Mullen Automotive gets indoctrinated into the Russell 3000/2000 and eligible to be purchased by index funds on June 27th
When you put money in an index fund, that cash is then used to invest in all the companies that make up the particular index, which gives you a more diverse portfolio than if you were buying individual stocks.
So you're going to have large institutions such as Fidelity, Janus, BlackRock that HAVE NO CHOICE but to pick MULN shares up.
People get index funds and ETF's confused with one another.
While the S&P 500 index typically contains larger, well-established companies, the Russell 2000 Index follows the performance of around 2,000 U.S. small cap companies, MULN being one of them. Like the S&P 500, the index is weighted and regularly serves as a benchmark index.
Dave Michery stated the latter in his latest benzinga interview.
What's of interest to me is whether or not David had to apply to be in the Russell or they made it in on their own merits based upon certain criteria of which I am not exactly informed enough to explain?
Regardless, come June 27th, I believe we will begin to see these institutional whales take out these smaller hedge funds as they all line up to purchase shares of MULN as mandated by their own doctrines.
One would imagine they would want to get in on the cheap, but it wouldn't be such a good idea if they manipulated the share price down prior to the 27th so that they could accumulate from all the weak hands on and shortly after the 27th. If they were short selling the shares to drive them as low as possible so they could obtain them as cheaply as possible on the 27th, they would ultimately have to cover their short position so this would be counterproductive.
June 27th is an interesting day. It certainly would be interesting if David released the Fortune 500 news on that same day or a day or so afterwards so that institutional purchase power and shorts buying to cover - run the shares up exponentially.
Thoughts?
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