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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: mmeggs who wrote (36446)	7/21/1999 4:22:00 PM
From: Voltaire	Respond to of 152472

Now you have it! Voltaire

To: mmeggs who wrote (36446)	7/21/1999 4:24:00 PM
From: Wyätt Gwyön	Respond to of 152472

mmegs> Along that line from Yahoo: Index fund dispersion by: Explorer_at_large (36/M/Southwest) 27152 of 27152 Today was the reciprocal of tommorrow. What do I mean? Every S&P 400 index fund that held Qualcomm shares needed to dispose of the stock at a price as close as possible to the closing price today. Why the gamesmanship? Because index funds are judged by consultants by the amount in which their performance deviates (or disperses) from the performance of the index's constituent parts. Excess deviation is perceived very negatively, so managers are highly incented to avoid this at any cost. Hence, everyone tries to run out the door at the same time at the end of the day. Tomorrow, the big money---the S&P 500 boys will all need to buy the stock in order to prevent the very same deviation problem. To bad news is that the company is selling stock, so some of this demand will be absorbed by the offering. Still, I believe that the total S&P 500 index fund demand will be significantly greater than the offering, so the stock should have a reciprocol upward bias tomorrow. EAL