Tag Archive: Investor Relations


“After taking your PR classes for the past three years, I feel confident to go out into the world of PR communications professionals. I will miss your enthusiasm in the classroom every day, and writing your two-page executive memos! I can’t thank you enough.” – Graduating Central Washington University Public Relations Student

“I have learned more from your classes than all the other classes I’ve taken combined, and that’s not just including lessons having to do with school. You taught me to take pride in my work, and to put in the effort to do my best. I honestly do not know if I would be where I am today, or have the future that I see myself having if it weren’t for you.” – Another Graduating Central Washington University Public Relations Student

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Trust me when I say not all student reviews are so positive.

When they are, you treasure each and every one.

Most of all you don’t take them for granted because there is always another opinion.

What we call the “Rule of One.” There is always at least one student, who quite frankly hates your guts and even loathes the very ground you walk on. Sigh.

And then there is the student, who can quote back what you said.

In this world of texting, Snapchatting, mobile devices and old-fashioned laptops, breaking through and instilling even ein bisschen wisdom seems almost miraculous.

A professor can prepare. She or he can spend hours researching. And devote even more time to tinkering with PowerPoints and video. Finally, the time comes to deliver the lecture, coax questions and then ask two key rhetorical questions:

  1. Was anyone listening?
  2. Does anyone care what you have to say?

One of my students provided me with a thank you card with valuable “Kevin Quotes” including a smiley face.graduation2016

Here they are with an Almost DailyBrett commentary under each one. They are offered in the exact order chosen by the student writer:

  • “Buy on rumor; sell on news” Almost DailyBrett: This ubiquitous expression in the late 1990s directly led to the Securities Exchange Commission (SEC) promulgating Reg. FD (Fair Disclosure). Corporate chieftains could no longer “whisper” meaningful tidbits to favored financial analysts (e.g., Goldman Sachs, JP Morgan, Fidelity, Morgan Stanley) allowing their clients to buy on the whispered rumor and then sell on the actual news.
  • “Your Brand Is In Play 24/7/365” Almost DailyBrett: Donald Trump in particular should pay close attention to this axiom. With instantaneous global communication through a few key strokes, digital communication can advance a personal or corporate with lightning speed, and destroy it just as quick.
  • “Digital Is Eternal” Almost DailyBrett: The complement to your brand being in play 24/7/365 is that all digital communications are permanent, enduring and can be resurrected by hiring managers, plaintiff attorneys and others who can hurt your reputation and/or career.justinesacco
  • “The Long and Short Program” Almost DailyBrett: The Olympics figure skating competition metaphor pertains to 10-K annual report letters and 10-Q quarterly earnings reports respectively. The former has more flexibility, while the latter must give precedence to GAAP (Generally Accepted Accounting Principles) and include revenues, gross margin percentage, net income, EPS, cash-on-hand and dividends (if applicable).
  • “Don’t Be a Google Glasshole” Almost DailyBrett: Guess, I really did say that …
  • “Buy Low; Sell High” Almost DailyBrett. Every one of our corporate communications/investor relations classes began with this chant. One must understand profit margins.
  • “Do Not Buy Stock in Enron” Almost DailyBrett: Don’t buy a stock just because it is going up. You need to understand a company’s raison d’ etat before you commit funds. There is a real difference between investing and gambling. Those who gambled on Enron lost everything.
  • “How Does a Company Make Money?” Almost DailyBrett: Bethany McLean of Fortune asked this basic question to Jeffrey Skilling, now imprisoned former Enron president. The Harvard-trained chief executive needed an accountant to answer this most basic of questions. McLean smelled a rat.
  • “Stocks Are Forward-Looking Indicators” Almost DailyBrett: As Wall Street wild man Jim Cramer of CNBC Mad Money fame always states” “I don’t care about a stock’s past, only its future.”edwards1
  • “Tell the Truth, Tell It All, Tell It Fast. Move On” Almost DailyBrett: These 11 words are the crux of effective crisis communications. Disclosure is inevitable. You can manage or be managed. Former presidential candidate John Edwards is the poster child for failing to follow this advice.
  • “Corporate America Needs Better PR” Almost DailyBrett: Amen

Appreciate the nice words. Even more: Thanks for listening and learning.

https://www.snapchat.com/

https://www.sec.gov/answers/regfd.htm

https://almostdailybrett.wordpress.com/2015/04/08/the-internet-where-fools-go-to-feel-important/

https://almostdailybrett.wordpress.com/2015/05/25/the-mother-of-all-weak-arguments/

 

 

“Bulls make money, bears make money, pigs get slaughtered.” – CNBC Mad Money host Jim Cramercramerpigs

Which decision requires more mental gymnastics?

When to buy?

When to sell?

The author of Almost DailyBrett humbly opines that when to sell is the tougher call.

Why?

There are two kinds of remorse: ‘Darn it the stock kept going up after I sold’; and the worse one, ‘I could have sold when the stock was up, but I was a pig … and oh fiddlesticks, now I am selling when the stock is down.’

Yep, there are a lot of potential could-of, would-of, should-of when it comes to selling.

So what should you do in the view of this humble retail investor (read: Charles Schwab account)?

Don’t Fall in Love

“…Sometimes the most obvious question really is the question. In Enron’s case: How do you make money? – Bethany McLean, Fortune Magazine

Preparing to teach Corporate Public Relations/Investor Relations to Central Washington University seniors and a few juniors starting this coming Wednesday, yours truly will pose the same simple question that Fortune’s McLean posed to Enron’s Jeffrey Skilling: “How do you (Enron) make money?”

Communicators need to have elevator pitches at their ready when asked this very same straightforward question about their own employer. The same is true for investors: How does a company make money? If the answer is clear; you like the company; you understand the business strategy; you have done your homework including consulting with your financial advisor, then it may be time to purchase shares of the company stock.bullandbear

This particular company’s stock is now part of your diversified portfolio, which in turn represents a portion of your retirement savings, a child’s college education, that dream vacation etc.

All is good, but when does it make sense to sell?

Buy and hold is a sure loser. Why? At some point, stocks will stop growing. Your invested company certainly will change, and not necessarily for the better. Circumstances may shift and a wave of caca may hit a company or an industry.

Remember the Internet bubble two decades ago? It burst.

Remember the housing bubble a decade ago. It burst.

Don’t fall in love with your securities. Follow your instinct and your plan. When it is time to pull the trigger and unload the stock, then sell the shares.

Have a Plan

“I love the company. I hate the stock.” – Jim Cramer on Tesla (NASDAQ: TSLA)

Okay, it’s time to confess: I fell in love with the Elon Musk Ion-Lithium Battery/Electric Car story at Tesla. Yes, I bought the stock and road it up and down (pardon the pun) and eventually got tired of the downward roller coaster.muskcar

Before I weighed selling, I considered at what average price point did I buy the stock and how low would it have to go before I would sell the stock? It hit that point, and it was time to sell.

Maybe at some future time, it will be low enough to once again purchase the stock, but only when one is convinced the company has a realistic plan for long-term profitability.

The same is true when selling a stock that is going up. Social media stock LinkedIn (NYSE: LNKD) recorded a blow-out quarter and the stock exceeded my prearranged sell price point. As Joseph Kennedy reportedly said: “Never apologize when taking a profit.”

And we should never worry about paying taxes on our profits; profits are taxable.

The point here is to follow your game plan and sell when it’s time. That’s a good thing, really.

What are some other signs that it is time to sell a stock?

  • The Music Stopped: Once upon a time, Intel (e.g., microprocessors), Microsoft (e.g., software operating systems) and Cisco (e.g., Internet routers and switches) were literally rocking and rolling. We couldn’t get enough of these stocks until … the music stopped. The PC is yesterday’s news. The 1990s came and went. It became time to sell and move on.
  • Commoditization: Just like Intel’s microprocessors became a commodity to serve as the brains of social, mobile and cloud, the same is true for all other semiconductors and those that build semiconductor manufacturing equipment and electronic design automation (EDA) software. Intel’s rumored takeover of Altera, similar to Avago’s absorption of LSI Corporation, are more signs of industry consolidation. If you have not sold already, it’s past time.
  • High Volatility: Sometimes an investor can benefit from a highly volatile stock. A perfect example is Salesforce.com (NYSE: CRM). Lost track of how many times, yours truly has bought, sold, bought, sold, bought … this stock. As long as the trend line is consistently up, it’s okay to let go of the shares now and then, only to become reacquainted at a later date.
  • New Management: Tim Cook is proving that there is life at Apple following the ultimate demise of Steve Jobs, but that is the exception not the rule. Companies change. Business plans shift. Circumstances change. Markets explode or implode. Almost DailyBrett has always followed the mantra that if the old boss or new boss is a bosshole, it’s time to pass on the stock or sell the stock. Translated: Stay away from Larry Ellison and Oracle (NASDAQ: ORCL)
  • No Balance Between Fiduciary and Corporate Social Responsibility: The best run publicly traded companies do NOT see “doing well” and “doing good” as being mutually exclusive. Publicly traded companies with their brands under a digital 21st. Century microscope must appreciate their respective brands are trading in the cloud 24/7/365. Worshipping exclusively at the altar of fiduciary responsibility will no longer cut it. If so, it’s time to sell.
  • Caca Happens: Planes land at the wrong airports (e.g., Southwest). Companies name shoes (e.g., Umbro) after the cyanide gas used in Nazi concentration camps. The CEO falls dead in the backseat of a car (e.g., Texas Instruments). Oil wells explode and gush on global video for three months (e.g., BP). Guano hits the fan. This is precisely the reason not to fall in love with any stock.

Sometimes, it is time to say goodbye.

Breaking up is hard to do.

http://www.thestreet.com/story/10292084/1/bulls-bears-make-money-pigs-get-slaughtered.html

http://en.wikipedia.org/wiki/Joseph_P._Kennedy,_Sr.

https://almostdailybrett.wordpress.com/2011/07/21/what-happens-when-the-music-stops/

https://almostdailybrett.wordpress.com/2013/10/06/how-does-a-company-make-money-2/

https://almostdailybrett.wordpress.com/2014/07/18/donate-to-united-way-or-invest-in-tesla/

http://finance.yahoo.com/video/cramers-stop-trading-tesla-motors-135400997.html

https://almostdailybrett.wordpress.com/2014/01/02/farewell-lsi-logic/

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/

 

 

 

 

 

 

After nearly three decades in the political, association, corporate and agency trenches of professional public relations, and the last four years intensely studying an increasingly complex industry from academic settings, Almost DailyBrett is ready to take a stab at the 17 essential qualities of the consummate PR practitioner.

Please note the list is not meant to be exhaustive and undoubtedly some vital characteristics will be missing. If that is the case, please let this humble blog know your thoughts. For better or for worse, here are the Top 17 attributes of the super-star public relations professionals in alphabetical order:

1. Attuned to the World 

Even though it is impossible to capture everything that is happening on this quickly changing planet, the best PR professionals are well versed even in cases in which their knowledge is one-mile wide and one-inch deep. They don’t know everything; they are not afraid and their ego will allow them to simply state: “I don’t know.” Having said that, they are good at getting to the bottom of an issue quickly, and then presenting the answer in the best interest of their employer/client. 

atlas2.“Be Quick, But Don’t Hurry”

The famous John Wooden quote definitely applies to super PR practitioners. Sometimes it is best to buy time. You may suspect you have the right answer, but your instinct guides you to seek out more. This is especially true in crisis situations. A great PR pro is quick, but never hasty. She or he instinctively knows that a rushed answer or editing of a vital document may result in a wrong response. The best counsel may be to quietly recite: “One Mississippi, Two Mississippi,” before offering a response. That little extra time can make all the difference in the world. 

3. Communications Choreography 

Similar to a producer or director of a Broadway play, the 21st Century PR star knows how to ensure that all the dancers, actors, actresses are in the right place, the lines are perfectly delivered and the music is on key. In the case of public relations, the research has been completed; the messages are composed; the communications are ready to be delivered, and the follow-up evaluation is set to be undertaken. It is without a doubt: Message-Candidate-Campaign in that order.

4. Confident Presentation Skills 

Glossophobia (e.g., fear of public speaking) is not in the vocabulary of the effective public relations professional. She or he responds with a smile, while deep down inside sneering at reportedly the number one fear of most people, public speaking. The great pro doesn’t seek out the stage, but doesn’t shy away for it either. Once there, the message is confidently delivered and questions are coolly answered.

janis

5. Constructive Listening 

Two of the most effective public relations professionals the author of Almost DailyBrett ever had the privilege to meet, are two of the best when it comes to constructive listening: Janis MacKenzie of MacKenzie Communications in San Francisco, and Bruce Entin of Silicon Valley Communication Partners. For both of them, the issues and concerns of you the client or you the subordinate are the only topics on their minds, even though in reality there are always many competing demands for their mental bandwidth. The point is they made time for you. They care. They are ready to help.

Entin

6. Cool Under Pressure

Did someone mention the word, “cool?” We are not talking about being smooth. Instead, we are focusing on a skilled communicator that stays composed when others are losing their heads. Is the company stock down five points? Does a product need to be recalled? Is the CEO being terminated? At least the Bay Bridge is not in the water (remember being told, just that). The sun will come up in the morning. The birds will chirp. The bees will buzz. Life will go on. 

7. Doberman, Not A Cocker Spaniel 

A Cocker Spaniel PR practitioner is simply proficient in providing necessary information to the conventional and digital media. A Doberman PR pro is just as knowledgeable, but even more to the point is also an impassioned advocate and will fiercely guard and protect the reputation and brand of the client/employer. If getting into a fight with a reporter/editor/analyst is deemed necessary, then that is what the job requires. The cheap-shot stops here.

8. Expansive Vocabulary 

A winning public relations professional is a well-read/versed professional. This practitioner is skilled in the use of English, the lingua franca of international business. Knowledge of a second or third language is highly desirable in our digitally flattened global village. It is not just a matter of knowing the words and the meanings behind them, but the right words at the right time in the right settings.

9. Fiduciary Responsibility & CSR 

It has become de rigueur for a public relations professional to advocate corporate social responsibility (CSR) or “doing good.” The best PR practitioners balance CSR with fiduciary responsibility or “doing well.” Fiduciary Responsibility and CSR are not mutually exclusive. PR pros, who understand this undeniable truth, have a better chance of being invited to sit at the boardroom table.

10. Great Student/Lifelong Learner 

What is the next killer app? What is the next “destructive technology?” How is social, mobile and cloud driving technology? What is the next driving mantra in global communications (e.g., radical transparency)? How can we best show (e.g., infographics) as well as speak and write? These are all questions that are constantly pondered by the student, lifelong-learner, PR pro.

11. Honest, Ethical, Reliable 

The first two of PRSA’s core values are “responsible advocacy” and “honesty.” Public relations practitioners are not Switzerland. They are not neutral. They are advocates. Some contend that PR pros cannot be persuasive advocates, advancing a well-researched set of arguments, and maintaining the highest standards of integrity at the same time.

Au contraire!

12. Offensive Without Being Offensive 

Being able to passionately debate crucial points and not make it personal with those who differ is a vital skill, not in great supply. Can you be offensive without being offensive? The best PR pros know, the most important public relations are personal public relations, and that includes interactions with work colleagues and teammates.

13. Qualitative and Quantitative

In our increasingly complex digital world, we cannot escape numbers and statistics. As Chris Roush of the University of North Carolina wrote in his Show Me the Money, behind every number is a story. The superb PR pro, particularly those in corporate public relations and investor relations, can build relationships (qualitative skills) with those closely following publicly traded corporations (e.g., investors, analysts, employees, suppliers, distributors). They are just as adept in reading income statements, balance sheets, cash-flow statements and interpreting the psychology of global markets (quantitative skills).

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14. Refined Sense of Humor

One of the legendary public relations professionals in Silicon Valley history (i.e., Apple, Fairchild, Miller/Shandwick Technologies) was also one of the funniest, the late Fred Hoar. As he was fond of telling anybody and everybody, “that’s Fred, spelled F-R-E-D.” Every year, he served as the master of ceremonies for the SIA (Semiconductor Industry Association) Forecast and Award Dinner, and brought down the house each time with his “hick and stick.” Yours truly was charged with determining whether Fred’s humor met the standards for mixed company in a business setting. Guess you win some and lose some. Regardless, Fred was a crack-up and delightful to know.

15. Superior Judgment

The best PR pros instinctively know the difference between being “bright” and being “smart.” They are not the same. The latter is much more valuable than the former. Sometimes rocket scientists are best being left on the launching pad or maybe just at their workstations. Some are good at stakeholder relationships; some are not. That is why smart PR pros, who can provide sage counsel to those of infinite wisdom, are the best and the brightest in our profession.

16. Tech Savvy 

The 21st Century public relations practitioner is digital, not analog. As Thomas Friedman wrote in The World is Flat, the planet has been made measures of magnitude smaller by the ones-and-zeroes of binary code. All brands and reputations are in 24/7/365 play as a result of instantaneous digital publishing. The Genie is not going back into the lantern. Forward-looking PR professionals embrace new technology communications tools, and are always looking to the horizon for the next destructive technology force. During the course of my career, no PR pro was better in studying engineering and technology than Howard High of Intel, now with life sciences company, Fluidigm Corporation.howardhigh

17. Thought Leader 

Not only do the best PR pros advocate thought leadership by clients, who have proved standing on critical issues of public interest, they also use digital (i.e., blogging, social media, infographics) and conventional tools (i.e., presentations, commentaries, contributed articles etc.). They are always learning and as a result, they have wisdom to share and sage counsel to provide … particularly as it applies to instantaneous world of communications.

Editor’s Note: As the former SIA director of Communications, Janis and her firm served as our PR counselor. Fred was everyone’s friend, and the “Valley” is not the same without him. Howard was the chair of the SIA Communications Committee and provided invaluable counsel as the industry was finally able to open the Japan market. Bruce was my first superior during my decade at LSI Logic. He was the best boss in my career, and now is an even better friend. Naturally these are not the only PR super-stars on the planet, but they are fine examples of the species.

http://www.prsa.org/aboutprsa/ethics/codeenglish/#.VI4DuZU5BCo

http://www.mackenziesf.com/about/janis-mackenzie/

http://siliconvalleycom.com/Bruce_Entin.html

http://www.sfgate.com/bayarea/article/Frederick-Hoar-Silicon-Valley-master-of-PR-2831416.php

https://www.linkedin.com/pub/howard-high/12/aa6/b06

It’s not really about asking for the raise but knowing and having faith that the system will actually give you the right raises as you go along. And that I think might be one of the additional superpowers that quite frankly women who don’t ask for raises have. Because that’s good karma, that’ll come back.” – Microsoft CEO Satya Nadella

Was inarticulate re how women should ask for raise. Our industry must close gender pay gap so a raise is not needed because of a bias.” – Nadella follow-up tweet

satya

The new Microsoft chief hit the wrong button on his PowerPoint clicker …

Or will his dentist find foot prints in his mouth?

Women should not ask for pay raises and just rely on “Karma.”

There is no Namaste at Microsoft today.

Sexism is Alive and Well

As Almost DailyBrett has previously commented sexism still lurks, even in women-dominated professions, including public relations.

Working at Edelman Public Relations five years ago, our Silicon Valley office was 134 kind souls, 110 with XX chromosomes. There was no line at the men’s room, simply because representatives of the knuckle-dragging gender were in short supply. Nonetheless, we male folk were well compensated.

Looking around my public relations and integrated marketing communication classrooms at Central Washington University, approximately three-out-of-every-four students is female. A comparable trend exists at the University of Oregon and conceivably other universities teaching public relations and communications around the nation.

And despite the undeniable numerical superiority for women practitioners, there is a pervasive, stubborn and resolute pay gap between men and women in public relations. According to a San Diego State School of Journalism & Media Studies quantitative study of Public Relations Society of America (PRSA) members, published in Public Relations Journal, male public relations practitioners earn on the average $84,368, compared to women at $76,063. That amounts to an $8,305 difference in annual salary between the two genders. At first glance, that figure sounds relatively close.

However, the magnitude of the different pay for equal work comes into play when you multiply the $8,305 delta over the course of a 40-year career, bringing the total to a staggering $332,200 loss of earning power for women practitioners, their children and their families.

Microsoft’s Nadella is undoubtedly one bright dude, but he made comments Thursday that are not smart. Weren’t blacks told to chill out, have faith and wait out inequality? That seems to be the message that Nadella extolled about pay inequity in the workplace. Nadella upon reflection (and probably a kick in his nether region by Microsoft’s PR department) fired off the obligatory apology tweet … but the damage was done.

karma

“Rounding Error”

One of my former students was being offered an entry-level job by a West Coast public relations agency. She was thrilled by the prospect of a $33,000 annual salary and believe it or not: Three weeks of annual vacation (try taking off 15 working days at any major agency).

When it was suggested that she not take the first offer, and to ask for $2,000 more per year (essentially a rounding error for the finance department of a multi-million-dollar agency), she initially balked. Eventually she diplomatically said she needed a $35,000 salary, and the hiring manager didn’t even blink.

Upon reflection, she said (her words, not mine) that women are not good in negotiations and asking for what they want. Almost DailyBrett has no empirical data to confirm or deny that assertion, but she was convinced it was true.

What Must Be Done

Do public relations, marketing, social media and investor relations professors and instructors have a role to play in closing the communications salary pay gap between men and women? The answer is affirmative particularly when it comes to mentoring.

What jobs pay more? Technicians or managers? Let’s face it, technicians will always be paid in the five-figure range, the only variable is what is the first number. Some women may prefer working behind the scenes and being an integral part of a team. That’s fine, but these jobs most likely will never lead to six-figures.

Why not encourage more women students to be leaders of teams and to train for management in public relations, marcom, investor relations or social media? When asked why he robbed banks, Willie Sutton said “that’s where the money is.”

There is also a major difference in pay rates within communications segments: Investor relations, financial communications and corporate public relations pay very well, non-profit and community relations not so much.

The average pay for practitioners in investor relations/financial communications is $117,233 … ka-ching. For corporate public relations, professionals are earning on an average, $88,827 … conceivably with managers, directors and vice presidents making above the median.

Conversely, community relations jobs pay $63,437 and non-profit positions, $62,275. Think of it this way, it is a big leap from the median to the six-figure mark for those working in community relations and/or non-profit.

Should women students be encouraged to seriously consider managerial positions, particularly those in high-paying investor relations, financial communications and corporate public relations disciplines? The answer seems obvious.

Ultimately, the choice will be made by the graduating student as she embarks into the wide-ranging field of public relations, marcom, investor relations and social media. Her decision and those made by literally thousands of her colleagues may play a pivotal role in closing the public relations gender pay gap once and for all.

http://mashable.com/2014/10/09/microsoft-ceo-women-karma-raises/?utm_cid=mash-com-fb-main-link

http://techcrunch.com/2014/10/09/microsoft-ceo-opens-mouth-inserts-foot-on-gender-pay-gap/?ncid=rss

https://almostdailybrett.wordpress.com/2013/10/01/addressing-the-gender-pay-gap-in-public-relations/

 

 

Investing without research is like playing stud poker and never looking at the cards.” – Über-investor and former Fidelity Magellan Fund manager Peter Lynch

peterlynch1

Couldn’t help but note Lynch’s gambling metaphor when it comes to investing in global markets.

There are many who absolutely contend, and will not be convinced otherwise, that investing in Wall Street is nothing more and nothing less than gambling. They even talk about playing the market.

Are the Manhattan-based NYSE and the NASDAQ stock markets, Las Vegas East?

Or is Las Vegas, Wall Street West?

Can’t say the author of Almost DailyBrett is an expert about either gambling (never been to Lost Wages) or investing, but I do know enough about Wall Street to be dangerous.

And based upon this finite knowledge, let me proclaim IMHO: Investing in Wall Street is not gambling, provided that you do your homework, and as Peter Lynch has stated, “Invest in what you know.”

Strategic Business/Financial Communications

The academic paper for my M.A. project at the University of Oregon School of Journalism and Communication provided the backdrop for the creation of an upper division college course: Strategic Business/Financial Communications. I was privileged to teach the course that I created.

Many students thought that Strategic Business was a math class. Ahh … I flunked geometry in high school. Screw the Pythagorean Theorem. Yours (left-brain challenged) truly cannot and will not ever teach a math class. Instead, communications’ students learned a new language – speaking, writing, hearing, reading – the lexicon of Wall Street.

There is a reason why financial communications/investor relations are easily the highest compensated segments of the public relations profession. According to Salary.com, IR directors received in the range of $97,753 to $201,565 annually in 2013. Corporate PR directors received $86,469 to $167,836 in the same year.

This is serious money, not including stock purchase plans and options. And why is that? Both jobs demand qualitative excellence (e.g., developing relationships with analysts, investors, reporters, employees) and quantitative skills (e.g., reading income statements, balance sheets and cash-flow statements).

investorrelations

Which brings us back to the point as to why Wall Street is investing and not gambling. The answer lies with responding to a basic question: How does a company make money?

Microsoft sells software and video game consoles. Boeing produces airplanes. Google is the No. 1 search engine. Apple is Macs, iPods, iPhones and iPads. Nike makes athletic shoes. Amazon is the No. 1 digital retailer etc.

And backing up the answer to these questions is a plethora of facts, figures and information. Looking up a stock on Yahoo Finance, CNBC, Wall Street Journal, Reuters, MarketWatch.com, The Street.com and others is the easy part.

There are also the aforementioned income statements (revenues and net income…there is a major top-line and bottom-line difference), balance sheets (assets and liabilities), CEO letters, annual reports, analyst reports and more. The sheer volume of this data can be overwhelming, but it is all there, free of charge.

Leading or Trailing Indicator?

“ … Don’t care where a stock has been, only where it’s going.” – CNBC Mad Money Jim Cramer.

Cramer is fond of stating that he really does not care about a stock’s past, only its future. That answers the leading vs. trailing indicator question. Stock prices are an indicator of the expected/anticipated/projected/forecasted upward or downward direction of a company’s business prospects.

cramerbuy

How do we know whether a company is doing well or not? Certainly there are oodles of information online, maybe even too much data. There is also your personal experience.

Ever observe the perpetual line out the door at Starbucks as people queue to pay $4.00 for that overpriced grande mocha with no whip.

Ever notice that Southwest Airlines only offers peanuts and a soda; you can choose your own seat; the airline only flies Boeing 737s; and the flight attendants are actually Pharrell Williams Happy?

Ever note the high prices, superior quality, commitment to service and high-traffic stores at Nordstrom?

And did you ever wonder about all the hoopla about “The Cloud” or the access of Big Data contained in mega servers and offered in manageable chunks by a company such as Salesforce.com?

When one mentions “Hog,” your mind may conjure a barnyard or you may think about high-performance, big muscle motorcycles. Want to invest in one of the country’s great comeback stories? Just enter NYSE: HOG or Harley Davidson into the search engine.

“The House Always Wins”

When one is mathematically challenged, it is best to stay away from Texas hold-em or the black-jack table. Can’t tell you how many times I have heard the phrase: “The House always wins.”

wallstreetgambling

That’s not to say that there are not legitimate complaints about Wall Street, particularly as it applies to executive compensation for underperforming CEOs. And there are those who contend the market is rigged against the little guy, the retail investor.

There is no doubt that cash is king. And the buy-side (e.g., PERS, Fidelity, Putnam) and the sell-side (e.g., Goldman Sachs, Morgan Stanley, J.P. Morgan) own the lion’s share of company shares. The respective analysts for these investment houses naturally draw the most attention from publicly traded company execs.

Having said all of the above, there are still opportunities for the retail (e.g. Charles Schwab, eTrade, TD Waterhouse) investors. The time-tested tenets of diversification, doing your homework, know who you are buying and why, still apply.

Sure beats investing in a 0.02 percent passbook account, plunging hundreds of thousands into real estate that could go underwater, stuffing dollars under the mattress or even playing the Roulette wheel in Vegas.

http://en.wikipedia.org/wiki/Peter_Lynch

http://25iq.com/2013/07/28/a-dozen-things-ive-learned-about-investing-from-peter-lynch/

http://www.cnbc.com/id/15838187

http://www.thedigeratilife.com/blog/jim-cramer-stock-picks-money-tips/

http://www.salary.com/

 

 

 

The shattered pieces of the glass ceiling may lie on the floor, but no one is partying.

In case you haven’t noticed it, women dominate the profession of public relations.

When I was a senior vice president at A&R Edelman in San Mateo, CA, there were 134 on our staff, 110 were women.

There was no line for the men’s room; physiology had nothing to do with it.

Teaching and lecturing upper-division public relations courses at the University of Oregon School of Journalism and Communication, more than once I entered a classroom and there was not a male face to be found.

Who invited me?

The ratio of women-to-men students majoring in Public Relations at UO is north of 7-to-3. Similar women-to-men out of balance ratios can be found at other university PR departments.

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Women may be dominating in numbers, but compensation is sadly a very different story.

San Diego State School of Journalism & Media Studies Professors David M. Dozier, Bey-Ling Sha and Hongmei Shen reported the pay differentials between men and women in public relations in their Why Women Earn Less Than Men: The Cost of Gender Discrimination in U.S. Public Relations.

The quantitative study of Public Relations Society of America (PRSA) members, published in Public Relations Journal, revealed that male public relations practitioners earn on the average $84,368, compared to women at $76,063. That amounts to an $8,305 difference in annual salary between the two genders. At first glance, that figure sounds relatively close.

However, the magnitude of the different pay for equal work comes into play when you multiply the $8,305 over the course of a 40-year career, bringing the total to a staggering $332,200 loss of earning power for women practitioners, their children and their families.

That’s serious money.

You could outright buy a very comfortable house in Eugene, Oregon with that amount or maybe make a down payment for a home in Silicon Valley. More than $300,000 is the difference between a comfortable retirement, and being forced to flip hamburgers in your Golden Years.

Dozier, Sha and Shen offered several potential explanations for this inequity including differences in experience, career-interruptions (e.g., babies and family) and simply because of gender.

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One area that was studied by these San Diego State profs that still needs more attention are choices of specific jobs made by the two genders. The academics noted that corporate PR shops ($88,823 average salary) had more men, while non-profits ($62,275 average salary) were composed of more women. There is a major difference in pay and yet more women gravitate to non-profits than men. America is a free country, but are non-profits the right choice?

Community relations pays on the average $63,437 annually. In contrast, financial relations provides the highest rate of compensation in the industry, an average of $117,233 per year. Are enough women focusing on investor relations and corporate public relations? IMHO, they should. Not only do these categories pay extremely well, they also require one to be talented both qualitatively (e.g., developing relationships with buy-and-sell-side analysts) and quantitatively (e.g., reading income statements and balance sheets).

There is also the question of the technician vs. manager divide as the former will most likely always be compensated in five figures, while the latter potentially leads to the six-figure salaries. Every profession needs worker bees, but there is no justification for one gender making up the majority of subordinates.

What can college and university instructors do to help rectify this inequity? The word “mentoring” comes immediately to mind. What if…

● We encourage women public relations majors to take Strategic Business/Financial Communications and other business communications classes to have a better understanding of businesses. Every organization – for profit or non-profit – operates on the basis of an income statement and a balance sheet. Remember GAAP (Generally Accepted Accounting Principles) is your friend.

● In group settings, more times than not, it is the male of the species that is clamoring to be the group leader. Why don’t we quietly encourage more women students to lead these groups? If this experience is positive, it could spur more women to pursue the road-to-six-figure managerial jobs. Yes, industry always needs its technicians, but skilled managers as well.

● Another huge positive that comes from group leadership is the management of people. Keep in mind, not everyone is cut out to supervise and encourage employees. Having said that, organization management is a skill that will always be in demand, and it cannot be effectively outsourced.

● We present the full gambit of positions that are available in public relations, not just community relations, internal communications and non-profit communications, but corporate public relations, investor relations, reputation/brand management and crisis communications.

Guess which ones pay the most?

● The same also applies to chosen end market. There is more to life than just non-profits and PR agencies (I served in both), but also corporate and government (I toiled here and there as well). Where is the compensation the greatest? The answer usually revolves around where the supply is the smallest; the demand and challenges are the greatest.

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Almost DailyBrett wishes for a magic wand to wave away the last vestiges of ugly and flat-out wrong sexism and racism from global societies.

Absent supernatural powers, we can instead take positive mentoring steps to help close and eliminate the pay inequity between men and women in public relations. Today is a great day to start.

http://www.prsa.org/Intelligence/PRJournal/Documents/2013DozierShaShen.pdf

http://womeninbusiness.about.com/od/sexual-discrimination/a/Corporations-Sued-For-Gender-Discrimination-Against-Women-And-Men.htm

https://almostdailybrett.wordpress.com/2011/05/01/pr%E2%80%99s-endangered-species/

https://almostdailybrett.wordpress.com/2013/07/31/where-are-the-guys/

 

 

 

When it comes to the most influential target audiences for publicly traded companies, they can be essentially boiled down to the acronym “CEO”: Customers, Employees and Owners.

Company executives have long championed “serving customers” and “creating shareholder value” and they should continue as these two groups drive revenues and enhance market capitalization. Unfortunately the same level of enthusiasm is rarely afforded to a company’s number one asset, its employees.

One obvious reason is that the care and feeding of employees represents the lion’s share of the expense side of the ledger. These costs are not just salaries, but a growing array of benefits, incentives and government mandates (e.g. parental leave).

Despite this overall lack of attention on “E,” the nation is nonetheless transfixed on the stubborn 9.7 percent unemployment number, particularly that “only” 36,000 lost their jobs in February. The U.S Department of Labor’s Bureau of Labor Statistics reported a total of 14.9 million unemployed; 8.8 million forced to work part-time out of economy necessity and 1.2 million discouraged workers, who don’t believe a job exists for them http://www.bls.gov/news.release/empsit.nr0.htm Add it all up and we are talking about 25 million unhappy people in a nation of 300 million.

We should also keep in mind that DOL also reported that 138 million Americans are working. Many of these workers are saddled with lousy bosses or have limited upward mobility and feel trapped in their jobs because of the nearly double-digit unemployment and the lack of alternatives. This scenario seems to be gradually changing, which means that the “E” for employees could soon be receiving comparable executive attention, if not love, as the “C” for customers and the “O” for shareholders.

Failing to attract or losing the best and the brightest is extremely costly to companies. I have seen figures up to $60,000 to replace each management or high-talent employee, when search, training and lost productivity is included in the equation. For example, technology companies are particularly vulnerable to the potential loss of software and/or hardware engineers. Financial services firms rely on investment bankers, fiscal analysts, accountants and controllers with MBAs to demonstrate gravitas to clients.

So what should companies do in this shifting economic environment to provide for the proper care and feeding of their valuable employees?

● Don’t wait for “retention” to become a major problem; make it a priority right now. The recession is over and the choppy recovery has begun. This is the time to challenge your employees, add to their responsibilities, listen to their concerns, provide them with growth paths and let them know they are key players in the success of the company. Before going out and recruiting away employees from competitors, companies should be concerned about protecting their “base” employees from rival cherry pickers.

● Engage and over-communicate with employees, including using low-grade technology in the form of CEO all-hands meetings with PowerPoint graphics. The purpose is to not only share business strategies with employees, but to listen and hear their concerns as well. Use corporate intranets to publish stories, announcements and blogs about the company’s direction and accomplishments. Ditto for social media, encouraging employees to read about the company and its brand-building activities via Twitter, LinkedIn.com, Facebook and others.

● View Investor Relations, Corporate Public Relations and Employee Communications as being linked. A high percentage of employees in publicly traded companies, particularly technology and biotech, participate in ESPP (Employee Stock Purchase Plans) and stock option programs. They are very interested and savvy investors in the company’s stock and that contributes to market cap. Corporate positioning should be outward to investors, customers, suppliers, partners, analysts and media, and also inward to investing and contributing employees.

● Consider having Investor Relations, Corporate Public Relations and Employee Communications report to the Chief Financial Officer. In many cases Employee Communications reports to Human Resources, which used to make some sense, but becomes less so with even greater SEC scrutiny on fair-disclosure issues. Naturally, Employee Communications should interact regularly with HR, particularly on benefits, but the CFO holds more sway on investor issues, corporate development, strategic acquisitions/integration and the reasons behind restructurings and layoffs.

● Sweat the details when it comes to the “management style” of middle managers. Do they micromanage? Are they arrogant, unreceptive and simply fail to listen and hear legitimate concerns? Do they have their own agendas? Should they be managing people in the first place? Let’s face it; bad bosses will eventually erode morale and prompt more good people to run for the exits, particularly in an expanding economy creating new opportunities.

As both a physical and economic spring returns to the landscape, it is time to make the care and feeding of employees a major priority. Cherry picking is a growth industry. The best defense is a good offense. It’s time to make employee communications a priority.

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