November 8, 2016
Q&A: T-Mobile’s Paellmann Rings the Reasons Stock Surveillance Helps IR
For a company like T-Mobile US, stock surveillance is a way of life, a service that has helped IR for the more than three years since the company went public on May 1, 2013. Here, vice president of IR Nils Paellmann discusses how he uses information gleaned from stock surveillance to plan better roadshows, keep the C-suite informed of stock movements and even monitor options activity for T-Mobile US.
Q. How do you use the information collected through stock surveillance to help in your role as IRO?
NP: We’ve used stock surveillance for as long as T-Mobile has been around. We use it to get indications of trends in the shareholder base, especially between filing dates. We do have the 13F filing information coming out quarterly, but to get shorter-term updates in the shareholder structure, we rely on stock surveillance. We also use it for organizing roadshows, for example, for identifying the holders in a given area where we are going to visit.
Q: Do you use stock surveillance for targeting?
NP: When we do targeting for a roadshow, we identify the current holders in an area and we use stock surveillance information for that. We use it internationally as well. We do an international roadshow at least once a year and from stock surveillance we know about some of our holders in Europe, especially in the UK.
Q: Do you use stock surveillance to present more detailed information to the CEO, CFO and the board?
NP: When there are significant changes in the shareholder base between filing dates, we would use surveillance information. We get a weekly update in the shareholder base that also goes to my boss, CFO [J Braxton Carter]. To the extent that we get questions from management on trends in the share price or changes with significant holders, we use the stock surveillance information for that, too.
Q: Leading surveillance firms now utilize quantitative analysis, artificial intelligence and machine-learning techniques to dissect things such as: forward-looking market sentiment, investor expectations, relative performance drivers, activism alerts, etc. Have you been able to leverage this kind of intelligence, and if so, do you find it useful? And if not, would you find it potentially insightful?
NP: I’d have to take a look to determine if [this kind of intelligence is] particularly helpful, but it’s certainly worth a look.
Q: If you didn’t have stock surveillance, what IR tasks wouldn’t you be able to accomplish as successfully as you do now?
NP: Without stock surveillance, we’d have even less information about changes in the shareholder base between filing dates. We get 13F filings, but they’re only four times a year and they come 45 days after the end of the quarter. We’d have less information on changes between those filing dates and, in that sense, stock surveillance is a very useful service ? I certainly wouldn’t want to give up on that.