Hayden Communications’ Brett Maas Offers Advice for Small-Cap Companies to Survive..

Hayden Communications’ Brett Maas Offers Advice for Small-Cap Companies to
Survive the Crisis

NEW YORK, Oct. 28 /PRNewswire/ — Brett Maas, President of Hayden
Communications, Inc, a national investor relations firm focused on emerging
small- and micro-cap publicly traded companies with significant growth
potential, today provided advice for small public companies to deal with the
financial crisis. The precipitous drop in Wall Street valuations have hit
smaller companies particularly hard. Mr. Maas today offered advice based on
the feedback received from the many interactions he has had with institutional
investors, hedge fund managers, research analysts and other professional
investors, as well as the success of certain clients during this period:
— Focus on profitability: The lack of access to external working capital
and the focus on solvency has made it increasingly important for public
companies to do whatever can be done to drive positive cash flow. The
investors who are putting money to work are typically focused on profitable
companies. It is incumbent on management teams to eliminate unprofitable
operations, restructure, if needed, and delay acquisitions or initiatives
which may impact profitability. In addition, management teams should clearly,
concisely and proactively communicate their plans to investors to demonstrate
precisely how profitability will be achieved (or expanded).
— Strengthen balance sheets: If a company has the ability to solidify its
working capital situation, now is the time to pursue those opportunities.
There are two reasons: first, it may be impossible in a few weeks or months,
and second, nobody is in the mood to take risks right now. Management must
eliminate obvious risks as proactively and publicly as possible. Investigate
debt financing or lines of credit with banks and, if possible, restructure
debentures or existing liabilities.
— Talk more, not less: Many CEOs instinctively want to focus on the
business and ignore the stock. After all, everything is going down and there’s
a perception that there’s nothing one can do about it. When professional
investors once again actively put money to work, it is likely they will look
for growth. The goal of management teams at this point should be to talk to
new people as much as possible. Even if they don’t buy today, the objective is
to become the first idea on their list when they get back to work.
Mr. Maas added, “Proactive and aggressive investor relations efforts are
more important than ever in these market conditions. This means trying to keep
existing shareholders in place and reaching out to appropriate new contacts
and providing clear and convincing reasons to consider a new investment. This
is more challenging if you are not profitable, or are poorly capitalized.
Despite the near-term crisis, those who are appropriately proactive will
benefit both first and most when the market begins to turn, and it always does
turn. Hayden Communications has continued to demonstrate the capability to put
high-quality companies in front of appropriate investors, despite the economic
This is not an offer to sell or a solicitation of an offer to buy any
securities. HC and its affiliates, officers, directors, subsidiaries and
agents have been compensated by its clients to perform shareholder and
investor relation services. Each contract varies in duration, services
performed and compensation received. HC, its employees, consultants and
affiliates may, from time to time, acquire positions in the companies that
they cover. This could represent a conflict of interest. More information is
available at: http://www.haydenir.com/email_disclaimer.html
Brett Maas
Hayden Communications
(646) 536-7331

SOURCE Hayden Communications, Inc

Brett Maas of Hayden Communications, +1-646-536-7331, brett@haydenir.com