I have just realised why RAC has skyrocketed, page-33

We released price sensitive news yesterday and there were many questions and I tried to answer as many as I could. The release was technically complex (not as complex as the 80 page report it summarises) so this is understandable. Part of my job as CSO is to make scientifically complex news understandable by people who don’t happen to have a PhD in molecular biology.

On a more general note, social media has changed the world and fundamentally altered the way public companies can communicate with their shareholders. It is my strong belief that shareholders in companies like RAC are partners, not just passive sources of capital to be ignored between capital raises. Too many companies are lazily following the old ways where the only way of communicating with shareholders was via ASX releases or annual reports. A few companies have recognised that it is possible within the ASX and ASIC rules to open a two-way conversation with their shareholders using social medial and involve them in their business mission. The only thing that surprises me is how few companies make the effort to use the new communication tools available.

As a general rule I assume if someone asks me a question there are a minimum of 100 other people who have exactly the same question, but who are too scared or polite to ask. Shareholder can and do email or phone me all the time, but it is far more efficient for me to answer here on HC or twitter, facebook, linkedin, or any of the other social media platforms that allow me to communicate our shareholders.

If all this outreach has affected the SP it is hard to be certain, but I would hope that having shareholders who better understand our complex business encourages them to feel comfortable owning RAC. We have a great opportunity with Bisantrene, but nobody is going to invest in RAC if they have never heard of the company nor understands what we are trying to do.