The Ferris Bueller Problem of Investor Relations occurs when a company puts for the absolute minimum effort around Investor Relations in order to drive as litte interaction with investors as possible. The phenomenon typically occurs in activist or crisis situations. Other examples are exciting mega-cap growth stories doing Investor Relations as if they are a micro-cap biotech company. The tell-tale signs of the Ferris Bueller problem are: 1.) No investor deck 2.) Bad website 3.) Poor earnings disclosures 4.) No defined competitive set 5.) No defined Total Addressable Market opportunity 6.) A lack of defined key metrics Successful IR requires one thing: accessibility. Is the IRO available when an investor has questions. If you suffer from the Ferris Bueller problem the fix is easy, hire a strong IRO.
