Baldwin Technologies (BLD), based in Shelton, CT, retained Hawk Associates in September 2005 to provide investor relations services.
Baldwin is a leading global provider of accessories and cleaning materials for the printing industry. The company was faced with a growing image problem with investors because of perceptions that part of its core customer base, the newspaper industry, was in a state of decline. The company had no retail exposure and no active institutional outreach.
The company’s modest internally driven IR program included issuing occasional press releases and making periodic contact with the few institutions that held the stock. With a market cap of $62 million and a share price of $4.22, the company had minimal Wall Street exposure.
The Hawk program for Baldwin began with proactive retail exposure provided through two Hawk websites along with the Hawk investment profile and a new program of email alerts. For the first time, the company was able to reach retail investors with its message.
At the same time, Hawk began an active outreach program to the institutional community beginning with visits by the company’s CFO to all major shareholders. New institutions were introduced to Baldwin through one-on-one meetings scheduled by Hawk. The company was encouraged to stay in close, regular contact with existing institutional holders.
Hawk created an investment profile and set up a new email alert system. Hawk worked closely with the management team to create striking new presentation materials for the investment community.
Hawk arranged for Baldwin to be invited to a number of institutional investor conferences including the Noble Forum. Hawk continued to organize company meetings with investors including hosting a breakfast presentation with institutional buyers in conjunction with the major printing trade show in Chicago. The list of the company’s institutional owners began to grow.
At the urging of Hawk, Baldwin engaged Dutton Associates to provide paid analyst coverage providing ever further exposure for the company’s message.
In the spring of 2007, the company began a management shift that included a new CFO and a new CEO. The new management team decided to return to its internal only IR program and did not renew the Hawk contract.
At the conclusion of Hawk’s services, the company’s market cap was $91.2 million. The shares were trading at $6.04 and had traded as high at $6.25.
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As a matter of written company policy, neither Hawk Associates nor its employees trade in the shares of the companies it represents. At no time during the service to Baldwin, did Hawk or any of its employees own any Baldwin stock nor was Hawk provided with any warrants or options.
