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

To: YlangYlangBreeze who wrote (11891)	7/26/2000 7:31:01 AM
From: t2	Read Replies (2) \| Respond to of 24042

Dis anyone ever answer whether the index funds have to buy more when the market cap increases due to finalization of SDLI deal? Wondering... S and P rebalances the market weightings every quarter, adjusting for the company share buybacks as well as acquisitions. As a result index funds have to increase their weightings in certains stocks and reduce in others. That is why i am not sure if the ETEK deal is even factored into this addition. I think the weighting for JDSU is based upon the March earnings report. If I am right, then there is to be a lot of buying when the September rebalancing takes place----I don't know if index funds will "manage" this buying ahead of time as they will already be aware of this information from the number of shares JDSU had to issue upon that merger. I remember that in some quarters, companies that did big deals spiked up a little when the rebalancing took place. I don't know what percentage of funds would have done this adjustment well in advance of the end of the September. Hope this helps a little.