what do small cap investors want?

In a survey conducted by Agoracom, of 850+ Canadian retail investors, the following findings were made :

  • 81% of Investors Prefer Small-Cap Resource Companies over Large-Cap.
  • 48.4% of Investors were most Bullish on Gold compared to other minerals and metals.
  • 73% of Investors Conduct the Majority of their Research (75%+) into New Stocks Online. This is a dramatic 18.65% increase over 67% of respondents in 2007 and serves as proof positive that an online investor relations program is critical if you want to reach new investors.
  • 48% of Investors Conduct All of their Research (95%+) into New Stocks Online. No online IR program means you immediately miss out on 48% of all investors.
  • 60% of Investors Use Discussion Forums For Information and/or Research.

  • AGORACOM brand recognition amongst retail investors has risen by 360% over the same period last year. With 95% of our market budget allocated online, we are an actual case study about the power of online marketing to small-cap investors.

QUESTION #3 – What Percentage Of Your Research Into New Stocks Is Done Online?

100% of Research (21%)

90% of Research (27%)

75% of Research (25%)

50% of Research (18%)

< 50% of Research (16%)

NOTE: This is one of the most striking statistics in the entire survey. Specifically, 73% of small-cap investors use the web to conduct the majority (75% +) of their research into new stocks.

Even more striking is that fact that 48% of investors rely on the web entirely to find their next small-cap investment.

Finally, after averaging the numbers out, the web accounts for 77.05% of all research into new small-cap investments.

These figures are both striking and logical when you consider the fact that major finance media provides very little, if any, small-cap and micro-cap coverage.

Based on these figures, a CEO that fails to implement an online IR strategy is doing a great disservice to their company and shareholders.

excellent results from the survey by Agoracom. Retail investors were being arrogantly branded as nuisances less than a year ago, but with the increased shareholder activism and the market we’re in, they may be the best discerners of growth.

About Derek

My key interests are online investor relations, websites, social media, enterprise 2.0 and intranets, and XBRL. Speak to me if you need a solution in any of these disciplines, or follow my knowledge links on this site and others. Find me on Twitter, LinkedIn or in recent conversations.