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To: marc chatman who wrote (45985)	6/7/1999 12:06:00 PM
From: Heretic	Respond to of 95453

RIG is a component of the S&P 400 Midcap Index. I believe some on this board have speculated that the Caymans move will cause them to be dropped from the index. According to IR, this is not the case and RIG will remain in the index. Does anyone have definitive information on this?

To: marc chatman who wrote (45985)	6/8/1999 1:19:00 AM
From: upanddown	Respond to of 95453

Marc Re RIG and "our expectation is that we will, over time, achieve a reduction of 10 to 20 percentage points in our effective rate." If they do reduce taxes by that amount, then it could have a significant effect on earnings. If they halve their effective tax rate to 15% and it had been in effect for Q1 1999, it would have increased earnings by 20% from .85 to 1.02. The Caymans sure don't look like it should cause such a severe sell-off unless the forced selling was very high. Voluntary selling because of the Caymans seems dumb and short-sighted. John