The other day I was invited to a "dog and pony show." That's what Market Professionals call a luncheon sponsored by a company that wants you to buy their stock.

All companies know how important it is to keep their shareholders happy, and what could be better then a rising stock price.

Once basic way to keep the price of a company's stock strong is to constantly recruit new buyers.  Instead of going to the public and soliciting them, the companies hire investor relations firms, who set up a tour and send out invitations to the broker/dealer community.

Most companies have well prepared presentations with charts, graphs, slides or videos; but nothing works better then the inference of "inside information" which is never overtly dispersed, but always suggested through the informality of side comments during the presentations.

Actually, just being in the presence of the President of the corporation who has a positive upbeat attitude is enough to give a broker the impression that he knows something more than the general public.

Most companies will not front the expense of the show unless they really do have something exciting to tell, so attending the luncheons are usually worth the time a broker takes out of his schedule. The only bad beat to the scenario is that you many be the last city on the tour and the stock price may have already gone higher.  If the pitch is good and the lunch even tastier, then the broker goes back to his office to call up clients, and after the expression of information, writes up "buy" tickets. Get in early and call the shareholder relations department of the stock you own and find out if they are planning a "show."  Ride the pony not the dog.

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