We've already had one name change, and a reverse split (Steel Excel, formerly ADPT) among the members of the CS 26 Net/Net Index, and now another name is being taken out. Big Band Networks (BBND) is to be acquired by Arris for $2.24 per share. Big Band is now the leading performer since inception for CS26, up 67%. If and when the deal is completed, for the purposes of the index, proceeds from the sale will be put in cash.
Its only been one month since we launched CS 26, and given past experience, there will likely be more acquisitions, perhaps a bankruptcy, and other surprises during the two year period we'll be traking this index.
So it goes in Net/Net land.
*The author has no position in the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.