Grassroots Research History

In late 1982, U.S. investors expected Atari’s new video game, E.T. (The Extra-Terrestrial), to be the must-have item on every child’s Holiday wish list. The rising stock price of Atari’s parent company, Warner Communications, reflected these high expectations. However, actual sales of the game were disappointing, and Warner’s stock price declined sharply, resulting in much consternation among investors – including those at RCM. Several realized that this gap between expected sales and actual sales could have been detected earlier if they had spoken directly to retailers who were selling the game, or to parents who were completing their Holiday shopping.

From that experience, the idea for Grassroots^SM Research was born. The concept was simple: If you want to know about pharmaceutical prescription trends, why not ask the doctors who do the prescribing? If you want the outlook for corporate software spending, why not talk to the IT managers who are planning their companies’ software budgets?

By 1984, Grassroots^SM Research was a fully operational department within RCM, and an integrated part of RCM’s fundamental stock research. Since that time, Grassroots^SM Research has developed a large number of confidential contacts worldwide who offer unique “ground-level” perspectives on their respective industries.

Today, through its global network of more than 300 freelance reporters and Field Force investigators , Grassroots^SM commissions interviews with consumers, distributors, doctors, IT managers, manufacturers, and yes, video-game retailers, in an effort to bring otherwise unseen business trends to light.

Grassroots^SM Research is a division of RCM . The information and opinions expressed here represent the judgment of RCM and should not be considered a recommendation to purchase or sell any particular security. RCM, and it’s affiliates, officers, employees or clients may effect or have effected transactions for their own account(s) in the securities mentioned here or in any related investments, which positions may change at any time without notice. The securities discussed do not represent all of the securities purchased, sold, or recommended for RCM clients. The information and opinions have been compiled or arrived at from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. RCM accepts no liability whatsoever for any direct or consequential loss or damage arising from your use of this information.

Research data used to generate Grassroots^SM Research recommendations is received from reporters and field force investigators who work as independent contractors for broker-dealers. Those broker-dealers supply research to RCM and certain of its affiliates that is paid for by commissions generated by orders executed on behalf of RCM's clients.