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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: Vitalsigns who wrote (21455)	9/15/1999 10:56:00 AM
From: Cameron	Read Replies (1) \| Respond to of 62348

Vital - <<Aty still in dump mode, more bad news??? >> The TSE index funds have to modify the weights of their holdings to reflect the market cap of each member of the index if they are going to accurately reflect the index. If the price drops precipitiously, they have to dump to maintain the correct weighting... which simply adds fuel to the fire and leads to a self fulfilling prophecy. When ATY was included it looked to me at the time like it drove about a $7.00 price increase... (just to highlight the potential impact). There is clearly still some dumping going on but at this point it seems it is more in line with nervous retail investors rather than the index funds.... the number of REALLY large blocks seems to have greatly dropped off. There was a positive ATY article this AM in the Globe which may help restore some sanity... it contrasted ATY's earnings multiple (14x) vs. Nvida (29x) and 3dFx (103x). The interesting thing is... if the price starts to pick up, the funds will have to reload and the feedback impact of this will be seen in the opposite direction and probably just as quickly. Time will tell. At least it makes for some excitement!!