01 · Challenge
The Challenge
When Hayden IR began representing TechPrecision on January 15, 2010, the stock traded at $0.85 on the OTC Bulletin Board, a market cap of approximately $12.1 million. During the engagement the company had several negative quarterly surprises, and its float grew from 5.5 million to 11.6 million shares through the conversion of convertible debentures and subsequent liquidations.
02 · Solution
Our Solution
- Developed collateral and positioned the company within the investment community as a unique growth opportunity
- Made more than 200 unique introductions, including 85 institutional funds and 28 high-net-worth individuals, and arranged face-to-face meetings with more than 60 funds
- Secured invitations to four conferences per year
- Helped management navigate several negative quarterly surprises, preserving value by communicating effectively with investors and focusing attention on the long-term outlook
- Encouraged management to use slide presentations on quarterly earnings calls, helping investors see underlying progress not evident in the financial statements
- Executed strategies to reach retail and institutional investors as well as research analysts
03 · Impact
The Impact
- Stock hit a high of $1.82, up 114% from $0.85 when Hayden IR was hired; a year into the engagement it traded at $1.80, a 28-month closing high, for a market cap of $25.7 million
- Share price rose 42%, from $0.85 (January 15, 2010) to $1.21 (December 31, 2012), with market cap at $23.7 million
- From January through December 2012, TPCS’s valuation increased 36%, significantly outpacing the Russell 2000 (up 13%) and the Nasdaq Composite (down 0.8%)
- Share volume increased 173%, to 6.3 million shares in the first year of engagement from 2.3 million in 2009, and 352%, to 10.4 million shares, from January 15, 2010 through December 21, 2012
- New investors absorbed the float increase from 5.5 million to 11.6 million shares, stock that would normally be an overhang
- Participation in quarterly results conference calls increased more than 150%, and the number of professional investors following company news more than tripled
Past results are not indicative of future performance. Figures are as reported in Hayden IR’s case study for TechPrecision Corporation. See our disclosures.
