"If a company has X potential shareholders and X thousands of shareholders AND everyone wants to do due diligence, how and when are the company officials and employees going to get anything done?"
Emory, its true that it is sometimes difficult and if this were reality, there would be a problem. However, the reality is that very few people call the company and do much in the way of due diligence because of a lack of confidence. If persistent, I almost always am able to contact the people I want. If they don't respond and I feel I need information to make a decision, I will not invest. Remember, that I invest in small cap stocks where the company should be motivated to please shareholders in order to raise further capital at reasonable prices. In the small caps, the President normally expects to field a number of shareholder calls a week. I also find that if you take a positive approach, prepare and ask intelligent questions, hit it off and have other things in common to talk about, they will soon answer your calls before others because it becomes partly social. If, on the other hand, one is an A#$ and takes the approach of making accusations and negative assumptions instead of trying to understand their position, one can expect to be last in the queue. This last approach is all too common which makes it even easier for me.
I usually pick the Business Development person, the president and/or an operations V-P depending on the issues.
Rob |
