- 12-06-12, 06:42 PM #27
what you want to do is buy the ones entering if you have an EFT. These will take a bouce up as the mutual fund HAVE to buy them to level their fund %'s. This looks like RIMM , and the others, will need to be shorted to anticipate the drop in price as they get dumped for the others within the EFT. Win win, short the drops, long on the pickups. The settle the shorts, and go long on RIMM, and any others that may tickle your fancy. Sell the pickups for a short term gain on stock price. Then after all the bounce is over, get back into the EFT.
Good Luck, as I have already made my moves.
(disclosure) I am now short on APOL, WCRX, GMCR, EA, FLEX, RIMM, NFLX, MRVL,VRSN, LRCX, XRAY
I am now Long on KRFT, REGN, LMCA, ADI, CTRX, EQIX, LBTYA, DISCA,VRSK, SBAC, WDC
- 12-06-12, 07:26 PM #28
This has relevance to you, and it's something you should want to know about/keep track of if you own RIM stock - or are planning on owning the stock.
Why do you? Let me quote from an article I read yesterday in a posting from Financial Review regarding Facebook's inclusion into the same index:
As a new member of the Nasdaq 100 index, Facebook's comeback may get a boost on Wall Street.
The closely watched index represents the 100 most valuable, non-financial stocks trading on Nasdaq. Facebook (FB) shares will be added Dec. 12.
Analysts say being in the Nasdaq 100 is a potential boon for shares of the No. 1 social-networking giant.
The Nasdaq 100 is a Who's Who of big technology companies, such as Apple (AAPL), Google (GOOG) and Microsoft (MSFT).
Big chunks of Nasdaq 100 company shares are often bought and held long term by exchange traded funds and major mutual funds that invest mostly or only in key stock indexes.
The opposite would be true for a delisted stock from the Index. It would bring in fund selling that would have a direct impact on the stock and those sellers aren't caring about the prospects for BB10. The own stocks that are listed in the Index and are not allowed to own stocks that are not. It will have an affect on price, even if it's short term. WSJ said about Infosys - the company delisted when Facebook was included said
TThough the switch doesn't happen until next Wednesday, Infosys stock fell Wednesday as investors are cautious in the near-term. They expect further selling in the stock by index funds, and other money managers who make investments based on the weight of the Nasdaq-100 index.
In fact some folks think after that - Infosys might then be a buy from what I read, but they want to wait and see what these moves mean for the stock.
Doing your homework means finding out stuff like this.
- 12-06-12, 11:32 PM #33
It's not a dead certainty that this will actually play out as Deutche Bank suggests here. If you look through market cap and EPS then RIM still looks okay next to a couple of the additions that this report proposes. Especially if we see further good news this week.
- 12-07-12, 12:54 PM #37
E.g. RIM released their last quarterly earning in September, the last NASDAQ 100 list review was in August.
There may be other stocks that are now just better than RIMM.
Being better than before is not good enough, being better than others is important.
- CrackBerry Abuser
12-15-12, 03:39 AM #40
- 361 Posts
I think the deletion announcement happened after trading hours.
Probably won't have too much impact though. The Deutsche Bank article mentioned that the deletion would result in about 6 million shares of RIMM needing to be sold. The actual NASDAQ change doesn't happen for a week, so it would be 6 million extra shares sold over 1 week, while average weekly volume is something around 165 million (and even higher recently). The effect on the share price will probably be fairly low and will be difficult to separate from other factors.
- 12-15-12, 08:51 AM #41
Deutsche Bank predicts RIMM deletion from NASDAQ 100
There could be some selling... Offset by a whole lot of buying once people hear that the release is on track for jan 30th.
Sent from my BlackBerry 9930
- 12-16-12, 01:01 AM #43
- 12-16-12, 01:07 AM #44
- 12-16-12, 07:59 AM #47
as the header of this thread suggests, the smart money was aware of this happening, yet RIMM went up.
if there is some selling pressure the trading volumes have been huge to absorb it, and the huge short position needs to get covered sooner or later,
so you got some built in buying and finally looking at FB, which got added this week, you can see there are ways to handle the
entry and exits without overly upsetting trading in those stocks.....
12-16-12, 11:24 AM #50
- 870 Posts
removal from NAZ100 explains alot of buying recent
the etf's and future contracts that hold rimm short as part of their qqq shorts or bear funds will now have to liquidate their shorts.... i think there will be a huge rally on rimm next week, its going to be amazing.
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