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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (20004)	5/23/2000 4:24:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Ken, EPEG is a nice looking play on natural gas. Fantastic earnings growth. I would join you on this one, but I am a little lopsided on natural gas holdings already. RCJ's PANA, another natural gas play had a good session today. I'm still holding CHK, AE and Fidelity Natural Gas Fund. Here's a Bear Stearns analyses report on the Russell Index restructuring that I've been mentioning: <Quantitative Analysis Russell Reconstitution Since 1990, Russell indexes have been re-balanced at the end of every June. Russell takes the 3,000 largest stocks incorporated in the U.S. and ranks them by market cap, forming the Russell 3000. Using the market cap-ranked list, the largest 1,000 stocks are included in the Russell 1000, while the remaining are included in the Russell 2000. Results show capitalization-weighted outperformed deletes in each of the last five years in the month preceding the reconstitution (June). In three of the last five years,capitalization-weighted adds underperformed deletes in the month following the reconstitution (July). The S&P 600 outperformed the Russell 2000 for the last five years as well. Variables that could influence this trade include: 1) market volatility? large-cap ballast may be needed in a rocky environment; 2) Fed tightening? financials could experience pressure; 3) Tech sector overweighting? strong capital markets have produced many new candidates; 4) Inflation signs? REITS may benefit; 5) SAB-101 may affect electronics equipment manufacturers; 6) Earnings momentum? could be a useful screen. Historically, advanced purchases of the add nominees to the Russell 2000 from outside the Russell 3000 and advanced sales of the delete nominees from the Russell 2000 to outside the Russell 3000 have been shown to provide out-performance.> Sergio