Joining the FTSE 100

[HowMuchLonger]

I believe/think a company will be joining the FTSE 100 soon. How often are these upgrades announced (monthly/quarterly), and on what day of the month. Hope to make a bit of money, but I don't want to keep my position open for too long.

Thank you.

[Horse_Apple]

http://www.ftse.com/Indices/UK_Indices/Index_Rules...

[g4ry13]

Why do you believe that? It's calculated according to market cap iirc. Are you eyeing up a certain Oil company in the 250 for an upgrade?

[HowMuchLonger]

Indeed, an oil company. Cairn entered at the same position as this company is now, I know they need to maintain there level for a while but I am getting ready.

[limpsfield]

Dragon Oil or Sibir?

[g4ry13]

limpsfield said:

Dragon Oil or Sibir?

I'd hope Dragon as I happen to be sitting on quite a few of those but I was initially thinking of Dana. But come to mention it, Dragon has the bigger market cap.

[limpsfield]

g4ry13 said:

limpsfield said:

Dragon Oil or Sibir?

I'd hope Dragon as I happen to be sitting on quite a few of those but I was initially thinking of Dana. But come to mention it, Dragon has the bigger market cap.

and your task for this weekend is do the math, as our American cousins say


Dragon Oil market cap 2.8 billion (posn. 88 on LSE)

Dana Pet market cap 1.6 billion (posn. 149 on LSE)


You have till 8:00 a.m. on Monday

No conferring and all working out must be shown.

Extra points for free money earned along the way.

[jsc15]

Is the inference here that an appearance in the ftse100 boosts a company's perceived value, over and above their normal ups and downs in share price?

[limpsfield]

jsc15 said:

Is the inference here that an appearance in the ftse100 boosts a company's perceived value, over and above their normal ups and downs in share price?

There is a school of thought that says that promotion means that certain funds have to buy in as it is FTSE and it raise the profile.

But it is a hradly a secret what is a candidate for promotion/relegation. I don't know if anyone has done a proper study of the effect of FTSE 100 promotion rather than all this nudge nudge wink wink stuff.

[HowMuchLonger]

There will be (in my mind) less volatility of the share price due to some funds having to hold all stock in the 100, and less weekly hedges. The weekly hedges in the company I follow follow the following trend (78% of the time last time I calculated) price up on monday due to hedge funds buying in, and down on friday due to the funds closing their positions.

[g4ry13]

Just for future reference...if you're betting on Dragon being in the FTSE100 in the near future, you'll be sorely disappointed.

[Horse_Apple]

jsc15 said:

Is the inference here that an appearance in the ftse100 boosts a company's perceived value, over and above their normal ups and downs in share price?

Generally, it increases the profile and liquidity and makes it easier to rais capital at a fair price so all in it is obviously a good thing.

However, there is no secret to the inclusion formula and funds are permitted to buy in in advance and also exit so as not to suffer any spikes caused on the day of inclusion, so generally there is no quick buck to be made.

[HowMuchLonger]

g4ry13 said:

Just for future reference...if you're betting on Dragon being in the FTSE100 in the near future, you'll be sorely disappointed.

When I was a child (about 7) I asked my Dad for 1000pounds to buy some dragon oil shares, they were 0.75p at the time. I will never forgive him.

[KingRichard]

HowMuchLonger said:

g4ry13 said:

Just for future reference...if you're betting on Dragon being in the FTSE100 in the near future, you'll be sorely disappointed.

When I was a child (about 7) I asked my Dad for 1000pounds to buy some dragon oil shares, they were 0.75p at the time. I will never forgive him.

You are Gordon Gecko and I claim my five pounds