Talk to Chuck

SCHM, SCHV, SCHX, and SCHB have all taken positions in TPL as of late. SCHM, which has the largest position by shares, is focused on the Dow Jones US Mid-Cap Total Stock Market Index and appears to be passive.

In addition to Schwab, a couple of Manulife large and mid-cap ETFs have also positioned TPL.

S&P 500?

Many have written to me to ask about index inclusion. I’m no expert, but here are some resources:

Hot off the press: Unadjusted market cap minimum for the S&P500 is $11.8B

$11.8B / 7,756,156 shares (is it bad that I that number by heart?) = $1,521.37

S&P500 overview

To be eligible for S&P 500 index inclusion, a company should be a U.S. company, have a market capitalization of at least USD 9.8 billion, be highly liquid, have a public float of at least 10% of its shares outstanding, and its most recent quarter’s earnings and the sum of its trailing four consecutive quarters’ earnings must be positive.

The committee meets monthly. At each meeting, the Index Committee reviews pending corporate actions that may affect index constituents, statistics comparing the composition of the indices to the market, companies that are being considered as candidates for addition to an index, and any significant market events.

Index methodology

• S&P Composite 1500. Using composite pricing and volume, the ratio of annual dollar value traded (defined as average closing price multiplied by historical volume over the last 365 calendar days) to float-adjusted market capitalization should be at least 1.00, and the stock should trade a minimum of 250,000 shares in each of the six months leading up to the evaluation date.

With 252 trading days, the stock needs (1.00 / 252) = 0.4% of shares traded per day on average. See last post for more context on that.

Again, not an expert but it seems like TPL is on its way. Poke holes in the comments! Not trying to spike the football on the current run. As a long time investor, being back to $900 next week would not shock me. This stock jumps. But over the long run, will it get into the 500?

Post Conversion Volume

A rough approximation of daily $ traded value (closing price x volume) and, by extension, percentage of market cap traded shows (though its been hard to miss) that volume is up substantially post conversion. With volume at 70k shares at mid day and the price bouncing off ATH, today will be a another big one.

CVX Ramp Up

Chevron plans to ramp up investment in North America’s biggest oil field through 2025, reversing the pandemic-driven production decline, the company said in an investor presentation Tuesday. Chief Executive Officer Mike Wirth surprised investors by restoring the million-barrel Permian target only a year after it disappeared from the company’s guidance as Covid-19 crashed energy markets.