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

However, you may need to refine your messages.

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.

Another valuable lesson was learned after joining a company shortly after it raised capital through a secondary public offering and stock buyback in order to purchase shares held by the parent company after the spin-off several years prior. In addition to increasing its float while reducing its total number of shares outstanding, the company also used this opportunity to change its fiscal year.

Although a great strategy, the news confused investors and increased their uncertainty about properly valuing the stock and the company's future prospects to growth. This perceived inability to properly communicate all of the changes in a timely manner had the unintended consequence of raising questions about the management team's ability to operate as an independent company separate from the parent.

The valuation of our stock improved as we resolved the uncertainty.

Lesson: The professional investment community is capable of digesting incredible amounts of change quickly if they are provided accurate, comprehensive information in a timely manner. The valuation of your stock will reflect the quality of information provided. It will also reflect the absence of information which creates uncertainty.

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