THE PALOMA PROJECT MANIFESTO
Some days change everything, and on March 12, plans changed for everyone, everywhere.
hat moment, it became abruptly evident that things were never going to be as we had known them for the last two or three generations. Although many deniers refused to believe that, the truth is all our reality, and especially that of the markets, has changed permanently.
One of the spaces where it has been most altered is in the areas of Investor Relations and Financial Communications. Which happen to be our area of work.
We were never able to board that plane that was going to take us to New York from London on March 13.
From the lockdown, market charts started to reveal to us that economic reality, very soon, was going to be a new one.
In just a few weeks, while we all watched in awe what was happening on the health front, the business world was beginning to fall apart. Wages were cut, benefits were withdrawn, trade came to a standstill, shops began to close, we all started to telework, and the stock markets seemed to be crumbling for an endless few weeks.
However, out of nowhere, some listed corporations began to offer incredible, maximum, historical results, and some of those were, specifically, our clients.
Some of the companies that appeared to grow, improve and endure were close to us. We knew them, and we knew that they were the ones with the most innovative models, the most significant commitment to creating and adopting cutting-edge technologies and the most creative in the way they engage the investment community.
Many things have changed forever, and among them, the way in which listed companies are going to have to conceptualize their Investor Relations programmes.
Within the COVID-19 battle, those of us involved in planning IR strategies learnt that companies must make it a short-term priority to implement efforts that generate not only investor confidence, but admiration.
Amid the first coronavirus wave, the Financial Reporting Lab in the United Kingdom said that investors were going to ask themselves the same five questions over and over again about the companies they were betting on.
In the near future, investors will be asking how much liquidity does a company have, how much cash can a corporation accumulate in the short term, what can they do to manage short-term levels of spending, what actions can they take to ensure their viability, and how do they plan to protect their critical assets in the instant future.
Investors, since the beginning of the crisis, are actively looking for companies that contribute definite answers to these questions. We believe it is our job to help companies narrate their story and answer those questions.
In the face of COVID-19, the community expects Investor Relations efforts that provide specific, energetic, fast and timely information that will produce real value, build confidence, and help them make decisions.
As professionals, the first lesson we have learned during the pandemic is that there is nothing more important than maintaining continuous contact with the investment community, no matter how large or small it is.
Even if the perspective is not the best, or precisely because the perspective is not the best, it is more valuable than ever for the Investor Relations departments to consistently and coherently address the markets to provide clarity and guidance.
Secondly, companies, as economic leaders, must be the voice of reason and provide transparency, without hiding any facts. Things are complicated; we all know that, and investors respect those who will tell them the truth.
Finally, it is decisive to keep the markets updated – always following the regulatory guidelines – with information that justifies the fair price of securities, trying to put quantitative information above fanciful valuations.
At this point, there is nothing more important than communicating regularly and creating faster channels of communication. Technology will rule, for good.
The objective is clear: we must maintain investor confidence in these times of crisis. As long as we bring value in our communications, market players will turn to us for advice and guidance.
We have helped build unquestionable successes: companies that have gone from being small newcomers to market stars, and which small investors will fight for, protect and defend against any unfair analysis or market shocks.
The Investor Relations of the future will require new levels of clarity, new currents of information, more creative and less obsolete, and the construction of lightweight, fast digital and global structures.
And that is why The Paloma Project is born. A lightweight, fast, global and digital Investor Relations and communications company with a worldwide scope, technological commitment and strengthened by decades of experience,
technical accreditations from the world’s leading institutions and experience in the Paris, New York and Madrid markets.
Because now, in the brave new world to come, a clear philosophy on what makes issuer-investor relationships meaningful is more important than ever.
Here we are to accomplish precisely that.