Down to $15.00 at the opening already...could be an interesting day for the punters today
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Down to $15.00 at the opening already...could be an interesting day for the punters today
Everyone should go back 6 months to when XRO was included in the MSCI World Index. Have a look at the vol traded that day and approx 1 week leading up to it. That is the amount of selling that will come when XRO falls out of the MSCI World as its market cap is no longer large enough to keep it there. If you wanted to buy, I would highly reccomend waiting one month until the MSCI rebalance and pick up stock on that day. It will undoubtdely put short term price pressure on XRO, enabling lower prices.
Can't beat the economics of supply and demand and I'll eagerly be awaiting that day.
The volume when of XRO shares at the last rebalance was 7m shares, a crude proxy for the amount of shares that will need to be sold by index tracking funds etc.
Seems some of the punters who had shares locked up in Escrow are none too pleased with the lack of meaningful progress in the States. What other conclusion could be drawn for yesterday and today's dramatic SP declines...
Intel - Excellent point - When is D Day for the MSCI rebalance ?
MSCI Announces the Next Four Index Reviews Dates
Geneva –August 13, 2014 – MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support
tools worldwide, including indexes, portfolio risk and performance analytics and ESG data and research,
announced today the announcement and effective dates of the four upcoming regular Index Reviews.
These dates are:
November 2014 Semi-Annual Index Review:
oAnnouncement date: November 6, 2014
oEffective date: November 26, 2014(*)
When XRO was added to the MSCI index, and more recently when LNG was added to the ASX200/ASX300 I always remind myself of the weird and wonderful world of index inclusions.
XRO's price rises leading up to the inclusion could be attributable to the hyped up idea of economics of supply and demand. It fell flat on its behind afterwards though didn't it, as with LNG.
There are plenty of examples where being kicked off the index ends up in a price increase. I can't say for certain why that is, but it is just something I noted.
Nothing is a sure thing I guess :D:D:D:D:D:D:D
Bounce time.
#hatersgonhate :D