redfaces reappear after a few months On 15/8/05, Redfaces posted...

redfaces reappear after a few months On 15/8/05, Redfaces posted the following:

"For what it's worth, I suspect that the prospect of index membership is going to keep TTS at these levels for the next three weeks (absent a broader market shock), followed by some share price appreciation in September. Index membership would trigger $110 million in buying of TTS from passive managers. . . together with an unknown amount of "follow on" buying from punters who play the share price appreciation that almost invariably accompanies index membership.

I think that index changes are announced on 3 Sept, effective 16 Sept,

I don't know how high she will go at this time, but 3.30 - 3.40 is not unlikely.

HOWEVER, well before the end of the year, share price decline will commence again. . .. . because the fundamentals say it has to.

FWIW - I didn't just post that Crikey piece a few weeks ago. . . i also wrote it"



Despite the views of a few that TTS share price was overvalued and should be around the $2.65 level, the share price has yet to fall below $3.05.

Even $3.05 was merely a few small trades.

Index funds start buying next week. I estimate 35 million shares to be held by index funds (long term holders), but ABN Amro suggested 55 million shares (mostly already bought according to ABN Amro).

Next week is the interesting week.