In late 1982, US 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, an entertainment gaming company, reflected these high expectations.
But actual sales of the game turned out to be disappointing, and the stock price declined sharply, upsetting investors and troubling our portfolio managers.
Several portfolio managers realized that this gap between expectations 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 Research® services 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, the Grassroots Research® division was fully operational and an integrated part of our fundamental stock research platform. Since that time, the Grassroots Research® division has developed into a robust global network providing timely business insight, research and reports.