01 · Challenge
The Challenge
When Hayden IR began representing NEI on December 1, 2008, the stock was trading near an all-time low, the market cap was approximately $16 million and the company was at risk of being delisted from Nasdaq.
02 · Solution
Our Solution
- Repositioned the company and reset expectations for Wall Street, clearly demonstrating the strength of the balance sheet and the improving profitability profile
- Targeted deep-value investors, ratcheting up proactive outreach when the stock’s valuation dipped to historical and relative lows
- Executed 30 days of investor meetings covering 10 U.S. cities and arranged dozens of conference call introductions
- Developed a corporate profile and supporting presentations for the investment community
- Coordinated quarterly conference calls and webcasts and prepared accompanying scripts
- Directly introduced two research analysts to the company
03 · Impact
The Impact
- Share price rose 850%, from $0.38 (December 1, 2008) to a high of $3.61 (April 23, 2010), as market cap grew from $16 million to a high of $154 million
- Successfully avoided potential delisting from Nasdaq
- Perritt Capital purchased more than 300,000 shares, Pegasus Capital and Pilot Advisors became significant institutional investors, and several existing institutions substantially increased their positions
- Helped the company avoid stock price erosion when one of its largest shareholders disbanded its fund and fully exited its position
- One of the two research analysts introduced by Hayden IR initiated coverage
- NEI was acquired by UNICOM Systems, Inc. and ceased trading on Nasdaq on September 18, 2012; stockholders received $1.45 per share, a 71% premium to the $0.85 price at the time of the merger agreement
Past results are not indicative of future performance. Figures are as reported in Hayden IR’s case study for NEI, Inc. See our disclosures.
