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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST
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To: Rajiv who wrote (43946)7/15/2000 9:05:07 PM
From: jfs  Read Replies (1) of 45548
 
Rajiv,
Great post. I get a different conclusion, though, thinking about your very last sentences.

<Moreover S&P 500 is market-cap weighted. At the next rebalancing, COMS' weighting will get reduced which will in turn cause the index funds to unload part of their holdings.>

Won't the drop in market cap be taken care of by the Palm distribution and (presumably) sale? An index fund's COMS holding will be reduced by a factor of 5 or 6 by this alone? Am I missing something?
Regards,
John
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