Managing expectations shouldn't require you to change the company to meet investor expectations.

However, you may need to modify your approach.

If an investor is not pleased with the progress your company is making, perhaps their investment style doesn't match your investment characteristics.

You may need to refine your shareholder mix.

If dedicating 40 percent or more of your time to the financial community is not producing the desired results, more of the same will only increase your frustration rather than increase the valuation of your stock.

Perhaps you aren't allocating your time appropriately.

My introduction to investor relations occurred when the company I was working for at the time announced an acquisition.

This action didn't match shareholder expectations and the stock price declined rapidly. We responded with a one-day event at the headquarters of the company we were acquiring to explain the strategic significance of the acquisition in person to existing as well as prospective investors.

The stock price reversed and began to properly reflect the added value of the acquired company.

Lesson: Informed markets make sound investment decisions. Managing your relationship with the financial community requires time and money. Companies can make that investment in a planned and proactive manner or in an unplanned and reactive manner, which risks the disruption of normal operations.

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