The consensus appears to be that there will be a short-term price pop, but the inclusion in the S&P also means there will be increased volatility. Increased volatility implies buyers will want a greater risk premium which might be a lower p/e or, with ACAS, as higher dividend rate.
But, whenever a study of this sort takes place they present the average or median result which overlooks the obvious point that 50% of the results were better than the median and 50% were worse.
Obviously ACAS will continue to trade on fundamentals once the dust settles, so we�ll be in the upper 50%
Where do you pull this information from? Goodness.
According to a very informed friend of mine, ACAS will be the highest paying dividend stock in the entire S&P 500. In fact ACAS will beat the closest dividend by 2%. That will draw folks to this stock like flies to honey.
Folks looking for regular income will be joining us. Folks who would have never thought to buy this stock will now be exposed to it.
Kevin, I agree with you. S&P listed with that divy will not only draw the obvious index purchases, but will get the attention of all the widows n orphans, like state funded retirement account managers, etc. They really only look at mutual funds and stocks on the S&P 500. Before this listing they'd never give ACAS a 2nd glance. Now, frankly, IMHO, they'd be making a mistake to look away....