Yesterday, Royale Energy issued a press release announcing "a return to profitability." I used to think that marketing was overrated. After yesterday's announcement by Royale, I realize that it's not only important what you say, but how you say it.
Royale delivered on its June 30 PR promise of delivering profit in Q2 - its first in some time. It did so in sizzling fashion - beating estimates. Yet they chose a low key mid-day announcement that barely got noticed.
Royale has demonstrated expertise in the Natural Gas field; however, it clearly does not know how to market its success. This is a reminder that small companies often have very narrow areas of expertise and often fail to capitalize on market opportunities. The market will probably take more notice, as ROYL is now on the Russell 2000, and several other experts have been bullish on the stock. Management should take every opportunity to ensure the market recognizes the value of their company.
At the end of trading, ROYL closed up 14 cents or 2.18%. A more aggressive, better timed announcement would have sent a message to everyone and it is likely the stock's price per share would have closed much higher. More importantly, it would have accelerated trading volume for the remainder of the week.
Small companies need to start thinking bigger when it comes to selling success. Royale's announcement is a true success story that warranted much better PR - along with better timing.
Disclosure: Author holds a long position in ROYL