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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: schzammm who wrote (22086)9/16/2005 3:25:32 PM
From: Bob Rudd  Read Replies (3) | Respond to of 78986
 
I'm surprised WMT hasn't dropped further. Based on this excerpt, "The retailer will fall to 1 percent of the index's value from 1.3 percent, according to bear stearns, and the resulting outflows of $3.5 billion will be the highest for any s&p 500 company" I calculated 79.4mm shares should change hands today[3.5B/44.1]. So far, @3:22et ~33mm have, leaving 46mm to transact. There's probably something I'm missing related to the fact that the big guys have known this was coming for quite awhile and the shares have largely come to discount the rebalance. The indexers have developed strategies that I don't understand to prevent a huge one day hit.