It seems to me that smaller cap stocks that have been beaten down in price and decide to change their capital allocation strategy (from very high dividend to no dividend and share buyback) immediately get heavily sold by all those funds which can only invest in companies that provide dividends. How do these funds / etf do their selling? What’s the process exactly? It seems to me that they provide with massive opportunities in that their forced selling brings down the company’s stock price almost scientifically. If someone is an expert on how these etf / funds operate, it’d be great to have more insights. It seems to me like a great opportunity to exploit some Market inefficiency.
Submitted November 26, 2019 at 05:45PM by unreasonableinv https://ift.tt/2qMsNiU
