Is Broadridge's CEO Out of the Loop?

The only update I can give you on the investor network is we’re rolling out an internal pilot for friends and family, and I’m hoping in the future to be talking more about that with a very excited tone.

That statement was made by Rich Daly, CEO of Broadridge Financial Solutions (NYSE: BR) on his company’s Q1 2009 earnings conference call on November 6.

He said that 11 days after we publicized the fact that The Investor Network was live on the web.

In fact, at the very time he uttered those words, any of the analysts on the call could have found that Broadridge was actually advertising on Google for people to join The Investor Network. (See the screenshot below)

Hardly what you would call an “internal pilot for family and friends.”

Of course, Mr. Daly not pointing analysts to www.theinvestornetwork.com has nothing at all to do with the fact that this new project has been unable to attract even 250 members yet.

Nor does it have anything to do with the fact that individuals so obviously connected to Broadridge are anonymously touting the company’s stock, something regulators don’t look upon kindly.

And it definitely has nothing to do with it being a flop that won’t fly unless Broadridge manages to somehow convince a certain regulator to force every company in America to use and pay for it.

And that could well happen, according to Daly’s comments on the prior quarter’s call (Seeking Alpha transcript).

I really hope it doesn’t because Broadridge’s investor network is a poorly conceived concept that adds no more value than can be achieved using free software that is widely available on the web. And, judging by the lack of interest thus far, no one really cares.

A CEO who directly contradicts what is plainly visible to anyone who cares to look doesn’t inspire confidence in me.  I’m no longer a shareholder.

Disclosure: no positions

Comments

[mjmac:]

Since your no longer a shareholder can we assume that we won't ever have to hear from you on BR again? That alone would have been worth the investment on BR's part.

2008 Nov 12 01:09 PM

[Lotalolly:]

You have made some relevant points in your article. Friends and family approach does not work on the internet for a mass social networking site - it's basically sink or swim! Unfortunately this site ain't swimming at the moment, because it ain't getting enough traction from the out. Ultimately Broadridge is missing the point about the internet. The thing about having a website like this is that it should provide you with reasons to come back to the site. There is not enough on this site that I can see would have me back. In fact I am alarmed to see that you need to enter your broking account login and password to get access? In the small print of the T&C you will note that Broadridge can use this to check your security holding information, but that they can also sell your data to third parties (albeit on an aggregate basis). There are plenty of other websites out there that offer far more than this one, plus you don't have to sell your gran to get a logon. The 200 or so current members is likley to be only employees at this stage - considering that there are 5000 of those, it looks like the employees aren't even that keen. The point that Broadridge has missed here is that Social networking is all about attracting the most users as possible and to give them something to have them keep coming back - they have thus far failed on both accounts!

2008 Nov 13 01:51 PM

[axiom:]

Interesting points in this article, but FirstTrade and Intel have recently adopted Investor Network to one degree or another. Is it getting more traction now? Is there something else going on? Interested in updated opinions.

Apr 21 09:27 AM