Market Volatility Got You Stressed? Try Laughing … And That’s No Joke

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Remember Henny Youngman? He was an American comedian, famous for his mastery of the one-liner, whose best-known quip was “Take my wife … please.”

Here’s another one-liner, not Youngman’s, but not bad, at a time when so many investors these days recalibrate their portfolios: My trusted wealth manager just started working on a retirement plan. He doesn’t know it yet, but unfortunately, it is his!

While having a good sense of humor can’t cure all ailments or make the stock market go up, a good laugh during stressful times can do positive things.

Take my wife, Fay, please. No! I mean listen to my wife, Fay, a psychotherapist who knows a thing or two about laughter and the positive things it can do.

“Laughing has great short-term effects on one’s mood, as well as on one’s body,” Fay told me over dinner the other night, on the day that the Dow dove more than 1,100 points. “Laughter stimulates the heart and lungs and increases endorphins. It decreases blood pressure, creates relaxed feelings and even improves the immune system.”

Thank you, Fay. While the stock market these days is no joke, there are many jokes to be found about it. These below may not be quite as funny as Youngman’s one-liners, and certainly rank very high on the cheesy factor, but hopefully will ease a little tension among those that follow the market as we all plow through these tenuous times:

  • How do you find a small-cap fund manager? You find a large-cap fund manager … and wait.
  • Enduring the current stock market decline is worse than a divorce. You lose half your money, but your spouse is still around.
  • Why are nudists bad for stocks? They are associated with bare markets.
  • I figured out the secret of how to make a million bucks in the stock market. Invest $2 million.
  • Recently, I started to invest heavily in penny stocks. It seemed to make a lot of cents.
  • My friend is smart, honorable, and exudes old-school charm and chivalry, but he hates the stock market. When I asked him why, he said, “Gentlemen prefer bonds.”
  • Why was a stock trader recently electrocuted? He shorted Tesla.
  • In the stock market today, Procter & Gamble, maker of Charmin tissue, touched a new bottom, and millions of investors were wiped clean

Gallup’s 2022 Economy and Personal Finance Survey, conducted in April, found that 58 percent of all Americans own stock. With the market declines we have been experiencing lately, that’s no laughing matter. But it does pay to laugh, at least a little.

Roger Pondel, rpondel@pondel.com

New Class-Action Lawsuits Lurking: Tips for ADA Compliance on Websites, While Doing the Right Thing

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Recently, several of our California-based clients received letters from attorneys who are allegedly representing disabled persons, stating that those clients’ investor relations websites are not fully WGAC and ADA compliant.

With each communication, the attorneys specifically cite “not compliant for blind persons.” In some cases, they are requesting remediation within a certain timeframe. In other cases, however, real monetary damages were sought.

Is this ambulance chasing or a real problem?

For blind people or those with low vision, images without text equivalents, certain fonts and colors, and PDF documents can make websites difficult to navigate.

According to the CDC, 61 million Americans live with disabilities. The U.S. Census Bureau says that almost 19 million Americans have difficulty seeing or hearing.  Many websites, including investor relations websites, do not currently make accommodations for these users.

For blind people or those with low vision, images without text equivalents, certain fonts and colors, and PDF documents can make websites difficult to navigate. A recent article from NBC News details efforts by disability advocates, including that “federal lawsuits claiming websites are not compliant with the ADA rose by 12 percent last year.” 

Companies, publicly traded or not, should do whatever they can to provide a solution, so as not to leave anyone behind, as well as to be compliant and reduce the threat of legal action.  Of course, regardless of the threat of legal action, it’s the right thing to do.

But where does one start? 

First, some basic definitions:

  • WGAC – Web Content Accessibility Guidelines – Developed in cooperation with individuals and organizations around the world, WGAC has a goal of providing a single shared standard for web content accessibility.
  • ADA – Americans with Disabilities Act – Put into law in 1990, the ADA seeks to provide equal opportunity for individuals with disabilities.

Second, there are several tools to determine how closely a website is to being compliant:

  • The WAVE Web Accessibility Evaluation Tool allows a company to identify accessibility and WCAG errors. Running a URL through the tool will provide summary of accessibility errors.
  • Similarly, Web Accessibility by Level Access allows a company to determine the “health” of a site. There are many others, some free and some paid. (We are not endorsing the veracity of any.)

Once a determination has been made that changes or additions are necessary to ensure WGAC and ADA compliance, here are some practical tips:

  • Take a look at the WGAC guidelines to familiarize yourself with the requirements.
  • Have your website developer (both for your corporate and IR sites) run your sites through a tool like those listed above to see exactly what changes need to be made.
  • Considering purchasing code (usually a widget) that helps makes your website more compliant. There are several, and again, we are not recommending any particular vendor. Be aware, however, that these widgets are not without issues (see the NBC News article referenced above and this one at Forbes.com) and are not a panacea.
  • Recognize that if your corporate site is accessible, but your IR site is not, you are out of compliance. Similarly, if the home page of your corporate site and IR site are accessible, but the pages beneath that are not, you are out of compliance. Even if everything looks great, but you haven’t remediated PDF documents posted to the site, you are out of compliance.
  • Remember that websites are not static.  Any time a change is made to content, links, colors, etc. you run the risk of non-compliance.
  • Work regularly with your legal team to ensure you’re on top of all current and future regulations and requirements.

Laurie Berman, lberman@pondel.com

Protecting Your Brand in an Age of Social Justice

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PondelWilkinson’s CEO Roger Pondel was among the speakers of a panel discussion hosted by the Association For Corporate Growth – Silicon Valley that provided keen insight on the impact of social justice movements on corporate brands and reputations. Click to watch the full discussion below.

Public Companies Prosper in Pandemic

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PondelWilkinson’s CEO Roger Pondel was interviewed by Reporter Mark Madler of the San Fernando Business Journal for a special report titled, “Public Companies Prosper in Pandemic.” Read the full story below.

SFVBJ_Digital_Edition_2021-07-19_page13-2

SPACs: No Small Potatoes, and Still Growing Like an Idaho Spud

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It is nearly impossible these days to avoid SPACs, which most of you know by now stands for Special Purpose Acquisition Companies.

According to SPAC Insider, there were 226 SPAC IPOs from 2009 through 2019, compared with 248 in 2020 alone. No small potatoes as a financing vehicle, SPACs this year will experience yet another spurt of explosive growth.

Mark Y. Liu, partner at Akerman LLP, who hosted a recent webinar on the topic, said those 248 SPACs raised $83 billion last year. Amazingly, 550 SPACS were in registration as of March 31, 2021, looking to raise $162 billion more. And SPAC Analytics reveals that SPACs made up 55 percent of all IPOs in 2020 and 76 percent of those thus far in 2021.

Sometimes known as “blank check” companies, SPACs are typically publicly owned shell companies with no operations, but with mandates to acquire private operating companies, usually in a specifically stated sector. If the SPAC does not complete a transaction within 18-24 months, it is liquidated, and funds are returned to the company’s investors. 

Trend or a fad? 

SPACs are growing like Idaho spuds and loved by investors.

While the numbers appear to say “trend,” Business Insider recently noted that investor appetite for SPACs is declining. Additionally, SPACs have come under scrutiny by the SEC over reporting, accounting and governance practices.

On the other hand, and supporting the trend side of the equation, Goldman Sachs estimates that that SPACs could drive $900 billion in M&A enterprise value in the next two years, with nearly $129 billion of SPAC capital currently searching for acquisition targets.

James Keckler, from D.A. Davidson’s investment banking group, and on the webinar with Liu, noted a few things to watch for on the horizon. He believes SPACs and their acquisition targets will get even bigger; that celebrities will continue to increase their involvement with SPACs; and that there could be multiple companies involved in a SPAC merger, versus the typical one-to-one model currently being utilized. Does that mean conglomerate?

The real question:

Are SPACs good for sponsors, the acquired companies and investors? The answer according to Liu, and others, is a resounding “yes” for all three. 

For SPAC sponsors, the benefits include access to capital markets, founder warrants and common stock incentives, and the ability to use both cash and stock for acquisitions. For potential acquisition targets (this one comes from Covington Capital Management), the ability to skip the tedious process of filing a registration statement and bypass a roadshow is attractive. And for investors, the positives include redemption rights, $10 per unit liquidation value and liquidity. 

On the downside, and not that much different from any company going through the IPO process, are the costs of going public, the reporting requirements, market oversaturation, and as some industry watchers have noted, SEC scrutiny (although this could be a good thing for investors).

Whether one is a SPAC investor, merging a company into a SPAC, or forming one, below are a few sound principles to practice:

  • First, a public company is a public company. No matter the capital structure, management team or industry, all rules and regulations governing exchange-traded securities must be closely followed.
  • Next, it is vitally important that communications are complete and transparent, both requisites to build credibility and a loyal investor following.
  • Third, fourth and fifth, research the management teams and their backgrounds; understand what the investment opportunity is really about; and ensure that the language in all documents is easy to understand, with jargon kept to a minimum.

Lastly, although there are many more “secrets” that we readily share with our clients, please know that SPAC formation, merging, and investing are not necessarily quick ways to riches. Old fashioned performance, and maybe even going public through the tried-and-true method established by the SEC in 1933, usually will win out in the long-term. But for right now, SPACs are growing like Idaho spuds and loved by investors.

Laurie Berman, lberman@pondel.com

Roger Pondel, rpondel@pondel.com

Taking America’s Pulse Online

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The Pew Research Center recently announced it would be conducting the majority of its U.S. polling online, much like most other public opinion surveys these days.

Until recently, phone-based surveys were the de facto standard for opinion polls. According to Pew’s own research, the number of surveys conducted over the Internet “have increased dramatically in the last 10 years,” driven by available technology and lower costs.

What shifting to online polling means for our long-term phone survey trends | Pew Research Center

The paradox is that people respond to online and phone polls differently. Pew calls this the mode effect, when responses to some of the same questions are different depending on the interview format.

For Pew, switching to online polling after years of telephone surveys will have an impact on quantifying historical data. This also may influence how media report on the center’s year-over-year trends.

Online polling methodologies may be shaping a new generation of survey taking. The good news is that trusted pollsters are transparent about these approaches.

And when it comes to the pros and cons of online vs. telephone surveys, a simple Web search will yield myriad results, including observations from Pew, as well as in Forbes.

Most polling firms and universities use a combination of online and telephone survey methods. It’s essential, however, that online surveys produce statistically accurate data, especially when the results are used by media.   

To help ensure reporting accuracy, the National Council on Public Polls published a list of 20 questions a journalist should ask about poll results. The irony is that reporters don’t have time to review questions because of today’s ultra-competitive “real-time” news environment. 

General consensus says polls serve a greater good helping define public opinion on everything from brands to policy. Media love surveys too. So much so that The Hill launched “What America’s Thinking,” a Web TV show that focuses on the latest news about public opinion.

As storytellers, we rely on accurate trends to help shape different narratives on behalf of our clients, whether that data is derived from the Web or via telephone.

— George Medici, gmedici@pondel.com

Twitter’s Double Standard – A Case Study in Crisis Communications

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The power of Twitter is unparalleled especially when the “news” is filled with high stakes and lots of drama, such as in the case of movie mogul Harvey Weinstein.

A slew of actresses and female Hollywood A-listers recently have come out publicly corroborating Weinstein’s sexual misconduct, spurred by actress Rose McGowan, whose Twitter account had been temporarily locked after a series of posts about The Weinstein Co. founder’s sexual wrongdoings, including toward her.

Twitter’s reason for locking McGowan’s account was because one of her tweets violated the platform’s terms of service, which included a private phone number. The account was eventually unlocked and Twitter added, “We will be clearer about these policies and decisions in the future.”

Twitter’s action against McGowan prompted much resistance, including a Vanity Fair article alluding to the platform’s hypocrisy, referencing other tweets from the U.S. president and even white supremacist groups. Twitter contends it “will not ban content that is newsworthy or has public-interest value.”

Jack Dorsey, CEO of Twitter in 2016. Photo credit: CNBC

Jack Dorsey, CEO of Twitter in 2016. Photo credit: CNBC

While the story is newsworthy, a technical analysis can see where Twitter may be consistent in its user policy. Needless to say, celebrities are more inclined to make news.

Take actress Alyssa Milano for example. The “Who’s the Boss?” star jumped into the Weinstein fray by initiating a “me too” campaign, tweeting, “If you’ve been sexually harassed or assaulted write ‘me too’ as a reply to this tweet.” The tweet went viral, sparking tens of thousands of engagements, while generating traditional media coverage.

The good news is that Twitter gives anyone the opportunity to participate in the public narrative. The not so good news is that outrageousness, conflict, fortune and fame, is what cuts through the clutter, often leaving lesser known individuals and organizations the silent majority.

Twitter is in sort of a crisis, too. Stories like the Weinstein affair keep the social network relevant and included in mainstream media coverage, although it’s hard to determine if this is having a positive impact on ad revenue since the company’s stock continues to languish since its 2013 initial public offering.

Even though 500 million tweets are posted on Twitter every day from 328 million monthly active users, user growth has slowed or even halted, according to the company’s latest earnings report.

The question remains what’s next for Twitter. For starters, it does in fact need to be clearer about its policies and decisions. An effective issues management campaign might just be what the platform needs to foster more users. Getting in front of this issue is paramount to alleviate any concerns about the platform’s so-called hypocrisy.

Messaging is starting to take shape. Twitter’s founder Jack Dorsey recently pledged to “take a more aggressive stance in our rules and how we enforce them” to safeguard users, particularly women, and in response to a #WomenBoycottTwitter campaign.

And finally, proving Twitter’s relevance in the social narrative to ensure that everyone’s voice is heard, not just high-profile individuals and organizations, may be easier said than done.

— George Medici, gmedici@pondel.com

The Public Relations (and Future) of Healthcare

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U.S. Senate Debates Future of Healthcare Reform

U.S. Senate Debates Future of Healthcare Reform

There was a time not so long ago when healthcare was a huge mystery, understood only by doctors and industry insiders. Today, much of that mystery has been unlocked through the Internet and a curious populace, as billions of dollars are being spent marketing drugs and services to physicians and consumers alike.

The conversation (and controversy) surrounding healthcare in the U.S. continues to evolve at both the industry and legislative levels. With a divided Congress and an influx of emerging technologies, the need for enhanced communication by healthcare companies is greater than ever.

Providers, hospitals, biotech, pharmaceutical and medical device companies, among others, all have distinct reasons and needs for communicating, from securing funding, to FDA reporting and complying with other regulatory processes, to introducing new products or therapies to providers and patients.

Regardless of the reason, communication at the professional level plays a fundamental role in every facet of healthcare. In the last decade, the avenues available for reaching target audiences have multiplied exponentially, ranging from social media to direct communications.

As one example, when the FDA approves a new medication, the message a pharmaceutical company wants to convey to consumers will center around how the new therapy can improve patients’ lives; the message to physicians focuses on the medication’s safety and efficacy, patient indication and reimbursement.

Many factors are at play in a changing healthcare landscape, and uncertainty fosters opportunity. Our industry, whether the focus be investor relations, strategic public relations, product publicity or social media, is likely to see a bevy of communications firms launch new departments devoted to healthcare, according to a recent blog post in PR News.

Communications advisory firms and agencies that will thrive in the new healthcare landscape are those that can help create new narratives for their clients, along with messaging that resonates and facilitates the right exposure for an organization’s products or services among many stakeholders, including existing and potential customers, investors and key opinion leaders.

Change is the constant in the healthcare sector, and smart, effective communication remains paramount.

— Joanna Rice, jrice@pondel.com

Best and Worst

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Some CEOs are great and offer stellar business advice. Some CEOs are not so great and fall victim to errors of judgment.  Today’s blog looks at some of the best and worst (of 2016), courtesy of Forbes (via MSN) and Business Insider.

Best: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett

Worst: While defending a significant price increase for an important medication, a healthcare company’s CEO claimed that the product was fairly priced and blamed high-deductible health plans for the increase. In October 2016, the company “agreed to pay a fine of $465 million to settle accusations that it overcharged the government” for its products.

Best: “The biggest risk is not taking any risk…In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” – Mark Zuckerberg

Worst: After last year’s presidential election, the CEO of a cybersecurity startup threatened on Facebook to kill the president-elect. He resigned from the company in November 2016, and later admitted that what he said “was incredibly dumb, perhaps the dumbest thing I have ever said.  I really only have myself to blame for this.”

Best: “My mother always taught me to never look back in regret but to move on to the next thing. The amount of time people waste dwelling on failures rather than putting the energy into another project always amazes me.” – Richard Branson

Worst: When the CEO of a large U.S. bank only shouldered some of the blame for opening new customer accounts without permission in order to meet quotas, and put much of the blame on “the 5,300 low-level employees who had already been fired,” Senator Warren accused him of “gutless leadership.” Later he admitted full responsibility and stepped down from his position.

Laurie Berman, lberman@pondel.com

Watch What You Read

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Photo credit: Getty

Shopper with Lord & Taylor bag. Photo credit: Getty

Perhaps it was trumped (pun intended) by bigger news, but the Federal Trade Commission recently announced its first-ever enforcement action involving a subject near and dear to the hearts of professionals in the investor and public relations business—the unfortunate, increasingly blurred lines between real and paid-for news.

The FTC action received almost no media coverage, which was too bad. The case involved retailer Lord & Taylor, which ultimately settled, over what appeared to be a legit story about the company’s clothes, published on the fashion website Nylon. But it was really an ad.

With print publications, such trickery is rarely an issue. We all have seen that smallish line saying, “Paid Advertisement.”  Online, however, that’s not often the case.

While there is nothing wrong with online advertising, readers should be made aware that the content is sponsored.

In a press release, Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said, “Lord & Taylor needs to be straight with consumers in its online marketing campaigns. Consumers have the right to know when they’re looking at paid advertising.”

So shame on Lord & Taylor, and perhaps even a bigger shame on Nylon. The real message resulting from the enforcement action is: Readers, watch what you read these days, particularly online, because it is becoming more difficult to tell the difference between ads and articles.

— Roger Pondel, rpondel@pondel.com