NEW YORK, June 12, 2006 (PRIMEZONE) -- The Independent Research Network(SM) (IRN) today announced several milestones in the growth and development of its business, including signing contracts with 30 research providers and the signing of IRN's first client contract. The IRN connects under-covered companies with multiple independent and sell-side research providers to ensure that companies have broader market awareness and that investors have access to high-quality, current research.
"We've seen tremendous enthusiasm from investors and companies alike for what we've set out to achieve through the IRN -- objective, impartial, continuous and credible coverage from independent sources," said Daniel Blank, President of the Independent Research Network. "We've been successful in accommodating the market's desire for a combination of sell-side and independent coverage and are well-positioned to cover every industry, including healthcare, consumer and technology which have demonstrated the strongest interest in obtaining the type of coverage the IRN facilitates."
Blank continued, "The market has recognized the issues surrounding under-covered companies and we've created a solution to effectively address the problem. We will continue to educate companies and the broader investment community on how the IRN works, and we're excited about continued momentum and business growth."
The IRN's accomplishments during the past year include the development of its methodology for conflict-free research, and the formation of its Research Independence Council, charged with preserving the independent nature of the IRN by ensuring the integrity and independence of the research that is created. On the provider front, IRN has successfully enlisted 30 research providers equally made up of sell-side institutions and independent firms, meeting the demands of both the investment community and companies to have a variety of coverage providers. Across the 30 providers there is a breadth of industry coverage with virtually every sector having multiple providers.
The benefits of gaining research coverage through the IRN include:
-- Access to quality equity research providers -- Researchers vetted and monitored for impartiality -- Rigorous oversight ensures objectivity and credibility -- Broad distribution and visibility -- Credibility in the market
According to publicly available data, approximately 33% of all public companies with analyst coverage have two or fewer analysts covering them and approximately 42% of all public companies have no analyst coverage. According to Reuters Estimates, the global provider of real-time forecast information, since January 2002, 703 companies have lost analyst coverage representing over 18% of the entire universe of public companies with analyst coverage.
ABOUT THE IRN
The Independent Research Network is an independent company formed by The Nasdaq Stock Market, Inc. and Reuters to help under-covered companies obtain analyst coverage. Its objective is to facilitate equity research coverage for under-covered companies, promoting a greater knowledge of the investment community's understanding of a company's fundamental prospects.