Romanian Investor Relations Association (ARIR) organized the first event Business over Breakfast, part of the Association’s strategy to improve the communication between analysts and the representatives of listed companies.
BT Capital Partners analysts, Irina Răilean and Daniela Chilari, have discussed with ARIR members topics of interest for our community, as:
• analysts’ expectations regarding the communication of the operational indicators realized by the listed companies few weeks before the publication of the financial results and regarding the dialogue with the company after the publication of the financial results
• the stages of the analysis process, the collaboration with the listed companies to substantiate the analysis model, the need for dialogue with the management and communication subsequent to the publication of the initiation of coverage report of the company, the importance of permanently keeping in touch with the analysts
• the overcrowding of the financial calendar and the solutions to avoid overlapping the reporting dates by the listed companies
• encouraging the companies to send via e-mail the relevant information to analysts and investors
• examples of best practices and how the analyst – listed companies relation can be further developed, via e-mail, telephone, meetings
ARIR’s members present at the event were: ALRO, Antibiotice, Electrica, Electromagnetica, Innova Project Consulting and Daniela Șerban.
Irina Răilean, Head of Research BT Capital Partners:
”We are glad to see that such an event was initiated and we consider that it addresses the analyst needs, giving him/her the opportunity to convey the key points that improve the market perception towards the listed companies, mainly regarding receptivity and promptness, openness towards dialogue. The openness of the Investor Relations professionals and their willingness to support the analyst in understanding the business model of the company leads to an accuracy of the estimates and implicitly to an accuracy of the information received by investors. We would like the financial reports to be structured, easy to access, in an editable format and to have constant communication by receiving the materials via e-mail and also by the availability of the recordings of the conference calls on the websites of the companies.”
ARIR’s members have benefited from the opportunity to find out directly from the analysts what it means for them a good analyst-company communication, being also approached aspects as the importance of receiving prompt feedback from the company in situations where there are specific questions, but also the availability of the analyst to wait a while to receive the answers in case of more complex requests, for example when the analyst is in the process of elaborating or updating the analysis report that involves more information, being mentioned that in these cases the accuracy of the information prevails over promptness.
The need to support the analyst by facilitating the access to the company’s management team through meetings or attending conferences was also discussed. Another aspect considered was the publication dates of the financial results, due to the overcrowding of the 14 and 15 dates in the reporting months, many companies publishing in the same day and a proposed alternative solution, besides publishing on different days, was also publishing at different times of the day.