Connect with us

Misc

The Modern Era of Investor Relations

Published

on

The Modern Era of Investor Relations

The Modern Era of Investor Relations

How New Media has Ushered In a Better Experience For Investors

“Modern Era of Investor Relations” infographic presented by: Dajin Resources

The internet’s explosion in popularity is attributed mainly to the invention of the first graphical web browser in 1993. Since then, the way investors have gotten information on companies and financials has changed dramatically.

Let’s take a look at how modern company websites and social media create a better experience for investors today.

How Investors Get Company News Releases

Then: Companies used to issue press releases to get information to shareholders and potential investors through snail mail and thermal fax paper. Companies would also cold call potential investors to let them know the gist of the news.

Now: Information is automatically distributed in real-time when it becomes available. Websites, social media, email blasts, newswires, and third-party websites get the information out seconds within it being public.

How Investors Do Due Diligence

Then: Investors could not seek out information easily. They relied on new tips from their stock broker, or were contacted by companies directly. It was difficult to fact check information, and investors relied heavily on newsletter writers to supply due diligence and tips.

Now: Today, information is so abundant through the internet that verifying its validity is the most important concern for investors. Reputation is key. Investors can get and fact check information from company websites, government securities websites, social media, blogs, analysts, chats, email blasts, phone calls, professional investor services, newsletter writers, and local conferences.

How Investors Check Stock Prices

Then: Investors could check the price in a newspaper or find it scrolling on a stock ticker on TV. For smallcap stocks, they relied on their brokers. In the early internet days, delayed stock quotes could be found.

Now: Investors can get stock quotes in real-time for free or for cheap. These provide the full depth, showing bids and asks in the primary market to give an accurate picture of the stock’s activity.

How Important is it to Provide Investors With What They Need?

Today there are more tools in each company’s communications toolkit than ever before. A Thomson Reuters Extel whitepaper in 2012 found that the Top 10 European companies with Best Shareholder Communications outperformed the market by 28.8% since 2007.

Keys to Modern Media

Here’s how companies can take steps to help ensure the best experience for investors.

Modern website

Today’s company websites are a step above the websites of even 5-10 years ago. Not every company has adopted these new possibilities – but for those that have, the investor experience is much better.

Anatomy of a modern website:

  • Dynamic homepage: Populated by up-to-date content that is always changing
  • Different perspectives: Company news is accompanied by different perspectives on the sector and industry
  • Up-to-date media: Presentations, maps, fact sheets, photos, infographics, and other rich media are current
  • Easy to read and navigate: The website is simple and intuitive, which allows investors to find what they need.

Other considerations to make a website top-notch include: having accessible stock quote on the company, easy email newsletter signup option, objective feel that is not too self-promotional, and real photos of company instead of stock images.

Website quality and accuracy is paramount, as a recent investor survey by SNL IR Services found that 60% of investors visit company websites either daily or weekly. This is why the teams behind modern websites monitor analytics very closely, such as bounce rates, open rates, the reach of posts, and keywords. It’s important to make the website as useful as possible, otherwise it can be detrimental to the company’s success.

Social Media

Social media has come a long way in the last five years. Today, almost 80% of institutional investors use social media as a regular part of their workflow.

Good social media content allows investors to:

  • Get breaking news on stocks they follow
  • Gain perspectives on different topics
  • Interact with other investors or industry people
  • Become thought leaders on topics

To help investors accomplish these goals, its important for companies to curate their content to cover other topics and perspectives outside of their company and sector.

Third-Party Media

Media websites provide a means for coverage and eyeballs for all stocks, regardless of size.

Strong media from reputable networks can increase awareness of a stock and liquidity. However, like social media, such coverage can be a double-edged sword. If companies are represented unprofessionally by third-party media, it can backfire.

Therefore, it is important companies do their best to ensure that coverage of their stock is reputable, professional, fair, and accurate.

Continue Reading
Comments

Misc

Watching the Sky Fall: Visualizing a Century of Meteorites

This data visualization depicts every meteorite that was observed hitting the Earth over a 100-year period, between 1913-2012.

Published

on

Watching the Sky Fall: Visualizing a Century of Meteorites

Astrophysicist Neil DeGrasse Tyson once said “The chances that your tombstone will read ‘Killed by an Asteroid’ are about the same as they’d be for ‘Killed in Airplane Crash’.”

Part of the reason for this is the Earth’s atmospheric ability to burn up inbound space rocks before they reach the surface, a process that ensures that most meteors never become meteorites.

Of the 33,162 meteorites found in the past 100 years, only 625 were seen. Today’s visualization from data designer Tiffany Farrant-Gonzalez groups these 625 observed meteorites by the year they fell, classification, mass, and landing location on Earth.

Asteroid, Meteoroids, Meteors, and Meteorites

Not all flying space rocks are the same. Their origins and trajectories define its type.

Asteroid: A large rocky body in space, in orbit around the Sun.
Meteoroid: Much smaller rocks or particles in orbit around the Sun.
Meteor: If a meteoroid enters the Earth’s atmosphere and vaporizes, it becomes a meteor, or a shooting star.
Meteorite: If a small asteroid or large meteoroid survives its fiery passage through the Earth’s atmosphere and lands on Earth’s surface.
Bolide: A very bright meteor that often explodes in the atmosphere, also known as a fireball.

Classification

This graphic classifies meteorites into four types based on their composition: stony, stony-iron, iron and other.

StonyStony-IronIronOther
Achondites
Chrondites
Unclassifed
Mesoiderites
Pallasites
Magmatic
Non-magmatic or Primitive
Doubtful Meteorites
Pseudometeorite

Top 5 Meteorites by Size

While half of all observed meteorites weighed less than 2.5 kg (5.5 lbs), there are a few exceptional ones that stand out. The graphic highlights the five largest meteorites ever observed, and when they fell:

LocatonSizeYearType
Sikhote-Alin, Russia23 MT1947Iron
Jilin, China4 MT1976Stony
Allende, Mexico2 MT1969Stony
Norton County, USA1.1 MT1948Stony
Kunya-Urgench, Turkmenistan1.1 MT1998Stony

Each category differs in their amount of iron-nickel metal and what they reveal about the early solar system.

Fireballs in the Sky: Bolides

Small asteroids frequently enter and disintegrate in Earth’s atmosphere randomly around the globe, creating fireballs known as bolides. NASA’s Near-Earth Object Program mapped data gathered by U.S. government sensors from 1994 to 2013.

Source: NASA

The data indicates that small asteroids impacted Earth’s atmosphere, resulting in a bolide (or fireball), on 556 separate occasions over a 20-year period. Almost all asteroids of this size disintegrate in the atmosphere and are harmless.

A notable exception was the Chelyabinsk event in 2013, which was the largest known natural object to have entered Earth’s atmosphere since the 1908 Tunguska event. A house-sized asteroid entered the atmosphere over Chelyabinsk at over 11 miles per second, and blew apart 14 miles above the ground.

The explosion released an energy equivalent to ~440,000 tons of TNT, generating a shock wave that shattered windows over 200 square miles—damaging several buildings and injuring over 1,600 people.

Look Out Above

While the night sky appears to be a beautiful tableau of the cosmos, these two visualizations paint a dramatic galactic battle. Rocks inundate our planet as it moves through the darkness of space. The resiliency of Earth’s atmosphere to erode these invaders has allowed life to flourish⁠—until the next big one comes through.

Remember the Dinosaurs?

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Maps

Mapped: Top Countries by Tourist Spending

How much do your vacations contribute to your destination of choice? This visualization shows the countries that receive the most tourist spending.

Published

on

Mapped: Top Countries by Tourist Spending

Many people spend their days looking forward to their next getaway. But do you know exactly how much these vacation plans contribute economically to your chosen destination?

Today’s visualization from HowMuch.net highlights the countries in which tourists spend the most money. Locations have been resized based on spending amounts, which come from the latest data from the World Tourism Organization (UNWTO).

Oh, The Places Tourists Will Go

Across the different regions, Europe’s combined tourist spending dominates at $570 billion. Easy access to closely-located countries, both via rail networks and a shared currency, may be a reason why almost 710 million visitors toured the region in 2018.

Asia-Pacific, which includes Australia and numerous smaller islands, saw the greatest growth in tourism expenditures. Total spending reached $435 billion in 2018—a 7% year-over-year increase, from 348 million visitors. Not surprisingly, some areas such as Macao (SAR) tend to rely heavily on tourists as a primary economic driver.

Here’s how other continental regions fared, in terms of tourist spending and visitors:

  • Americas
    Total expenditures: $333 billion
    Total visitors: 216 million
    Expenses per visitor: $1,542
  • Middle East
    Total expenditures: $73 billion
    Total visitors: 60 million
    Expenses per visitor: $1,216
  • Africa
    Total expenditures: $38 billion
    Total visitors: 67 million
    Expenses per visitor: $567

Of course, these numbers only paint a rudimentary picture of global tourism, as they vary greatly even within these regions. Let’s look closer at the individual country data for 2018, compared to previous years.

The Top Tourist Hotspots, By Country

It seems that many tourists are gravitating towards the same destinations, as evidenced by both the number of arrivals and overall expenditures for 2017 and 2018 alike.

Country2018 Spending2018 Arrivals Country2017 Spending2017 Arrivals
1. U.S. 🇺🇸$214.5B79.6M1. U.S. 🇺🇸$210.7B74.8M
2. Spain 🇪🇸$73.8B82.8M2. Spain 🇪🇸$68B81.8M
2. France 🇫🇷$67.4B89.4M3. France 🇫🇷$60.7B86.9M
4. Thailand 🇹🇭$63B38.3M4. Thailand 🇹🇭$57.5B35.4M
5. UK 🇬🇧$51.9B36.3M5. UK 🇬🇧51.2B37.7M
6. Italy 🇮🇹$49.3B62.1M6. Italy 🇮🇹$44.2B58.3M
7. Australia 🇦🇺$45B9.2M7. Australia 🇦🇺$41.7B8.8M
8. Germany 🇩🇪$43B38.9M8. Germany 🇩🇪$39.8B37.5M
9. Japan 🇯🇵$41.1B31.2M9. Macao (SAR) 🇲🇴$35.6B17M
10. China 🇨🇳$40.4B62.9M10. Japan 🇯🇵$34.1B28.6M

Source: World Tourism Organization (UNWTO).
Note that data is for international tourism only and does not include domestic tourism.

The top contenders have remained fairly consistent, as each country brings something unique to the table—from natural wonders to historic and man-made structures.

Where Highest-Spending Tourists Come From

The nationality of tourists also seems to be a factor in these total expenditures. Chinese tourists spent $277 billion internationally in 2018, likely thanks to the increasing consumption of an emerging, affluent middle class.

Interestingly, this amount is almost twice the combined $144 billion that American tourists spent overseas in the same year.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Gen III Company Spotlight

Subscribe

Join the 130,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular