genius

who is the genious or group of geniouses that configure the s&pasx indices?

Fair dinkum have a look at the companies exiting the all ordinaries ( there are 38 of them). Some like perhaps AGX and NAL - two bios I own - probably shouldn't have been in there when they were and probably shouldn't be kicked out when they 'are'. CLO has been dumped by silly insto selling and out pops a smartie in the form of Challenger and mops up the scrip (backed by Packer btw so it's not your usual invest only opm- "other peoples money"). DRA same thing and we saw what happenned there...probably overseas buyers ready and willing to mop up the silly insto selling.

The main reason NAL has suffered price weakness in 2006 is because the funds management crew are offloading this as well.
With the substantial drop in the shareprice of NAL over the last couple of years it seemed as though the s'price was headed for some gains in 2006... The market cap. compared to similar bios both here and in overseas markets was reasonable and after US$10m was raised end of last year cash needs have been met for at least 18 mnths ...

Every year you see dud stocks that fundies apparantly are compelled to buy that are kicked out because they've gone no-where s'price wise for say a year or two....The inverse is true and perhaps I should change the order of this paragraph, but you know what I mean- when a shareprice is being supported and money flows into a stock the s&p geniouses decide it should be part of a group of stocks that super funds need to buy and these other geniouses put peoples retirement savings into these stocks.

I wonder if it was only their money would they buy overpriced stock on companies that essentially haven't developed sustainable revenues and a secure maintainable business. It actually creates a pretty negative sentiment on these early stage companies when they are pumped and slowly and eventually dumped over a two or three year period. It bloody helps the hedge funds short the crap out of 'em too when they are in these indices. So maybe they can't short them any more after next week. Does anyone know if you can still short a stock for a period after it leaves the indices???

Any way theres my whinge back to trading now.