Russell Rebalance Including & Excluding Key IPO’s (BPI, DGI, OPEN, RST, RHIE, SWI, CYOU, LOPE, MJN, RAX)

We will have some changes or further additions and deletions coming today from Russell for the highly awaited Russell rebalance and reconstitution taking place late this month.  What is interesting about the group’s additions and deletions is that there are many of the hot (and not so hot) companies which came public via an IPO that are in the Russell index changes.

Bridgepoint Education Inc. (NYSE: BPI) is being added to Russell 3000 and to the Russell Global.  DigitalGlobal Inc. (NYSE: DGI) is actually trading as a busted IPO and it is being added to Russell 3000 and to the Russell Global.  OpenTable (NASDAQ: OPEN) is being added to Russell 3000 and to the Russell Global.  Rosetta Stone Inc. (NYSE: RST) is being added to Russell 3000 and to the Russell Global.  RHI Entertainment (NASDAQ: RHIE) was a distant IPO but it is being added to Russell 3000 and to the Russell Global.  SolarWinds Inc. (NYSE: SWI) is a very fresh IPO and is being added to Russell 3000 and to the Russell Global.  There is also a list of other key IPOs which were not included for certain issues.

Changyou.com Limited (NASDAQ: CYOU) was not listed in the first preliminary list for the Russell 3000 but that could be from an ADR status, the percentage of the free float to total shares, and the recent spin-off.  Grand Canyon Education (NASDAQ: LOPE) was not listed on the preliminary list, and that may be a free float issue versus total shares.  Mead Johnson Nutrition Co. (NYSE: MJN) was also not on the Russell 3000 preliminary list, but that may be an issue over the total float and spin-off. RackSpace Hosting Inc. (NYSE: RAX) was not on the initial list.

As noted with the speculative energy stocks getting booted off the list, there will be changes and adjustments announced today and next Friday before the final-final lists are posted on Monday June 29, 2009.

Jon C. Ogg
June 19, 2009