NEW YORK, Feb. 9 /PRNewswire/ -- Tessera Technologies Inc. (Nasdaq: TSRA) will replace Financial Federal Corp. (NYSE: FIF) in the S&P SmallCap 600 index after the close of trading on Thursday, February 18. Financial Federal is being acquired by S&P 500 constituent People's United Financial Inc. (Nasdaq: PBCT) in a deal expected to close on or about that date, pending final approvals.
Standard and Poor's will monitor this transaction, and post any relevant updates on its website: www.standardandpoors.com.
Tessera Technologies develops and licenses miniaturization technologies for the electronics industry. Headquartered in San Jose, CA, the company will be added to the S&P SmallCap 600 GICS (Global Industry Classification Standard) Semiconductor Equipment Sub-Industry index.
AH prices indicate that index funds will be buying tomorrow. Wonder why the charts didn't predict this?
That's too bad that TSRA won't be officially added to the index until the 18th....it'll give the shorts plenty of time to exit their positions instead of instantly having to cover.....I still expect a nice pop though, especially if individuals play hardball and don't sell out on the first big spike.
With all due respect NJ this has been in a down trend for 3 out of 4 months. I appreciate a bullish sentiment but all the momentum appears to be dead in TSRA for the foreseeable future. Perhaps management will learn how to better forecast their business and earnings and then things will turn around. Todays news is no game changer, although its certainly positive. Good for a trade, that may be it for a while.
TSRA will officially be added to the S&P 600 Small Cap Index after the close on Thursday Feb 18th....over a week away. Between the shorts exiting, the index oriented funds forced to buy, and the fact that Tessera has the wireless manufacturers in the 337-630 case by the balls....I think we see a steady rise over the next few weeks.
TSRA, as you mentioned for the next couple of days, will see buying from the index managers. Maybe, an upmove no more than a couple of points, at most to <20 Then back to where it was.
TSRA peaked in 10/09; the downmove beta is always greater in a down market; while in higher up markets, the upmove beta move is always smaller in a higher market, like today. For example, today, TSRA only closed up 16 cents (less than 1%), while the general market up more than 1.20%.
Not a good indicator for the next several months or longer.
Then the surpise comes - either a spike up, or spike down for 3 or more points on huge volume.
This pattern going to repeat the next 3-4 years? 32 is the peak price TSRA will be measured against. Always, the earnings surprise will drive the TSRA stock - the shorts either win or lose driving the TSRA lower or higher.
Currently, the shorts in the driver seat.
Anyone see the charts another way?
Aren't the shorts going to get squeezed because funds that mimic the SC 600 index are going to be forced to buy shares? There's only about 3.1 million shares not in the hands of insiders or institutions already, and 1.9 million shares are short. If no one sells out, the squeeze could be huge....