— dielawn (@Dyro01676) January 9, 2017
There’s an old way of thinking in the marketing game that, if you can sell to those that don’t like you, the rest of the market will take care of itself.
This thinking was presumably afoot when a large Lexaria Biosciences (LXX.C) investor called me a few weeks back to ask that I take another look at LXX. I’ve kicked that company about for a solid year, riding them for their overhypey news releases and non-clear business model.
But I’m always happy to give someone a chance to make their case, even if I’ve been calling them pumpy for some time. So we set up a call and talked. And I recorded it for use on the Equity.Guru podcast.
You can hear that call here:
Lexaria took a chance in offering the call. I was not their biggest fan and regular readers know I’m handy with a shiv. But, just as Lifestyle Delivery Systems CEO Brad Eckenweiler had a week earlier (leading to a stock price spike), they took a chance that the things that rankled me were things of the past, and that they could make a good case for a reassessment.
So how’d it do? Funny thing – New Years traffic not being the highest, the episode didn’t get a lot of listens initially, but Friday and Saturday the listen numbers ramped up as, presumably, folks started coming back to their portfolios after the holidays.
By the open of trading Monday, Lexaria was up over 30% on the day, eventually settling to $0.75. That’s up from $0.40 before our podcast. It had hit $0.54 by Friday’s open.
I could boast and brag about this being a testament to the strength of our readership, that the market responded the way it did, with no news out there, but the reality is Lexaria management should be commended for finding their biggest hater, extending the hand of communication to him, and bringing the guy back a little.
A little. Still some way to go. But I’m watching.
— Chris Parry