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

To: Alastair McIntosh who wrote (11693)	7/21/2000 5:16:45 PM
From: TigerPaw	Read Replies (2) \| Respond to of 24042

index funds and at exactly the same time. I don't believe this to be strickly true. Large families of funds which also include an index fund can transfer the stock from one family member to another (or from company owned portfolios). They are in effect borrowing the shares from another part of their company. The transaction is then reconciled by whatever internal procedures the company has at a later date. The purchase does not have to be made on the open market. TP

To: Alastair McIntosh who wrote (11693)	7/21/2000 11:40:06 PM
From: Warren Gates	Read Replies (1) \| Respond to of 24042

TIME TO UPDATE THE STREET.COM NUMBERS: old: 60 billion market cap = .47% of S&P = $4.7 billion worth of JDSU to be bought next Wednesday new: 126 billion market cap (938 million shares JDSU+ETEK X $135 per share) = .98% of S&P = $9.8 billion worth of JDSU to be bought = 72 million shares Of course, the funds have already got some of their brokers scooping up shares. No rules against these especially since this is the biggest S&P addition ever. The brokers are taking the risk though with 3 more days to go since technically they still own it. We've averaged 70 million in the past 2 days. Since Nasdaq double counts, 70 million have been bought so far. No one knows whether these are daytraders, arbs, shorts, funds but i would assume some of these buys are already being committed to the S&P funds. It's ridiculous to think we'll have 100+ million volume on the last hour of Wednesday. 3 more days to go. At this pace, if we may be at $150 on Wednesday.

To: Alastair McIntosh who wrote (11693)	7/22/2000 12:55:02 AM
From: Rob S.	Respond to of 24042

I think the article is "mostly right". My understanding (from my accountant) is that the index funds must balance their fund by the close of the market on the day of the listing (Wednesday). That does not mean that they have to wait until Wednesday to make the changes - that would be kinda stupid if you ask me - forcing them to buy in that short of a period. My accountant has studied this pretty thoroughly as he trades it. Apparently many funds wait until the last minute to do the final balancing and that often leads to a pop up in the stock during the last couple hours of trading. Rather than try to understand whatever rules there may be in perfect detail, I find it better to study the charts of companies that have been added. I look at adding of stocks to the S&P as a "trading event" that has a high degree of repeatability.