Wednesday, 10 September 2008

Autonomy re-enters FTSE100

FTSE confirmed today that Ferrexpo, Enterprise Inns, ITV and Carphone Warehouse will leave the FTSE 100 and be replaced by mining company Fresnillo, satellite operator Inmarsat, software company Autonomy and transport company Stagecoach.

I rather jumped the gun on this in my 17th Aug post - Autonomy to enter FTSE100! I also wrote a short history of UK SITS companies and the FTSE100. Worth re-reading as a salutary tale of what happened in the last bubble.

I do hope that Autonomy is in a different position today. Autonomy has the right products for today's environment - helping companies with their compliance issues. But they are already very richly valued and, without wishing to be a party pooper, Autonomy has got into the FTSE100 this time because of the considerable reduction in the values of practically every FTSE100 constituent. One small bad news item could hit Autonomy hard. If/when markets recover, Autonomy is going to have to go some to retain its FTSE100 place.

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