Investor Relations & Financial Communications

CTC Inc.

Case Studies


A new restaurant company wanted to go head-to-head with the segment leader.  To gain volume, it completed an IPO and continued to raise capital efficiently to fund new locations. As the company’s outsourced IR department, CTC sought an IPO underwriter, counseled management on best practices, and worked to both educate and inform the investment community through a targeted IR program. Going public at $6, it had coverage from seven sell-side analysts within six months.  The analyst following and strong subsequent performance attracted several institutional investors. Within three years, the stock price hit $16.50 and it was closing in on its competitor.    


 

Air freight is among the world's most economically sensitive industries. But our client constructed a solid, transparent growth platform by blending strong cash generation via long-term aircraft leasing with the upside benefits of operating and servicing those aircraft on a turn-key basis for global clients. Our role in framing, simplifying and spreading the news about this distinctive approach, compared with risk and unpredictability of more volume-sensitive air cargo carriers, has attracted a substantial investor following, including sharply expanded sell-side coverage.


A private space exploration venture imploded after the Challenger tragedy, dropping from the mid-20s to under a dollar.  Management sold assets and acquired petroleum services companies.  The new businesses were successful, but the stock price languished. Investors became so frustrated that metal detectors were used at the annual meeting. Through a perception study, CTC discovered that most shareholders were still interested in the aerospace industry.  We recast the image of the company, in part by correcting its industry classification.  Through media, road shows, industry conferences, and reports from three petroleum industry analysts, we built a well-informed shareholder base. The stock price rose to $13.88 in a year, and daily volume grew from 2,000 to 100,000 shares as petroleum industry investors jumped in.  


A leading Midwest property-casualty insurer had launched an aggressive, metric-driven IR effort, only to see the transparency benefits eclipsed by the penalties of missing several of its performance marks.  CTC was retained to help chart a new course back toward more traditional guidance measures, and more strategic messaging. After checking with key analysts and major shareholders, CTC recommended new disclosure practices and formats that together with better performance, earned back investors' trust. Then we sharpened the strategy message to emphasize  commitment to consistent value creation over cyclical growth. The company was acquired three years later at a price four times greater than when we were retained.