Genlyte Group Inc. – The company’s outreach to the investment community had been inconsistent, and despite record earnings, the lighting and fixtures manufacturer was undervalued and under appreciated.
Genlyte, a company supplying lighting and fixtures to commercial, residential and industrial markets, was posting record sales and profits a despite rough economy. Stock performance was lackluster. The company’s outreach to the investment community was inconsistent.
WHAT WE DID:
We designed a comprehensive program to fight back. First, we asked management what problems they thought investors had with Genlyte. They felt, because of a recent merger, the corporate structure wasn’t well understood. Then we surveyed analysts and institutional fund managers, asking them about company performance, quality of management, and the existing investor relations program.
We shared our findings and potential messaging with management, scheduled investor conversations with the CFO, sent information packages, developed a quarterly fact sheet and sent it to building products analysts and fund managers, and launched a campaign to reach national business media.
Genlyte’s stock price moved to a 52-week high while its peer group increased only incrementally and the NASDAQ index fell sharply. The stock’s P/E began trading at higher multiples. Genlyte was later acquired at a premium by Philips.