22nd Century Group Inc (XXII)

[jockinmikeg]

The portion of XXII shares owned by Russell funds is public information found in the fund section of institutional ownership. The movement of the R2K influences XXII very slightly, but does have impact, as the % of total OS is very small. The advantage of being included in the index is that it allows instits to buy into a large basket of small caps while reducing exposure to a small sample of particularly volatile holdings within the index. Over time, the individual stocks that consistently appear in the index attract the attention of fund managers and larger instits who do their DD before establishing positions - in short, large buyer exposure is the main advantage for us. Remember XXII is a first-timer in the R2K, having only been included for a short 4 months, so that process takes longer than most would expect or demand (as denoted by the feverish pitch amongst the boards lately).