Closing the Visibility Gap for Small Caps
Sell-side coverage is nothing unusual for large-cap enterprises. However, it also holds true that many small to mid-sized companies are still facing challenges due to a lack of analyst research. Despite their performance, small caps struggle to attract the same level of investors’ attention enjoyed by their larger peers and remain relatively underrepresented in the market. Assuming that investors can only hold stocks that they are familiar with, stocks with lower investor recognition tend to be held by a smaller number of investors. Consequently, the relatively lower demand might lead to comparatively lower prices and a higher cost of capital.
To address this challenge, we advocate for small and micro-cap companies to strategically invest in company-sponsored analyst research. This serves as an efficient and direct method to disseminate key company highlights, enhance market awareness, and attract potential investors.
How Do Research Reports Help?
Previous cases underscore the pivotal role of earnings estimates and market consensus in influencing a company’s market visibility. It is indisputable that research coverage forms a fundamental foundation for discoverability. Compiled and composed based on public information about the company by independent third-party research institutions acknowledged by the industry, research reports distinguish themselves from traditional PR campaigns through impartial surveys and analyses, offering a traceable source of data. These reports maintain a consistent focus on compliance and utilize professional language that is widely recognized and respected within the investor community.
Enhancing Investor Recognition through ICA-DZT Research Partnership
Drawing on our extensive industry experiences, ICA has forged a strategic partnership with DZT Research, dedicated to supporting undiscovered and under-covered enterprises brimming with growth potential. Our commitment lies in amplifying their exposure, bolstering market credit, and elevating investor recognition.
Initially, we compile the client’s investment information to facilitate in-depth analysis by a team of analysts. Subsequently, a meeting between the research team and corporate executives would be arranged. In this collaborative session, the company will convey their investment highlights, including the interpretation of key financial metrics and projections, and answer questions from the research team. Direct communication with the company helps analysts in gaining a comprehensive understanding of the business. Following this, a detailed research report is meticulously composed, published, and distributed via financial terminals for broader accessibility.
