Whilst the removal of SLR from the ASX200 would force certain...

Whilst the removal of SLR from the ASX200 would force certain funds to sell I don't necessarily think that this would drop the SP for more than a month or so.

I find it hard to believe that a large number of shareholders would see the price drop and then assume there was something wrong with the fundamentals of the company. Or am I underestimating the incompetence of most shareholders?

Furthermore, having funds on board is not always a good thing for small caps. I was amazed to see the orgy of self congratulation that occurred when Van Eck came on board. Why? My experience with Van Eck is that their presence serves to stablise a SP. This might be good for a blue chip but it isn't going to help us make any money in a small cap stock.