Does a Catholic bear shit on the pope? Well, I guess I'm not sure about that, probably not, but yes, this will affect the share price.
The fact that this was going to happen is a big part of why the price has been suppressed. The institutions are now obliged to stock up. They knew this was going to happen so they were stocking up in advance (makes much more sense to suppress the price and accumulate early rather than wait and allow a massive, desperate buy up, forcing prices to spike, buying at the highs then allowing an inevitable drop when buying slows, greatly disappointing their clients and making themselves look bad.
This way, they accumulate as low as possible, and once loaded up they actually want the price to increase to make their bottom line look good. Their active attempts to suppress the price will end because they have gone from buyers to holders.
This very much lies in to all my recent raving about how happy I was about the low prices this week; I may have been a holder but like the institutions, I could accumulate more. Even if my own numbers are insignificant to the market and relevant only me, I can be playing the same game as the institutions, simply taking advantage of the opportunities they are creating for themselves. As long as I am not intending to sell in a hurry, low prices are just an opportunity.
As well as the above, being in the index gives us prestige and exposure. It helps our image, which is particularly beneficial in a security company.
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