Russell index based funds must reallocate annually. MEA is getting removed from Russell 2000 due to the drop in market cap. The initial list came out on the 14th with an update on the 21st. It becomes official at the end of day this Friday, the 28th.
Look for a downward spike at the end of the day this Friday. Obviously, sellers were anticipating this happening and have been selling since early this month. Would not be surprised to see stock drop below $1.10 with at least a couple of million shares being dumped by these funds.
Do some research at the Russell website if you want to know more. I sold URZ as soon as I caught wind of their possible removal. Sold at $1.32 area and it is down to $1.14 right now. URG is getting added and has moved up significantly in last month.
I would not be a buyer today and would wait for this downward pressure to work itself out. Could last into July before some kind of recovery. The bad news is that those funds will no longer be supporting MEA or URZ as well as many others.
Any regular here is welcome to repost this as a new thread.
Still with you Tommie. Just like MTG last year, I bought in the 2's and it immediately dropped to seventy cents. This one will pop as soon as the weak have been shaken out.
Sentiment: Strong Buy