BioSig Tech. (BSGM) & Electrophysiology Sector - Definitive confirmation also in the Russell 2000 - BioSig Tech. (BSGM) & Electrophysiology Sector - InvestorVillage
BioSig Tech. (BSGM) & Electrophysiology Sector
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Msg  182 of 323  at  6/10/2019 4:47:33 PM  by

Rob Cos

The following message was updated on 6/10/2019 4:48:06 PM.

Definitive confirmation also in the Russell 2000

  
 We knew it was likely but CHM confirmed microcap and Russell 3000, today definitive confirmation BSGM is in the Russell - 2000....again no netting its not coming out of any Russell ETFs and moving up as it was not on the NASDAQ last June. 
 
June 28 there will be explosive volume.....have to believe that some non ETF investors add before that. And this is assuming no news or new institutional clients and it was clear from HRS that the CEO is working on both.
 
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Again make sure you read this well written article on what happens after Russell entry...
 
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Here also is my post with the key dates and the important Barron's comments....
 
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Next Friday we should find out that BSGM made it into the Russell indices....remember my post and what Barron's said.
 
Most entries into RUSSELL 2000-3000 have a very positive net effect of large buys into RUSSELL related ETFs and funds that mirror RUSSELL less the ETF sales for micro/Smaller indices they are coming out of. For BSGM however since it was moved to NASDAQ after last June they are not in any of the smaller indices so there would be no netting just adds into the Russell 2000/3000 ETFs, funds etc
 

The 2019 Russell US Index reconstitution calendar is as follows:

  • May 10 – “rank day” – Russell US Index membership eligibility for 2019 reconstitution determined from constituent market capitalization at market close.
  • June 7 – preliminary US index add & delete lists posted to the FTSE Russell website after 6PM US eastern time.
  • June 14 & 21 – US index add & delete lists (reflecting any updates) posted to the FTSE Russell website after 6PM US eastern time.
  • June 28 – Russell Reconstitution is final after the close of the US equity markets.
  • July 1 – equity markets open with the newly reconstituted Russell US Indexes.


This year, FTSE Russell is fine tuning the US reconstitution process for even greater transparency:

  • Companies slated for addition to the indexes which have trading suspended during the 2019 reconstitution period will not be added regardless of whether trading resumes prior to June 28.
  • Companies which have had their trading suspended for 60 or more days before the start of reconstitution period on June 7 have until Friday, June 14 to resume trading or they will be removed from the indexes.
  • Qualifying equity offerings on the Monday, Tuesday or Wednesday of the final week of the Russell reconstitution period will enter the indexes at this year’s reconstitution effective Monday, July 1. Equity offerings on Thursday or Friday of that week will not be eligible to enter at reconstitution.


FTSE Russell index expertise and products are used by institutional and retail investors globally and more than $16 trillion is currently benchmarked to its indexes, including $9 trillion benchmarked to the Russell US Equity Indexes*. A full summary of planned updates along with background information on Russell Reconstitution can be found on the reconstitution home page on ftserussell.com.

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This weeks Barron's - Trading Ahead of the Latest Russell Index Rebalancing -" biggest individual stock moves will probably come from thinly traded small-caps that just made the market-cap cutoff"
 

https://www.barrons.com/articles/trading-ahead-of-the-latest-russell-index-rebalancing-51558748527

Trading Ahead of the Latest Russell Index Rebalancing·


By Nicholas JasinskiMay 24, 2019 9:42 p.m. ET

It’s a club all companies want to belong to.

One of the highest trading-volume days on U.S. stock markets each year falls in late June, when FTSE Russell rebalances its closely followed collection of U.S. equity indexes. Changes in market value and other criteria for inclusion mean that dozens of stocks are added or removed from various indexes, including the large-cap Russell 1000, the small-capRussell 2000, and the value and growth subdivisions of each.

With some $9 trillion currently benchmarked to Russell’s U.S. equity indexes, all of this has a big impact on investors’ portfolios.

Russell will release its preliminary list of new indexes on June 7, using May 10 prices to determine the constituents, which allows strategists like Jefferies’ Steven DeSanctis to calculate additions and deletions ahead of time. The actual rebalancing will take place after the market closes on Friday, June 28—also the end of the second quarter.

There’s a meaningful trading opportunity around the event, according to Goldman Sachs strategists. Looking at the Russell 1000 over the past half-decade, they found that newly added index constituents outperformed existing members by a median of 1.5 percentage points from the announcement date to the day before reconstitution, as active managers get a head start on adjusting their portfolios and buy shares.

DeSanctis calculates that more than $1.1 trillion of passive assets in ETFs and other funds are affected. To track the indexes as closely as possible, these funds generally rebalance their holdings on the day of the reconstitution, prompting the annual spike in trading volume. That has provided newly added stocks with another median half-percentage-point bump of outperformance in the past five years, according to Goldman.

This year, DeSanctis calculates that close to 200 stocks will be replaced in the Russell 1000 and 2000. Other than market-cap changes, index additions include newly listed companies like Lyft (LYFT) and Uber Technologies (UBER), which went public just in time to be eligible for Russell 1000 inclusion in 2019.

Bank of America Merrill Lynch predicts that Spotify Technology(SPOT) and Janus Henderson Group (JHG) will be added to the Russell 1000 as a result of being reclassified as U.S. companies by the FTSE Russell, while NXP Semiconductors (NXPI) falls out for the opposite reason.

A good year for tech stocks means that a number of names outgrew the Russell 2000 and will move up to the Russell 1000, including Zscaler (ZS), HubSpot (HUBS), andTrade Desk (TTD), according to DeSanctis’ data. That will drop the sector’s weighting to 13.4% of the rebalanced Russell 2000, from 15.5% currently, falling behind industrials and health care. Financials maintains the top weighting, at 17.9%.

“Given that some of the biggest changes at the sector level occurs in tech, it makes sense that it will see the greatest dollar amount of trading,” DeSanctis wrote to clients this past week. “We estimate that over $5 billion of tech could be for sale by passive investors. On the other end of the spectrum, industrials and health care could see buying of $1.9 billion and $1.2 billion, respectively.”

· .

The biggest individual stock moves will probably come from thinly traded small-caps that just made the market-cap cutoff for Russell 2000 inclusion. DeSanctis highlights additions like MVC Capital (MVC)—a $160 million business-development company—as facing significant buying pressure, thanks to its inclusion in the index. He projects that MVC could see demand for 1.6 million shares, versus an average daily volume of 13,356 shares in the past month.

Other stocks in a similar position include Value Line (VALU) and First Capital (FCAP), while Middlefield Banc (MBCN) and Associated Capital Group (AC) could face heavy selling pressure in excess of their average volume when they’re dropped from the index.

 


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