Article on information and the individual investor vs. large stock holders (institutions):
SACRAMENTO, Calif.-- March 11, 1997--Individual investors are at a disadvantage
because they do not have the
same access as institutional holders to timely corporate information, a leading private
investment education firm said today.
"While recent surveys done by NASDAQ indicate individual ownership of common
stock is growing to record levels
in America, individuals remain excluded from important conference calls and analysts'
meetings that give large block
holders the latest financial information quicker," said Steve Chanecka, president of
Informed Investors, Inc., a
Sacramento-based investment education company.
"It's time companies invest a portion of their investor relations budgets in keeping
individual investors better
informed, specifically with regular meetings with management," Chanecka said. "There
needs to be a level playing
field for individual investors. There isn't now.
"A story in the March 6 Wall Street Journal said that large investors on conference
calls after major corporate
announcements often trade based on information they receive during the call,"
Chanecka said. "These practices are
inherently unfair to the individual investor."
Tim Quast, chief operating officer of Informed Investors, said the retail channel --
individual investors -- is well
worth developing.
"Individuals are long-term, loyal investors whose ownership helps reduce volatility in
stocks that have high
institutional ownership," Quast said. "Individuals don't bail out if a company misses its
quarterly estimate by a penny if the long-term plan is on track. The best long-term
stocks typically have a strong retail ownership core.
"According to the Securities Industry Association, 76 percent of U.S. equities are
owned by individuals. Yet a National Investor Relations Institute (NIRI) survey in
October, 1996 showed that only 23 percent of investor relations
activities are focused on individuals."
Quast applauded a current NASDAQ campaign targeting individual investors. "We
urge NASDAQ to join with
Informed Investors in encouraging member companies to participate in analyst-style
meetings for individual
investors."
Informed Investors Forums has been linking companies' managements through
analyst-style meetings with individual
investors since 1993, primarily in Northern California
Participants include some of the NASDAQ's most exciting companies, including many
from Silicon Valley, the
world's high-technology center. NASDAQ companies that have participated in
Informed Investor Forums include:
Agouron Pharmaceuticals (AGPH); Applied Materials (AMAT); Ascend
Communications (ASND); Atmel Corp. (ATML); Autodesk (ACAD); Coherent
(COHR); Boole & Babbage (BOOL); Credence Systems (CMOS); Electronic Arts
(ERTS); Fair, Isaac & Co. (FICI); Granite Construction (GCCO); Ikos Systems
(IKOS); Insite Vision (INSV);
Ligand Pharmaceuticals (LGND), Macromedia (MACR), OnTrak Systems (ONTK);
Silicon Valley Group (SVGI); Synopsys (SNPS); Tencor Instruments (TNCR);
Veritas Software (VRTS); Viasoft (VIAS) and XOMA Corp. (XOMA).
On Saturday, March 15, Informed Investors Forum is hosting its Second Annual
Biotechnology Forum in
Emeryville, CA, near Oakland.
Jim McCamant, publisher of the Medical Technology Stock Letter, is keynote
speaker. Companies presenting include
NASDAQ companies Xoma Corp., Sugen (SUGN) and Shaman Pharmaceuticals
(SHMN).
Call Informed Investors Forum at 800/992-4683 for more information.
CONTACT: Informed Investors
Tim Quast, 800/992-4683
Steve Chanecka, 916/455-2754
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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