Welcome to the SIGOREX Management GmbH.

The new challenges for small- und mid caps

Since the crisis in 2008 mid and small cap companies are facing a hard time to get the attention at the market equity market and there is more than one reason for it: The crisis of 2008 led to crashing courses with almost no exception. The lower market cap let the small and mid cap companies disappear from the screens of the institutional investors. They are only allowed to invest up from a certain market cap level. An escape to the large caps followed, because they seemed more secure. Private investors who invested in small caps could not provide a counterpart numerically to that movement, because the number of private investors is shrinking in Germany. They prefer investing in indexes (indexes, funds, ETF etc.) or saving with funds. The effect intensifies by that and the vicious circle for the small and mid cap companies starts.

In the end it takes a huge show of strength to revitalize a stock. To prevent to even get to that point, consider the most important rules and we support you:

To the poin

The story of your company hast o be attractive for the target audience and right to the point.

Information flow

It is essential to inform regularly about the development of the company. To publish quarterly reports is obligatory for a professional communication, but not effectually.

Prognosis management

A professional prognosis management is essential for a successful equity market communication for analysts and investors. Small and mid caps have to act as professional regarding an expectation management as large caps. A concrete guidance is obligatory and divergences need to be explained promptly and comprehensible.

Achieving published aims

Companies who cannot or do not want to prognose their business plan in very precise terms, which lies in the nature of the exploration business, should switch to quality statements or scenarios. A realistic scenario (fair case) should go hand in hand with important facts as well as a negative scenario. Only if the investors are aware of the risk, the investors can get sustainable involved and can take set backs.

Presence is obligatory

The top management should not only enjoy being celebrated by journalists for their success but also seek the contact in times of bad news. Especially with small and mid caps but even more with junior mining and exploration companies it is expected to get a quick and uncomplicated access to the top management.

Transparency is obligatory

Detailed information about liquidity, cash-flow and financing including the publication of terms of credits create more transparency.

Requested research

Even though the view was skeptical about it just a few years ago and was called untrustworthy, requested research wins importance. Today the acceptance has remarkably increased and the motto is: better having a research requested from a trustworthy contractor than having no external opinion at all.