To-ga! To-ga! To-ga!
Roth Capital Partners LLC’s yearly stock conference, known as much for its afterhours entertainment as for presenting companies,is set to treat investors and analysts to an “Animal House”-style party.
The bash is complete with a performance by Otis Day, known for his singing of “Shout!” in the frat romp classic.
And for the younger set,a “Moulin Rouge”-themed event with rapper Ludacris.
Now, down to business.
The conference, set for Feb. 19, is expected to feature 300 companies, the most yet. Most will present to investors in hopes of attracting more attention to their stocks.
The event draws small public companies from across the country. The average market value of presenting companies is about $350 million, according to Newport Beach-based Roth Capital.
Each gives a 25-minute presentation to investors and analysts during the four-day conference. Investors then can schedule one-on-one meetings with executives.
“The highlight is finding that new, undiscovered company,” said Rusty Hoss, director of research at Roth. “That’s what we try to do.”
Some 3,000 people, a record for Roth, are expected at The Ritz-Carlton, Laguna Niguel.
About 2,800 people came last year, according to spokeswoman Nevena Orbach.
This year, a day was added for an additional 90 presenting companies.
Companies
Companies come from the technology, consumer products, healthcare, apparel, restaurant and financial sectors.
Lake Forest-based medical device maker I-Flow Corp. plans to present for the fourth year, spokesman Orlando Rodrigues said.
“A lot of investors come here looking for ideas, or to refresh their thinking about certain industries,” Rodrigues said. “This year we expect some positive things to come out of it.”
Veterans such as I-Flow aren’t necessarily “pitching” investors, Rodrigues said, but rather updating them on news and performance.
“Everything that we talk about is public knowledge, but it gives them the chance to hear it directly from company officials,” Rodrigues said. “We are looking to educate the investors and have them ask questions.”
The conference draws money managers seeking better returns than the market average, Hoss said.
“You are seeing more and more hedge funds and institutional money managers participating,” he said.
The conference is set to include panel talks about stock option backdating and investing in China.
Another topic: private investment in public equity deals, known as PIPEs.
The deals, which attract hedge funds and other investors, have been a popular way for smaller public companies to raise money without doing a big secondary stock sale. But they’ve started to make regulators uneasy.
Years Past
Entertainment always has been a big part of the conference. Last year’s show had Snoop Dogg and The Pussycat Dolls. Black Eyed Peas played in 2005.
So do straight-laced money managers party alongside their prospective investments?
Not in I-Flow’s case.
“That’s not one of the things we partake in,” Rodrigues said.
A handful of other Orange County companies are slated to present.
Bigger names include Newport Beach-based chipmaker Conexant Systems Inc., Huntington Beach-based BJ’s Restaurants Inc., Foothill Ranch-based retailer Wet Seal Inc. and Santa Ana-based Fuel Systems Solutions Inc., a maker of alternative fuel engine parts.
