Will These Enter Russell 2000?

Mon, 08 Jun 2009 10:24:25 +0000

This article was in the follow-up section of this week’s Barron’s by Bill Alpert. The table shows some unusual trading patterns on “snapshot day” for the Russell rebalancing, May 29th.

Co. / Ticker	Mkt Cap 20 May	$ Trade Vol 29 May / 15 day Average
Uranium Energy / UEC	109	5
First Cal Fin Gp / FCAL	98	5
Reading Intl / RDI	91	4
Delcath Systems / DCTH	87	5
Overhill Farms / OF	86	2
Bar Harbor Banks / BHB	80	3
DDI Corp / DDIC	79	3
Ocean Pwr Tech / OPTT	74	7
Wave Systems / WAVX	74	4

Some of the stocks increased their market caps to be in contention and their per share price went over $1 which is necessary to get into the index. WAVX went from $0.89 to $1.12 HEB went from $0.53 to $1.69 and a market cap of $43 million to $143 million on trading all of the month of May.

Russell Rebalance Trade Pairs

Wed, 27 May 2009 02:37:50 +0000

I ordered the list of candidates for inclusion in the Russell 2000 in Russell Rebalance Trade by market cap. Then I looked for a stock to pair it with that is still in the Russell 2000 now, but that is likely to get kicked out because its market cap has dropped.

This is what I have come up with so far.

Candidate for Inclusion	Candidate for Expulsion
RXI Pharma / RXII	TRGT
Arctic Cat / ACAT	NLS??
BonTon Stores / BONT	CACH
Omega Nav. / ONAV	TRMA

Still have to compare betas to know how much of each candidate for inclusion to buy and how much of each candidate for expulsion to sell.

Trade Naked » Market Cap

Will These Enter Russell 2000?

Russell Rebalance Trade Pairs