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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: LLCoolG who wrote (2319)	10/2/1998 12:11:00 AM
From: Nikos Tsivranidis	Respond to of 4509

OK, enough of this. You will never get it because you don't want to spend the 2 minutes it takes to actually think about what people are saying. Hint: index funds do not care about fundamentals. They just invest in the index. If you are part of an index you get some of that "blind" money. Hint # 2: Index funds are very popular these days.

To: LLCoolG who wrote (2319)	10/2/1998 12:46:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 4509

Come come! Who's living in fantasy land? What percent of the S&P500 consists of PSFT? Remember, these indexes are weighted according to capitalization. The effect is negligible. The fact that PSFT rose and remained fairly steady today is reflective of the need to include PSFT in the indexes, but suppose we see a $250 MM liquidation of a position. If PSFT were an average stock that would result in a trade of roughly $500,000, or about 15,000 shares. But PSFT is in the lower end of the S&P, so I would guess that it would trigger at most a sale of around $200,000, or about 6,000 shares. Care to compare that to the average daily volume? Do you think you'd notice? TTFN, CTC