By Mark Gell, Partner, Reputation Edge.
All to often we read stories of companies that publish overly positive projections. Or, they fail to inform the market of the negatives that can impact their earnings. We understand the urge to paint the brightest picture but at what cost?
Companies need to be smart about the way they position the market. Just today Get Swift has been highlighted in the media for being “too fast for its own good”. There is a huge temptation when a company is on an aggressive growth path to “push” the story hard. But this becomes a self fulfilling prophecy of failure if it can’t be delivered.
The markets are looking for companies that deliver on what they say they will deliver – and do it consistently over time. It is from this foundation that companies can build a strong PE ratio, not by promising to deliver big numbers.
This is where positioning results is extremely important. Always leave the upside, don’t sell it.
Reputation Edge are experts in positioning results with partners managing difficult results for companies for almost 30 years. It is our stock in trade.