Catalyst Pathways - The Rubis Five-Step Plan to Fix a Stock Under $5
- stevenrubis
- Dec 28, 2023
- 1 min read
The toughest problem or situation a public company can face revolves around its share price going below $5, and even worse if it goes below $1.
Typically, a company breeches these thresholds because of a major crisis that negatively impacts the company.
Once the stock breaks the $5 threshold, the stock will likely remain there, like a soul in purgatory, for a long time.
Management and investors will often say, “the stock trades by appointment.”
A euphemism for the fact that your stock does not really exist to professional investors anymore.
How do you execute an Investor Relations program in such an environment?
The foundation starts with basic blocking and tackling and avoiding short cuts to drive the stock higher.
The Rubis Five-Step Turnaround Cycle involves the following:
1. Extreme Change
2. Developing a 3-to-5-year Plan
3. Analyst Day – Really Powerful if stock is < $5
4. Execute on the Catalyst Pathway Overtime
5. Continuously Update the Catalyst Pathway
The five-step process described above can rejuvenate any stock facing a lack of interest from investors.
These four steps are the natural cycle to rebuilding credibility and investor interest.
There are three components that can supercharge the turnaround cycle:
1. Unique Proprietary Advantage: Technology or Assets
2. Unique Financial Metrics: Golden metrics for your company
3. Secular Bull Market for Your Particular Industry
While the turnaround cycle appears simple and easy, most companies fail to drive a successful turnaround.
Fixing a sub $5 stock takes strong discipline, an immense amount of work, and extreme patience.
Коментарі