P2, <<Re: Are You Saying the Biotechs are Doing Well?>> Can you read English?
<<The index is calculated on a regularly adjusted market-weighted basis.>> First, not really, see below.
Second, the stuff below is pasted directly from the AMEX site, sorry if it formats like s**t.
At 10:47 PST I tried this:
quote.yahoo.com
and besides the company-specific CORR and BGTC huge drops, I see mostly a flat day. Is ATIS waiting for (bad?) news too?
Given the way weighting is done (see below for details), the 50% drop in CORR translates into a ~3.5% drop in the index, which is more or less what I said. I am not predicting anything re. CORR and the sector. You could be right, but I do not see a dramatic effect TODAY, AS FAR AS THE BTK COMPONENTS GO.
**** from amex site ****
Equal-Dollar Weighting
The Index is equal-dollar weighted, designed to ensure that each of its component securities is
represented in approximate equal dollar value. Equal-dollar weighting was established by designating
the number of shares of each component security that represented approximately $10,000 in market
value, based on closing prices on Oct. 18, 1991 (e.g., a stock that closed at $20 per share would be
represented in the Index by 500 shares for a total market value of $10,000). The aggregate value of
the stocks was reduced by a divisor (initially 750.1506) to establish an Index benchmark value of
200.00.
To ensure that each component stock continues to represent approximate equal market value in the
Index, adjustments are made quarterly after the close of trading on the third Friday of January, April,
July and October.
Index Components
The Biotechnology Index is composed of shares of the following issues:
ÿ
Advanced Tissue Life Sciences
(ATIS)
Genzyme Corporation
(GENZ)
ÿ
Amgen Inc.
(AMGN)
Gilead Sciences Inc.
(GILD)
ÿ
Biogen, Inc.
(BGEN)
Immune Response Corporation
(IMNR)
ÿ
Bio-Technology General Corp.
(BTGC)
Immunex Corporation
(IMNX)
ÿ
Centocor Inc.
(CNTO)
Organogenesis Inc.
(ORG)
ÿ
Cephalon, Inc.
(CEPH)
Protein Design Labs, Inc.
(PDLI)
ÿ
Chiron Corporation
(CHIR)
Vertex Pharmaceuticals, Inc.
(VRTX)
ÿ
COR Therapeutics, Inc.
(CORR) |
