Replies to post #33354 on Value Microcaps Junior Miners

[Luke_McCain]

Hey rrten,

Van Eck has announced June 17 as the date to begin their latest rebalancing, based on a final list due out by the end of May.

This article pulls in information from different sites, and includes two tables showing potential additions & deletions, with GORO on the latter, but towards the bottom.

http://www.pinnacledigest.com/tsx-venture-investing/gdxj-etf-rebalance-coming/

Also:

GDXJ additions: http://themacrotourist.com/images/2017/04/AddsApr1917.png

GDXJ deletions: http://themacrotourist.com/images/2017/04/DeletesApr1917.png

You can get the daily share numbers directly from the source:

https://www.vaneck.com/etf/equity/gdxj/holdings/

Since the announcement, there has obviously been a lot of front-running, so they have been forced to sell shares anyways.

If you know how many GORO they held before the announcement, you can do the math.

They say that the size of this rebalancing could be as much as $ 2.5 billion. That's easily a week's worth of volume of every company in the index!

Two other things to consider:

1.) Without Van Eck buying some of these juniors, and "juicing" them from time to time, who is going to step in after the rebalancing?

2.) They are also screwing with JNUG, and if enough traders decide that it is no longer worth the trouble, because of the swaps, futures, etc. involved, that will add to outflows in GDXJ.

I've been out of this sector for a while, but maybe after the carnage is over, I might look into one or two companies. Maybe something from C28's list, since I know he does his homework as thoroughly as I do. When I invest in a small company, I want to know the CEO's colonoscopy results! LOL!!

Enjoy your weekend,

Luke