Corporate Websites:
More Important Than You Might Think

by Samantha Marcelo

The corporate website has become the first place current and potential investors visit for investment information on public companies, replacing phone calls and annual reports. As an investor, you can make some quick judgments about a company based on its website. Investors get a taste for the company's level of organization, standards for disclosure and ability to stay current. With this in mind, a corporate website needs to be informative and easy to navigate while also visually appealing.

In three years of iQ research, we have visited hundreds of public oil and gas company websites that range from the clean and organized, to the loud and cluttered, to the virtually non-existent. Creating websites for public companies is one of Iradesso's core lines of business, so we pride ourselves on recognizing what makes a site effective. Here are three big picture considerations when it comes to public company websites:

1. Companies need up-to-date websites, period
In our office, a commonly heard phrase is, "Who are they? I'll look up their website." If a public company doesn't have an up-to-date website, it tells us that they aren't on the ball enough to provide information to all those investors who don't want to call the company for information and can't wait for hard copies of mailed investor materials.

Websites are the perfect way for a company to provide all its news and information in a controlled format for potential or current investors. The website also saves printing and mailing costs, as presentations, profiles and press releases can be downloaded and printed by anyone who wants them.

2. Design is important
Have you ever seen a website with blue text on a black background? Have slow-loading images ever made your computer stall? Have you seen pixilated logos that look like they were built on a Commodore 64 from the 1980s? You probably learned not to rely on that website for information. The look of a website is as important as its content in that it speaks volumes about the level of professionalism a company has. If a website gives people headaches, the latest news release will go unread, or at best be seen in a negative light.

Good design doesn't need to be overly fancy. Sites that include too many bells and whistles can be distracting and inappropriate for investors. As long as the design of a site is clean, professional and clear, investors will return again and again for information, and happily at that.

3. Organization, organization, organization!
In researching the iQ Report, we look primarily at financial statements and annual information forms. However, as secondary measures, we read all sorts of additional content from oil and gas company websites. We have found that the most crucial components of public company websites are news releases, financial statements, corporate presentations, operations overviews and a list of management and directors.

Some, but not all, of this information can be found on a third party website such as SEDAR, GlobeInvestor or Stockwatch, but most companies would rather investors come straight to the source for their information. Now, with SEDAR requiring an annoying code verification process for each visit, the company website is certainly the easiest place to look for information.

It's important not to overload website visitors with links on the index page, but it's also important not to make visitors spend too much time searching for information. A company should show their organizational skills in their website. If web pages are convoluted and difficult to navigate, then imagine what the company's operations must be like.

Investor Relations Websites Should...

While reviewing websites for iQ information, we came up with the following wish list for public company websites. Along with the big picture items, these are some of the little things we pay attention to:

• Websites should always present press releases with a date/headline format. There's nothing more frustrating than wading through 20 press releases simply titled "Press Release."

• Websites should breaking up the operations page into sub-categories when necessary, rather than having one large "Alberta" page that scrolls forever.

• Websites should not include too much detail unless companies are prepared to update it regularly. Companies often make the mistake of including too much information, but then not having the time to update it. For everybody's sake, its better to just stick to the big picture.

• Websites shouldn't make investors wait for the latest financial reports. If the latest quarterly is not posted on the company website, it causes a pain and reflects poorly on an organization.

• Websites should have updated corporate presentations and profiles on a quarterly basis at minimum and on a monthly basis if possible. The owners, or shareholders, need to know what is happening in their company.

• Websites should have a reasonable limit to file sizes while noting any larger files. Some shareholders may have slow internet connections or limited time.

• Website language should be kept simple. Some people viewing websites have a keen understanding of oil and gas and financial terminology, while others may not. Language should be easy for all readers to understand, regardless of their background.

• PDF files should open in a new window. This allows readers to continue browsing your website while the documents load and easily get back to navigating the site by closing the window.