Nasdaq announced late Friday the annual re-ranking of the Nasdaq-100 Index, and XM Satellite Radio is one of five to get cut from the list.
Aside from XM Satellite Radio Holdings INc. (XMSR), LM Ericsson Telephone Company ("ERIC"), Patterson-UTI Energy, Inc. ("PTEN"), Ross Stores Inc. ("ROST") and Sepracor Inc. ("SEPR") were also snubbed from the Nasdaq-100.
The Nasdaq-100 Index is comprised of the 100 largest non-financial stocks on the Nasdaq Stock Market.
Replace those in the index are Hologic, Inc. (HOLX), a diagnostic and medical product company; Focus Media Holding Ltd. (FMCN), a digital-media company based in China; Hansen Natural Corp. (HANS), a beverage maker; Steel Dynamics, Inc. (STLD), a steel maker; and Stericycle, Inc. (SRCL), a medical waste disposer.
The index is re-ranked each year in December. XM joined the Nasdaq-100 back in December of 2004.
Yup so begins the downward spiral of both companies that way over spent on talent and can't borrow money for much longer.
funny still saw sirius in top 100....pray for a merger kid
"the virus is spreading"
Doesn't mean anything. Have you had Hansen soda? I say it's far more delicious than XM is entertaining. Mandarin Lime soda while listening to Theme Time Radio is as close to heaven as we can hope to get.
What does O&A have to with this story.
This O&A,Howard crap is quickly ruining,this site.
This is not going to help XM's stock price. Some index funds will sell it simply because it is no longer part of that list. We'll see what happens on Monday.
Down goes XM and down goes 0.0. Bye bye bitches.
This is why XM needs the merger worse then Sirius. That is why Sirius is purchasing XM. Why does Sirius want this commercial ridden programming that is partnered with Clear Channel (the enemy)? XM needs this merger a lot worse then Sirius. That is why Sirius is taken the lead.
Nasdaq is for faggots.
the dow.........oh no
Nasdaq is for faggots.
the dow.........oh no
Nasdaq is for faggots.
the dow.........oh no
Nasdaq is for faggots.
the dow.........oh no
The index funds have already basically sold XMSR anyway, since the Nasdaq 100 is a cap-weighted index, the funds would be selling XMSR as its market cap declined relative to the other stocks in the index. As of 13 December, the QQQQ ETF which tracks the index has a weighting for XMSR of 0.25% (meaning that 400 shares of the ETF are equivalent to a single share of XMSR... with 415.2 million shares of QQQQ out there, that means that QQQQ will be selling about 1 million XMSR shares over the next week).
This is why index funds (at least the most popular varieties, most notably those that track the S&P 500 and its sub-indices) are destined to fail: they basically only buy when the price is rising and sell when the price is falling, which carries with it a certain amount of buy-high, sell-low. They're generally better than having your money in the bank or a money-market fund and offer good liquidity, but the fact is that you're not going to get rich off indexing.
The index funds will divest themselves of the last XMSR shares on December 21, as the new lineup will be in effect at the opening of the exchange on December 24. Of course, with those sales now being well anticipated, others would be free to sell their shares now, planning to buy them back in the next few weeks.
Mind you, SIRI investors shouldn't be dancing on XMSR's grave. Mel's merger idiocy has tied SIRI to this anchor, and any decline in XMSR will drag SIRI down a bit as well, as it makes the merger arbitrage (long XMSR, short SIRI) a little more profitable despite no change in the fundamentals of the play.
Perhaps they removed it from the list in anticipation of the merger?
If they kept it on the list AND they merged, they would have to re-index it again when the merger announcement comes..
Paging Boardroom Jimmy. Paging Boardroom Jimmy.