INVESTMENT COMMUNITY PERSPECTIVE

As an IR practitioner, you have to arm yourself with lots of information to be able to address questions and concerns and to understand where your company fits among its peers and in the marketplace. But where do you get the information? I assume that you know how to obtain information on your own company, but where do you get data on your industry and related trends?

Prioritize Your Efforts

Before you run out and gather so much information that you too are drinking from a fire hose, prioritize the information you will need. Here is a simple rule: target information that drives your business or industry.

The level of detail required depends on the market in which your company operates. Is it a global player? You will need global data. Is it a national player? That may well mean that you need national data but still ought to understand the global picture. If your company is a regional player then you need regional data and an understanding of national data but perhaps just a cursory knowledge of the global picture.

I’ll use the oil and gas industry as an example and you can apply the ideas to your own situation.

Industry Organizations

In Canada, the Canadian Association of Petroleum Producers (CAPP) writes many reports and gathers information about the oil and gas industry. Make your company’s industry organization a first stop in gathering data. CAPP makes its members' jobs easier by digging through information from Statistics Canada and doing surveys. Many industry organizations, including CAPP, also make forecasts. This kind of information will help you by providing insight into whether your industry is growing and where there may be opportunities. You can be sure that your competitors will be tracking this as well. Being well versed in key developments with respect to your industry will save you when you discuss your company. (For example, how much oil and gas does Canada produce daily? What percentage of the Canadian market does your company represent?)

Government

Check out Government of Canada websites like Statistics Canada, as well as provincial online sources. If you ask, your research analyst contacts will most will likely point your toward sources of government data. Depending on the business, you may even try regional or municipal governments for data. Sometimes a pleasant request will go a long way to getting others to help you.

Competitors’ Reports

Not everything you do has to be original. Perhaps competitors have gathered interesting data and statistics. Read their reports and look for ideas. Sometimes competitors are renowned for their data collection on the industry (for example, BP puts out a top-notch global energy report and many in the industry use the data – awaiting BP’s annual report to update their own tables). These types of documents may help you to determine where to gather information for your company. Do not be afraid to ask your competitors; although you may compete for business, you are collectively trying to build the industry.

Research Analysts

Research analysts dig through all kinds of information to analyze stocks and are always more than happy to supply their research reports to readers. Get a list of research analysts who cover your industry and call them. Ask to be on their mailing lists. Then read their reports and comments. Call if you have questions about the material but do show that you have read their reports and at least have done some of your own work. Analysts are often asked to provide some of their work (most commonly, tables and charts) for a company’s presentation. If you use analysts’ charts or tables be sure to acknowledge the source; you should always indicate the source for your charts and tables.

Media

I am often amazed and impressed by data that appears in the media – and even more often by the eye-catching presentation skills used in articles and reports. This applies to not only newspapers but also to magazines (including trade publications) and periodicals. However, understand the source of the data and if you are unsure of its quality, perhaps try to replicate it. Again, do not be afraid to phone the source but likewise don’t be surprised if you are asked to return the favor by providing information for a report or article.

The Internet

Often great information is found through the use of search engines. I identified an amazing source of daily oil and gas articles and data by digging around online. Be very careful, though, about the credibility of the source.

Ask Around Your Office

You may be shocked to find that the information you require is already somewhere in your organization; you just need to find it. Perhaps you have a marketing department that has much of what you need; or try engineering or manufacturing. Have you checked with your CFO? Also, your company’s auditors often write industry reports. Maybe your CEO or COO subscribes to independent reports that are chock-full of useful information. As an IR practitioner, you should know all of the key people in your organization. Bear in mind this process is a two-way street and perhaps you have information, or access to information, that will be useful to your source.

Keep A Database

Once you have found key information, build on it. Make sure that others in your organization are aware of your growing database, as they are then more likely to provide you with additional input, or use your data to make better decisions to run the business. All of this increases your effectiveness and your value. The best businesses operate on a strong foundation of good information, which is not developed by accident but by design.

Dirk Lever is Managing Director, Institutional Equity Research, AltaCorp Capital Inc.