For Immediate Release
Contact: Jamie Wimberly
May 18, 2007
(202) 255-2860
DEFG Unveils Major Improvements To Distributed Energy Stock Index (DESI)
Move From A Market Cap Weighted Index To A Fundamental Based Index Adds 10 Points Of Performance
Washington, DC … The Distributed Energy Financial Group LLC (DEFG, http://www.defgllc.com/), a specialized consulting and financial services firm focused on the energy technology sector, unveiled a number of improvements to the Distributed Energy Stock Index (DESI). The biggest improvement is to switch the DESI from a market cap weighting to a fundamental based index keyed off of revenue.
“From an investor perspective, the benefits of moving to a fundamental based index are an emphasis on the importance of sustained revenue growth and a reduction in index volatility by shaving speculative peaks and troughs,” stated Thomas Brunetto, DEFG Managing Partner. “This change translates to a 10-point improvement of stable performance over the past year as compared to the market cap weighted DESI.”
Other announced changes to the DESI include:
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The six DESI segments have been redefined to reflect the growing importance of end use technologies, e.g., lighting or smart appliances, and control technologies.
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Listed companies with recent IPOs can now be included in the DESI after a month of trading.
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The number of DESI companies has been increased to 42.
The DESI Index Committee has added the following new companies to the index:
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SunTech Power Holdings (STP), Renewable energy technologies segment
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US BioEnergy Corporation (USBE), Alternative fuels and fuel cells segment
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Comverge (COMV), Demand management and metering segment
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Zoltek Companies (ZOLT), Enabling and end use technologies segment
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Fuel-Tech Inc. (FTEK), Enabling and end use technologies segment
The DESI Index Committee has approved the addition of EnerNOC in the demand and metering segment thirty days after the IPO.
Beacon Corporation (BCON) and Distributed Energy Systems Corporation (DESC) have put on the watch list for possible delisting at the next meeting of the DESI Index Committee for not meeting the DESI rules.
“Since we launched the DESI in July 2005, the DESI has recorded a 46 percent gain as a revenue weighted index, outperforming other benchmark indices by a wide margin,” concluded Tom Brunetto. “We expect continued strong performance through 2007.”
DEFG is seeking partners to list the DESI as an exchange-traded fund or to create other financial products using the DESI.
DEFG © 2007. Through the issuance of this press release, DEFG is not giving investment advice or any other advice.
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