Intrado

Industry Sector: Telecom Services
Background
Genesis Select was introduced to Intrado, Inc. (formally SCC Communications) in April of 2000 by one of the company’s few remaining large institutional shareholders. At that time, the stock traded at around $ 6.00 a share with an average daily trading volume of under 25,000 shares. The company had a market capitalization of approximately $60 million, with virtually no research coverage other than an outdated financial model by one of the firm’s former IPO bankers. In 1998, the Street had misjudged how fast a key rollout would occur within one of the company’s core markets, and as a result the company was under followed, and virtually abandoned by the institutional market.
The Genesis Approach
Genesis Select consulted with a sample group of investors to get a first-hand view of the company’s investor presentation. Then we began a comprehensive review and re-positioning of the road show presentation, focusing on the simplicity of Intrado’s business model and clearly identifying the leverage in the model across numerous vertical markets, using all of the same core competencies. The roadshow was adapted to address answers to the questions asked most often by investors — namely why should this equity be bought now and at this price. We encouraged the management team to provide very conservative forward guidance, allowing research analysts a basis from which to build a representative financial model and form their own conclusions. The Genesis team identified a group of 13 potential brokerage firms that followed companies in similar industries. Using a targeted list of management firms, Genesis took management on a choreographed series of presentations across the country targeting both institutional investors and Wall Street brokerage firms.
The Genesis Effect
As the company exceeded their forecasts, awareness of Intrado grew substantially during an abysmal period in the Telcom services stocks. Nine research reports and follow-on coverage reports were generated out of those original thirteen targeted brokerage firms. The average daily trading volume has increased nearly tenfold to over 290,000 shares a day. Most remarkably, the underlying equity has appreciated over 500 percent and was Colorado’s number one stock performer for 2001.
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