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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (11691)	7/21/2000 5:01:18 PM
From: Alastair McIntosh	Read Replies (3) \| Respond to of 24042

Rob, according to the article referenced earlier, thestreet.com index funds must buy at the close on the day the stock is added to the index. From the article: When stocks are added to the S&P 500, they almost always move sharply higher as the date of actual addition to the index approaches. It has been happening for more than a dozen years, and it's all because of the seemingly crazy way indexers invest and trade. Here's why it works: Indexers have no choice but to do with real money exactly what the index does with pretend money, and at exactly the same time. That applies to Vanguard, Barclays Global Investors(where I used to run portfolio management and trading), State Street, and all the other money managers and pension-plan sponsors who run index funds. They're all good little soldiers: when the order is given, they carry it out without question. Let's say the S&P Index Committee orders that JDS Uniphase (JDSU:Nasdaq - news) is joining the index at the close on July 31. That means that a trillion dollars worth of index funds are buying JDS Uniphase at the close on July 31, no questions asked -- and price is no object.

To: Rob S. who wrote (11691)	7/21/2000 9:04:25 PM
From: t2	Read Replies (1) \| Respond to of 24042

You need to distinguish between promotions of S and P mid cap stocks to the S and P 500 and those like JDSU which go directly to the S and P 500. It seems to make a big difference. BRCM also went right into the 500, as did yahoo, aol, vrts. Note VRTS was a special situation. The ones coming out of the midcap don't seem to make much of a move when they are added. I do think that an addition like JDSU is unprecedented and therefore very unpredictable. IMHO, you gotta load up on other optical stocks like Corning, NT as some funds are selling some of their holdings of JDSU/SDLI. You can bet they are looking for some alternatives in this high growth area. IMHO, it is no coincidence that GLW and NT were also up today.

To: Rob S. who wrote (11691)	7/21/2000 11:09:49 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 24042

Rob we went through this on the yhoo thread when it was added. Others confirmed this with yhoo. I think it is roughly two weeks, but one of the articles posted here quoted a broker saying it is five market days. So give or take... I had bought some yhoo on a lark thinking the christmas season would be good for yhoo. Two days later SP announced it would be added. I could not believe my dumb luck. <g> No such luck with JDS, although I did buy today at $133. I had a limit order all day yesterday at 119. Was not able to check the price more than a couple of times yesterday, otherwise I would have bought it at market. Victor