EDN Staff - October 1, 2000
Although experts say it's unlikely that an overseas analyst with a full portfolio of companies to cover would pick up coverage of a U.S.-based company, companies with a current or planned global presence are advised not to ignore them, either. When an international telecom or tech company goes on a European publicity tour, "We make a point that they include the analysts who cover the European companies [in their markets]" on their guest lists for presentations, say Kuhn Partners' Michael Bamforth.
Adds Brian Rafferty, managing director at Taylor Rafferty Associates in New York, "The value of getting to know non-U.S. analysts is recognizing the commercial and industrial intelligence that they can impart, rather than access to institutional capital."
And, companies would be well-served to have enthusiastic analysts in key financial markets. According to the U.S. Treasury, for the 12 months ended March 31, foreigners bought $2.8 trillion worth of shares in U.S. companies, up 65 percent from the previous 12 months. "Ultimately investors like to phone someone in their own time zone who can speak to them in their own accent to advise them about stocks," comments a European-based IR executive. "It's only natural."
Mary Lowengard is a contributing editor at Institutional Investor. Contact her at email@example.com.