Companies present their case to investors on their conference calls. Since the introduction of Reg. FD, companies are not allowed to communicate with investors via non-public or privileged-access channels. As a result, the volume of communication between companies and investors has fallen sharply. The most important forum left for most public companies to "tell their story" to investors is their quarterly conference call. As a result, conference call transcripts are the best way for investors to discover and research new stock ideas and to track the progress of companies they are already invested in.
Conference calls alert investors to key investment issues. The question and answer session at the end of every conference call is an opportunity for analysts to question a company about anything surprising, impressive or concerning.