what are the OKN followers thoughts on removal from S&P/ASX 300 Index – March 16, 2012
A commonly held view is that changes to an index tend to have a short term impact on a company’s share price, and that it’s usually only a matter of weeks before gains or losses are either fully or partially reversed.
From what I understand and have researched the effect on SP is most pronounced in the first month after announcement. This period spans the two weeks before the changes take effect and two weeks after- a time when most adjustments can be expected to take place. Once rebalancing has taken place in general stocks revert to trading on their fundamentals.... this is a short term trading opportunity
Will OKN test its lows of $1.07 or possible $1 over the next few weeks during this rebalance? and is it a good buying opporunity?
I do not HOLD any OKN but interested in acquiring... with removal from S&P/ASX 300 Index soon this stock may fall off the radar of many institutional investors.
look forward to receiving other posters thoughts.cheers
OKN Price at posting:
$1.16 Sentiment: None Disclosure: Not Held
