MarketFoolery: 04.05.2011
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 5 April 2011
⏱️ 12 minutes
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Summary
Microsoft gains weight. Apple loses weight. Procter & Gamble unloads a big chip maker. And some big stocks increase their dividends.
Transcript
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| 0:00.0 | It's Tuesday April 5th and this is Market Fullery. I'm Chris Helen joining me in studio today |
| 0:07.0 | from Motley Fool Global Gaines, Tim Hanson from Income Income, from Income |
| 0:10.0 | James Early and from Motley Fool Asset Management Bill Mann, guys, good to see you as always. |
| 0:15.0 | See you, Chris. |
| 0:16.0 | We've got dividends on the rise and Pringles on the move, but we begin today with a shift in one of the big indices. |
| 0:23.4 | NASDAQ announced a rebalancing of the NASDAQ 100 index next month that will reduce |
| 0:29.8 | apples waiting in the index. |
| 0:32.2 | As a result, index funds will have to sell some of their shares of Apple. |
| 0:37.3 | Tim Hanson, I will start with you. |
| 0:38.6 | Apple currently makes up about 20% of the index. |
| 0:41.7 | The rebalancing is going to knock that down to about 12%. |
| 0:46.2 | How significant is that for Apple's stock? |
| 0:49.2 | Well, you know, it could see some selling pressure as all of index funds that track the NASDAC 100, sell the stock in order to then match the index. |
| 0:57.5 | But at the end of the day, this is really a non-event for a big well-followed company like Apple the reason is you know if it falls a little |
| 1:05.6 | bit people who are bullish on Apple shares are probably going to jump in and buy the stock. |
| 1:10.8 | Now index deletions can be interesting, or index for balancing or deletions can be interesting |
| 1:16.2 | for sort of smaller, lesser followed stocks. |
| 1:18.9 | There is an interesting event on the Chilean exchange recently where this asset management company called |
| 1:24.8 | ProVita was taken off the Chilean index and the stock went down, you know, 10 to 15 percent |
| 1:29.4 | on that news as all the Chilean index funds sold it, that's an opportunity because that's a big drop for no reason. |
| 1:34.8 | Bill what do you think? |
| 1:36.8 | You know the thing I would say about this is a this is a stock story and not a business story |
... |
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