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Technology Stocks : Storage Computer Corp (SOS)
SOS 1.705-0.6%3:57 PM EST

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To: SuiteStock who wrote (46)8/16/1997 1:15:00 PM
From: KFBLY   of 134
 
One thing that I like about companies of this size: They are not in any kind of Index. The automatic investors (robot-heads) that run index funds don't own any of it. When the size increases to the threshold of Russell 2000 or its bretheren, indexers will start to buy in because their models tell them to. Since a significant portion of all new money going into the market is being put into Index Funds, it's logical that Exxon and IBM will get a disproportionate share of the buying. This is due only to their size and not to their worth. If SOS can keep growth on track, the leverage effect of the future index buying will create some eventual fireworks!

A good theory: "The bigger the capitalization, the dumber the investors".
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