Russel 2000 reconstruction about to begin. This from Briefing.com Note the RUT performance for the year is nearly flat. I am still buying companies at 1996 pricing, when in fact some have progressed ten fold in revenue and market share since then. Stalk the bear
Notes from Briefing.com:
Some Stats From Last Year
Last year, the "bottom" stock in the Russell 2000 was Finova Group Inc., at $147 million in market
capitalization. The "highest" stock in the Russell 2000 was New York Community Bancorp, with a market
cap of $1.4 billion.
At last year's reconstruction, there were 431 stocks deleted from the list and 609 stocks added. More
stocks are added to the list at reconstruction because Russell does not replace stocks during the year
when they are removed from the list due to mergers, acquisitions, or bankruptcies.
The Russell 2000 stood at 498.39 on July 2, 2001, when the reconstruction was finalized last year. It
closed Friday at 492.73. Basically, the entire index has gone nowhere, which makes it the best performing
index of the past twelve months.
Many of the stocks which will be dropped this year have much worse returns, but overall, the Russell
2000 landscape looks virtually unchanged from last year. This makes the second straight year where the
Russell 2000 index returns have been flat.
This Year's Additions
Who are possible additions this year?
We currently estimate the "cut-off" at just about the same as last year's cutoff, at about $150 million in
market capitalization. Companies that have risen from below $150 million to higher than $225 million in
market capitalization are almost certain to be added to the index.
The Russell 2000 calculations are not entirely based on market capitalization. There are certain
restrictions which eliminate some stocks. These include stocks with multiple classes with different voting
rights, or stocks with virtually no trading volume. Only companies headquartered in the United States are
included. |
