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Bullboard - Stock Discussion Forum L&L Energy, Inc. LLEN

"L & L Energy Inc is currently engaged in the business of coal mining, coal consolidation, and wholesaling in the People's Republic of China and its operations are conducted in the coal-rich Yunnan Province in Southwest China."

OTCPK:LLEN - Post Discussion

L&L Energy, Inc. > Russell Index-Rebalancing
View:
Post by Tjpsimone on Jun 15, 2013 3:16pm

Russell Index-Rebalancing

Few Points:

There are many funds that also are "Contra Russell"- that is they short the Russell Index. In order to mirror that, short interest will go up quite substantially. Example: BWEN was removed from Russell Indexes last June...short interest fell from 7.5M to 1.29 M shares. With markets extending, the Russell Indexes currently are currently short quite high right now. Go to NASDAQ.com, check out short interest (for BWEN, there was 1-10 Reverse Split)

The rebalancing of the Russell from an institutional stand point does not affect the markets. Any price increase in the stocks entering the Russell Indexes is based greater on Retail Investors Speculation, than institutional investing. On June 28, right after the market close, Market Makers will make book entries to transfer shares to appropriate Institutions, at the closing prices on that day. This keeps markets fair. Watch the volumes that day, usually completed by 4:10 P.M.

It still will come down to stock performance, and news. Where it will affect LLEN is on non-news days. LLEN will trade more in line with markets; on down days (when no news), LLEN should trade in general direction of market, same on up days; it will lower the volatility, and BETA.

Comment by jdl51 on Jun 16, 2013 10:33am
Looking at LLEN last year when they were deleted from the Russell 3000 on June 22, the short interest went from 2.9 million to 1.5 million the following week.  It was close to their multi year lows at that time as well, 1.67 two weeks after deletion vs. 1.38 four weeks previous.  Price dropped 10% after deletion even with the nearly 50% reduction in short interest.  Looks like ...more  
Comment by farstar on Jun 17, 2013 1:19pm
TJ So is what has happened today a mix of the Contra-Russell and the Contra-LLEN ?   Good grief, would have been nice if LLEN could have issued some SUBSTANTIAL NEWS along with the Russell Global & 3000 today.  I left this morning to get the oil changed on my car and we were up around 10%.  Just got home and were back to even!  Oh well the day is not over and still ...more  
Comment by brotherM1 on Jun 18, 2013 9:20am
TJ this interesting:  "On June 28, right after the market close, Market Makers will make book entries to transfer shares to appropriate Institutions, at the closing prices on that day."                                  ...more  
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