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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Johnson who wrote (12061)	6/12/1999 3:35:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Mark, if you wanted to get off your butt and do something, you could probably come up with a pretty good guess about how much money institutions would put into the stock if it is included in the Russell 2000. An index is generally weighted by market cap. So, you could calculate the total market cap. of the 2000 companies to be included in the Russell 2000 and see what percentage of this market cap. is represented by VLNC. This would give you a number, X. Then you could try to come up with an estimate of how much institutional money is devoted to Russell 2000 index funds. This would give you another number, Y. Multiply X times Y and you would get an estimate of how much institutional money would be buying VLNC upon listing in the Russell 2000. For example, assume the average market cap. for the 2,000 companies in the Russell 2000 is $500 million. This would mean the total market cap. of the 2000 companies in the index is 1 trillion. At about $200 million, VLNC would represent 2 tenths of 1% of the total market cap. in the index. Therefore, X would equal .0002. Then, assume there is $20 billion of institutional money in Russell 2000 index funds. Therefore, Y would equal $20 billion. Multiply X times Y and you would get $4 million of institutional money buying VLNC. Note, the above are just a WAG. I leave it to you, Mark, to get off your butt and come up with real estimates for X and Y.

To: Mark Johnson who wrote (12061)	6/12/1999 3:47:00 PM
From: Larry Brubaker	Respond to of 27311

Here's a start. The Vanguard Small Cap. index fund uses the Russell 2000 as its benchmark. Total assets of $2.8 billion.

To: Mark Johnson who wrote (12061)	6/12/1999 3:52:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Here is something else. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 11% of the total market capitalization of the Russell 3000 Index. As of the latest reconstitution, the average market capitalization was approximately $592.0 million; the median market capitalization was approximately $500.0 million. The largest company in the index had an approximate market capitalization of $1,402.7 million. This is the current info from the Russell web site, so my estimate of $500 million avg. market cap. was a little low. Therefore, my estimate of .0002 for X needs to be revised to .00017. Now we need a good estimate for Y.