

  1. Put Together a Fun Earnings Day Ritual. It might be having your team wear a certain color on earnings day or going out for a quick bite at a favorite local hangout, but I always find that sharing a simple ritual or tradition before the conference call is a fun way to make sure that your team gets some fresh energy before tackling that last stretch of your Earnings “sprint.”

You’ve researched, written, edited, rehearsed and planned for this day. Now your investors get to hear about your results for the first time. Good luck!

*(My hubby has been my rock through nearly 50 earnings seasons to date and despite his own busy work schedule, still has managed to send me a quick “good luck and I love you!” text just before each earnings call. Thanks hon! This one’s for you – and all of the understanding spouses and significant others who support the CEOs, CFOs and IR professionals during and outside of earnings season.)

- E.E. Wang, ewang@pondel.com