Monday, June 18, 2007

Premier Exhibition Joins the Big Leagues

Premier Exhibitions To Join Russell 3000 Index & Russell Microcap Index

The information has been available since June 15, but the news release was today. PRXI has steadily marched upward since the end of May, which coincides with the Russell evaluation period. Russell prides itself on the objective measures for index membership. Also, membership is evaluated annually so stocks get to hang around for a while. To view other changes go here: Russell Reconstitution Central

In some ways this is positive reinforcement and validation of PRXI's prospects as a company. But more importantly, I look forward to all those index funds forced to buyin. The buying should be pretty violent too (if it hasn't been already), as most of them want to reduce tracking error. Makes me curious if any hedgies or traders would make plays around index changes as this creates a forced structural change in valuation, as opposed to a fundamental change.

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