Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: At_The_Ask who wrote (46669)	8/16/2003 7:51:53 AM
From: James F. Hopkins	Read Replies (2) \| Respond to of 52237

More than anything else it's the Monster Cap (275.5Bil ) piece of crap MSFT..& it keeps flooding the market with shares and it holds such a big percentage of the S&P and NDX..as well as being in the DOW..it has a PE of 27 and PS of 8.65... and if you take it out of the S&P, then the S&Ps average PE would drop to about 15.. ---- IT's the #1 problem with letting a big bloated pig dominate a Cap weighted index; The index funds are forced to buy her as money flows in...no matter what. And to get MSFTs PE down the whole S&P index has to suffer... IT's also a big part of why the Midcap 400 has done so much better than the S&P during the bear market..( there is a limit on market cap ) ---- During the Bubble days when the index funds bought they had to buy more and more of the BIG caps..That even now after 3 years of bear market The TOP 10 stocks in the S&P 500 has 23.32% of the index fund and program buying action.. While the TOP 10 stocks in the S&P 400 only has 8.30% of it's index. The shear weight at the top makes the S&P in spite of her 500 stocks almost like some top heavy specialty fund, the NDX is worse.. The RUB is; a new bull can't really emerge ; get in gear ( and stay in gear ) until those FAT PIGS start going up faster than the rest. Jim