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To: bonnuss_in_austin who wrote (26591)	7/25/2000 7:38:32 PM
From: bonnuss_in_austin	Respond to of 35685

PS re JDSU tomorrow: meant to post link ... Here's a chart comparison JDSU and RAD: finance.yahoo.com Market cap/volume, etc. Who knows about this stuff <g> ?? TIA, bia ###

To: bonnuss_in_austin who wrote (26591)	7/25/2000 8:00:49 PM
From: Ex-INTCfan	Read Replies (1) \| Respond to of 35685

re: "I'm thinking of shorting JDSU. Because of this." Look at the chart for AOL at the beginning of 1999. It was added to the S&P on Jan 1 of that year. Also, consider that 50 million shares of JDSU MUST be bought. They must buy from current holders, regardless of when those holders bought the shares. I don't see what bearing the 153 shares recently purchased has on the situation. Personally, I like KG3's strategy of selling calls into the runup. If you are looking for ways to play this addition to the S&P, consider that there will be some downward pressure of other stocks in the S&P, since shares in those must be sold to purchase JDSU. Not a huge amount, but a couple of million shares for some stocks. (Can't take credit for this thought -- saw the analysis on realmoney.com) INTCfan

To: bonnuss_in_austin who wrote (26591)	7/25/2000 8:29:06 PM
From: Sully-	Read Replies (1) \| Respond to of 35685

Said 158 million (or 153...around there) have been bought; but only 50-some-odd million will be bought by MMs. Bob Pisani mentioned double counting, so as much as 1/2 of those shares may be double counted. WHY? Because they're ONLY going to buy ENOUGH to replace the current value of the Rite-Aid they hold in their funds. I believe Pisani said that due to JDSU's market cap they will garner a much larger weighting in the S&P 500. They will need to buy 53 million shares of JDSU. Since Rite Aid's market cap is so small it has an extremely small weighting in the S&P 500, so they will have to sell a portion of the rest of the S&P 500 to rebalance the index. He also said this could cause the S&P to sell off tomorrow as well. I'm pretty sure this was how Pisani discussed it. Good luck with RMBS & JDSU, Tim