Re:Clarity30 Sep 2017 15:46
Cont'd
5) "Leadership" Source http://www.edenresearch.com/about-us/leadership Leadership comes in many forms and one of the requirements of a listed company is to deliver value through the share price to investors. At the moment, Eden appears to have either no idea how to do this or no apparent enthusiasm to do this. This is a huge mistake on their part and the share price is the measurable product as to the appeal and the opportunity of Eden Research. Share prices should move in line with commercial success, even more so with "significant commercial success!" To facilitate a market cap that lags behind commercial success when there is no reason to do so and when markets at large are doing well is remiss
Financial PR firms specialise in, among other things, "crisis management". Powerscourt claims on their website to be the "the City's pre-eminent communications adviser on reputational and contentious matters".
In terms of corporate positioning they state "You have an interesting story to tell: our job is to help you identify it, express it and distribute it".
Well as far as I can see, Eden very much has a reputational issue through their share price. The story that is out there is not aligned to value and this is damaging the investment case in Eden Research. The share price and actions of investors clearly indicate this and has done so over the last few years. Look at how many shares were traded the day Eden announced the Eastman deal. Then look at Friday's interims announcement, first ever profit and look at the shares traded and the resulting price action.
Investors cannot see the investment case. I believe it is there in the product, but management and their advisers are not paying attention to their invested and potential investor audience. Address the retail audience and the institutional investors will take care of themselves.
If in the coming years they wish to benefit from pay, bonuses and share options then they should address the share price now and keep a constant focus on ensuring this is aligned to commercial success, so that their pay, bonuses and share options are well deserved. This is what everyone wants!