Reputation Management Online

Most public companies use (IR) investor relations companies to ensure they are communicating with their shareholders.   The influence of financial social media sites is very real and CEO’s should be paying attention to all comments that are being made.

I was researching a trade the other day and I realized that I was paying attention to comments on google finance www.google.com/finance The post was anonymous BUT I still paid attention to it, why?  It seemed authentic from an independent investor like me.  Sites such as www.seekingalpha.com have independent investors giving you detailed explanations of their trading strategies and what stocks they own.  Do companies really understand the impact that “chatter” on financial blogs, forums and social media sites can have on their stock?  Do the IR firms even have a strategy for this?  If you do I would love to hear from you.

I found an interesting example the other day;  NYSE: YUM   Yum Brands is a ~$15BN company, one its main assets is Kentucky Fried Chicken.  Type the keyword “Kentucky Fried Chicken” into google and on number  5 or 6 you will find negative posts from websites called www.kentuckyfriedcruelty.com Why would their PR company or IR company not deal with this?

Maybe if you are a $15BN stock NYSE: YUM you don’t bother but I am amazed that thinly traded OTCBB and pink sheet stocks are also not handling their online reputations.  IR and PR companies should be proactive and be working with leading online reputation management firms.