“In contrast, Mr. Schwartz has posted his thoughts, very much on the fly, five times a month for two years. Over time he has earned credibility by his willingness to put in public view his unfiltered ruminations on a regular basis.

That credibility was needed last week, when he sought to put a positive spin on Sun’s quarterly earnings, his first as chief executive….
After the earnings release, Mr. Schwartz itemized on his blog the many positive developments that he sees in the company’s business. Viewed alone, it would be easy for unhappy investors to dismiss. But read as the latest installment of candid self-evaluations of the company’s strategic initiatives and performance, Mr. Schwartz’s optimism exerts a tonic effect.”

1:Many Communications

The article also raises an advantage of blogging that we have been stating from day 1 through our web-based IR system. Specifically, the advantage and efficiency of 1:Many vs 1:1 communications.

Best,
George

Why?

Investors are savvy people and they know when they’re being fed a canned message. For the most part, they’re OK with that because they understand that a CEO needs to spend mos of their time selling widgets and creating shareholder value. However, nothing builds long-term loyalty better than direct communications from a CEO that genuinely wants to build a long-term relationship with shareholders. That can only be accomplished when he/she walks out from behind the desk, rolls up the sleeves and shares real moments with them. In a world of firewalls and Chinese walls, investors are hungry for it.

Trust me, investors know the difference and appreciate it. It truly pays dividends during the tough times when a CEO requires and requests faith in his command, which shareholders will provide thanks to credit built over time.

In response to the issue about time requirements, it is true that a blog takes a great deal of time but shareholder expectations can be managed by letting them know there will be times when business prorities prevent regular posting. Even 1 post every 2 weeks will more than suffice, while anything more frequent will simply be a bonus.

We’ve built a pretty robust business out of providing the investment community with direct access to executives of micro-cap companies, so I hope my input has helped shed some valuable light on the topic.

Best,
George

Oh looky, it’s Monday’s IT Blogwatch, in which we ask, Why don’t more CEOs blog? Not to mention a classic example of why you should never write email or send voicemail that you wouldn’t want blogged — are you listening, Darren Sherman?…..