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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Voltaire who wrote (382)	12/30/1998 6:45:00 PM
From: Voltaire	Respond to of 41369

I don't think that's a good idea. We need all the information, positive as well as negative. Turning a thread into a cheer-leading section is dangerous. Chuzz - Good post. Voltaire

To: Voltaire who wrote (382)	1/1/1999 2:03:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 41369

Voltaire, everybody knew that there would have to be a spike in the price toward the close of Thursday's session because index funds must buy then. They have no option. They must exactly mirror the S&P500, and price is not an issues. Why do you have such a hard time understanding that. The fact that funds must buy creates demand which pushes the stock up. This happens to virtually all stocks when they are added to a major index. This information has been reported repeatedly in the financial press. What makes AOL unique is that it is probably the most volatile stock ever to be added to the index. I have posted Cosmo a detailed discussion of his comments which I believe refutes his position. You may ask him for it if you wish. I have made much of that information available to you previously. CTC

To: Voltaire who wrote (382)	1/1/1999 2:21:00 PM
From: Cosmo Daisey	Read Replies (2) \| Respond to of 41369

Voltaire, The index funds need to return the results of the index but they don't have to hold all the stocks in the index or the exact percent that makes up the index. Some of the S&P 500 stocks are doing poorly and the funds lighten up on those and more heavily weight the momentum stocks. If they guarantee a payout equal to the index performance and their performance matches it exactly then there isn't any way to cover overhead. The funds may in fact hold a higher percent of AOL then the S&P weighting. The 33 million share figure that is being talked about is the S&P weighting figure. The funds may buy less if they feel that is a better position. If the S&P gains 22 percent and they make 45 percent they still pay 22 percent and keep the rest. The reason for the AOL buying is the stock is a mover and the funds are too cautious not to hold the stock. cdaiseyPhD@heliopause.com