For additions we find that the stock exhibits significant increases from the announcement through the change day, and then a decline from the change day through the release-ending period when the price steadied approximately 8% above its pre-announcement price.
In an article that was posted on Browncafe that was headlined "UPS profit falls in line with forecast, company to offer 32 million" dated 7/12/02, it was stated:
"With inclusion in the S&P 500, UPS has estimated that 70 million to 100 million new shares will be needed."
UPS will be officially added to the S&P500 index after the close of the markets tomorrow, 7/19/02.
I have totalled the trading volume since the S&P announcement after the market close of 7/9/02, and have found the following:
53,700,800 total shares traded since the announcement.
If the estimate of between 70 to 100 million shares being needed is true, then tomorrow should prove to be an extremely heavy day for UPS - possibly a trading volume of 16.3 to 46.3 million shares.
Hope this is true. If so, hold on to your hats, and enjoy the ride.
Well folks, it certainly happened today! Early on we were up $1.80+, only to retreat back to being up only $.20 when I left the house at 2:30 CDT to play tennis. I was, needless to say, very disappointed.
Imagine my shock when I return home (after winning all 3 sets) to see that UPS closed up $4.95 at $67.00, on trading volume of 70,441,504.
Yesterday I suggested that everyone should hold on to their hats and enjoy the ride, with as much as 53.7 million shares to be traded. I suppose that I should have mentioned buckling your seat belt as well!
What a glorious day for UPS. Hopefully the overall market will hit bottom soon, and begin a strong, lengthy climb. Otherwise, I'm afraid that we will gradually give up much of this gain.
But for tonight, and this weekend - CONGRATULATIONS, and have a GREAT weekend!