Bernard's Paper Trades

[Bernard Ng]

A test on Annual Re-ranking of the NASDAQ-100 Index

Assume we will get the opening print of these stocks on Monday, 13th, and we will get the closing print of Friday, 17th.

http://finance.yahoo.com/q/cq?s=CEPH%2c+CPWR%2c+FHCC%2c+GNTX%2c+HSIC%2c+NVDA%2c+PTEN%2c+RYAAY%2c+XMS...

As of Friday, 10th
Short:
CEPH Dec-10 47.25 0.42 -0.88% 516,734
CPWR Dec-10 5.61 0.05 -0.88% 1,599,364
FHCC Dec-10 18.19 0.07 0.39% 1,158,658
GNTX Dec-10 33.6 0.2 -0.59% 727,182
HSIC Dec-10 68.91 0.3 -0.43% 417,298
NVDA Dec-10 23.31 0.44 1.92% 5,445,378
PTEN Dec-10 18.7 0.14 -0.74% 1,858,521
RYAAY Dec-10 40.49 0.35 -0.86% 367,319

Long:
XMSR Dec-10 38.64 0.521 1.37% 2,707,055
ADSK Dec-10 66.31 1.06 1.62% 1,272,213
LBTYA Dec-10 44.85 0.15 0.34% 582,475
NTLI Dec-10 70.14 1.34 1.95% 1,055,093
MCIP Dec-10 19 0 0.00% 4,574,964
WYNN Dec-10 64.1 2.7 4.40% 2,110,425
ERICY Dec-10 31.81 0.14 -0.44% 1,928,679
SIRI Dec-10 7.59 0.42 5.86% 104,483,072




NASDAQ Announces the Annual Re-ranking of the NASDAQ-100 Index
December 10, 2004 6:30:00 PM ET


NEW YORK, Dec. 10 /PRNewswire-FirstCall/ -- The Nasdaq Stock Market, Inc. (NASDAQ)(OTC Bulletin Board: NDAQ) announced today the annual re-ranking of the NASDAQ-100 Index(R), effective with the market open on Monday, December 20, 2004.

"The NASDAQ-100 Index is a transparent and objective index whose members are ultimately decided by investors and not by a committee," said John L. Jacobs, chief executive officer of Nasdaq Financial Products Services, Inc. This re-ranking will ensure that one of the world's most widely followed barometers of market activity will continue to be comprised of companies that represent a diverse range of industries."

The following 8 issues will be added to the NASDAQ-100 Index: XM Satellite Radio Holdings Inc. XMSR, Autodesk, Inc. ADSK, Liberty Media International, Inc. LBTYA, NTL Incorporated NTLI, MCI, Inc. MCIP, Wynn Resorts, Limited WYNN, LM Ericsson Telephone Company ERICY, and Sirius Satellite Radio Inc. SIRI.

The NASDAQ-100 Index is composed of the 100 largest non-financial stocks on the NASDAQ Stock Market(R) and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index(R), which is comprised of the 100 largest financial stocks on NASDAQ(R). These indices were originally designed to segment NASDAQ into two major industry groups to support media coverage and to act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.

On a cumulative basis, the NASDAQ-100 Index has risen over 1157% since inception, and it has outperformed several major domestic and international stock indices for the ten-year period ended November 30, 2004, although past performance is not indicative of future performance. For the most recent one and five-year periods ended November 30, 2004, the Index cumulative return was 10% and 47% respectively.

Shares of each company in the Index are included in the NASDAQ-100 Index Tracking Stock(SM) (QQQ(R)) QQQQ, which is an exchange-traded fund (ETF) that trades like a stock. It is the world's most actively traded ETF. It is also the most actively traded listed equity security in the U.S. QQQ represents ownership in the NASDAQ-100 Trust(SM). The Trust holds a portfolio of equity securities that comprise the NASDAQ-100 Index and aims to provide investment results that, before expenses, generally correspond with the NASDAQ-100 Index performance. Since its inception in March 1999, the Trust's total assets have grown to over $23 billion.

The NASDAQ-100 European Tracker Fund(SM) (EQQQ(SM)) is listed on Borsa Italiana and SWX Swiss Exchange and is designed to closely follow the NASDAQ- 100 Index. EQQQ provides European investors with low cost access to the entire range of companies in the NASDAQ-100 Index in European hours, on European markets. Since its inception in November 2002, the Fund's total assets have grown to over $ 142 million. EQQQ is not available to U.S. investors.

There are also 21 domestic mutual funds and 8 international funds linked to the NASDAQ-100 Index. For more information about the NASDAQ-100 Index, including eligibility criteria, visit http://www.nasdaq-100.com.

As a result of the re-ranking of the NASDAQ-100 Index, the following 8 companies will be removed: Cephalon, Inc. CEPH, Compuware Corporation CPWR, First Health Group Corp. FHCC, Gentex Corporation GNTX, Henry Schein, Inc. HSIC, NVIDIA Corporation NVDA, Patterson-UTI Energy, Inc. PTEN and, Ryanair Holdings plc RYAAY.

NASDAQ is the largest U.S. electronic stock market. With approximately 3,300 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. For more information about NASDAQ, visit the NASDAQ Web site at http://www.nasdaq.com or the NASDAQ Newsroom at http://www.nasdaq.com/newsroom/.

To learn more about the criteria for inclusion to the NASDAQ-100, visit http://dynamic.nasdaq.com/dynamic/nasdaq100_activity.stm

Notes to editors:

The Trustee for the NASDAQ-100 Trust is required to adjust the composition of the Trust within three business days of the effective date of a change to the composition of the NASDAQ-100 Index.

The NASDAQ-100 Index Tracking Stock is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. An investor cannot invest directly in the Index. Index performance does not reflect the fees and expenses associated with investing in the NASDAQ-100 Index Tracking Stock.

An investor should carefully consider investment objectives, risks charges and expenses before investing. For this and more complete information about NASDAQ-100 Index Tracking Stock(SM), a unit investment trust, obtain a prospectus from your broker, or call [phone] or visit our Web site at http://www.nasdaq-100.com. Read it carefully before you invest.

While there is no assurance that the performance of the NASDAQ-100 Index can be fully matched, the NASDAQ-100 Index Tracking Stock is designed to provide investment results that generally correspond to the performance of the NASDAQ-100 Index before fees, expenses, and taxes. Past performance is not indicative of future performance.

ALPS Distributors, Inc., a registered broker-dealer, is distributor for the Trust.

The sponsor of the NASDAQ-100 Trust, a unit investment trust, is NASDAQ Financial Products Services, Inc. ("NFPS"), a wholly owned subsidiary of The Nasdaq Stock Market, Inc. ("NASDAQ," and collectively with its affiliates except NFPS, the "Corporations"). Investment returns and principal value will fluctuate so that an investor's shares, when redeemed or sold, may be worth more or less than the original cost.

"NASDAQ" and related marks are trademarks or service marks of NASDAQ and have been licensed for use for certain purposes by NFPS. The NASDAQ-100 Index is comprised and calculated by NASDAQ without regard to the NASDAQ-100 Index Tracking Stock. The Corporations make no warranty, express or implied, and bear no liability with respect to NASDAQ-100 Index Tracking Stock. The Corporations and NFPS make no warranty, express or implied, and bear no liability with respect to the NASDAQ-100 Index, its use or any data included therein. The Corporations do not guarantee the accuracy or the completeness of the Index, or any data used to calculate the index, or determine the index components.

Company briefs:

The following are brief descriptions (source: Bloomberg) of the 8 companies added to the NASDAQ-100 Index in descending order based on market capitalization as calculated in the NASDAQ-100 Index annual re-ranking review. Securities listed on the NASDAQ Stock Market that meet the eligibility criteria were ranked by market capitalization using closing prices as of the end of October and publicly available total shares outstanding as of the end of November.

XM Satellite Radio Holdings Inc. provides audio entertainment, information programming, and data services. The Company transmits its XM Radio service from its satellites to vehicle, home, and portable radios. XM Satellite Radio offers, as well as develops, more than 130 channels of news, talk, sports, traffic, weather, children's programming, and commercial-free music. The Washington, DC, company had a market capitalization of $6.6 billion at the time of ranking.

Autodesk, Inc. provides software and services to six million users in the building, manufacturing, infrastructure, digital media, and wireless data services fields that help customers create, manage, and share their data and digital assets more effectively. The San Rafael, California, company had a market capitalization of $6.1 billion at the time of ranking.

Liberty Media International, Inc. is a holding company that owns interests in broadband distribution and content companies principally in Europe, Asia, and Latin America. The Englewood, Colorado, company had a market capitalization of $6.1 billion at the time of ranking.

NTL Incorporated provides communications services to residential, business, and wholesale customers. The Company offers residential telephony, cable television, and Internet access services. NTL also provides national and international carrier telecommunications, satellite, and radio communications, as well as digital and analog television and radio broadcast transmission services. The New York, New York, company had a market capitalization of $5.8 billion at the time of ranking.

MCI Inc. provides business and residential communications services. The Company owns and operates network facilities throughout North America, Latin America, Europe, Africa, and the Asia-Pacific region. The Ashburn, Virginia, company had a market capitalization of $5.5 billion at the time of ranking.

Wynn Resorts, Limited is constructing and will own and operate Le Reve, a luxury hotel and destination casino resort in Las Vegas, Nevada. The Company is seeking to attract a range of customers, including middle market customers and high roller and premium gaming patrons. The Las Vegas, Nevada, company had a market capitalization of $5.3 billion at the time of ranking.

LM Ericsson Telephone Company is an end-to-end provider of mobile and fixed-line telecommunications equipment and services to operators worldwide. The company provides equipment in each of the major technology standards, as well as solutions for enterprise, mobile platforms, microwave, radar systems, cables and modems. The company also develops and manufactures mobile phones through its Sony Ericsson Mobile Communications joint venture. The Stockholm, Sweden, company had a market capitalization of $5 billion at the time of ranking.

Sirius Satellite Radio Inc., from its orbiting satellites, directly broadcasts more than 120 channels of music, news, entertainment and sports in digital-quality audio. The Company provides its services throughout the continental United States for a monthly subscription fee. The Company provides 65 commercial-free music channels in every genre, as well as 55 channels of news, traffic, weather, original talk programming and sports. The New York, New York, company had a market capitalization of $4.9 billion at the time of ranking.

© 2004 PRNewswire