Wattle Health included in the ASX All Ordinaries Index as part...

Wattle Health included in the ASX All Ordinaries Index as part of Quarterly Index Rebalancing

By
Team Kalkine
-
March 11, 2019



Wattle Health Australia Limited (ASX: WHA) is in the business of offering organic and sustainable products for promoting health and wellness at all stages and is aspiring to become globally recognised for its superior quality offerings. The company uses natural ingredients derived from Australia’s pure water, clean air and organically fertile soils and carefully packs them in the way which is designed to preserve the nutrients. The company’s quality-assured supply chain guarantees the highest possible standards of purity, and whenever possible, it sources certified organic ingredients which are totally free of fertiliser or pesticide residues. In the quest to maintain soil biodiversity to produce naturally superior products that can be enjoyed for generations to come, the company is supporting Australian farmers who embrace soil management practices.

On 11th March 2019, the company announced that as a result of the quarterly rebalancing of the S&P/ASX indices, it is included in the S&P/ASX All Ordinaries Index (ASX: XAO) from the opening of trading on 18th March 2019. For the rebalancing of the index, the companies are selected by a committee from the Australian Securities Exchange (ASX) and Standard & Poor’s (S&P). Some of the other companies that have been included in this index are Coronado Global Resources Inc. (ASX: CRN), Audinate Group Limited (ASX: AD8), Redcape Hotel Group (ASX: RDC) etc. To maintain the count to 500, equal no. of companies have also been removed, some of which are Australian Mines Limited (ASX: AUZ), Brainchip Holdings Ltd (ASX: BRN), Bionomics Limited (ASX:BNO) etc.

The All Ordinaries Index is Australia’s most prominent market index and provides the benchmark for the “whole” Australian stock market. The S&P/ASX All Ordinaries Index includes the top 500 of the largest companies listed on ASX (in terms of market capitalization). The market capitalisation cut off for initial entry is $40 million which essentially accounts for all sized companies except micro-caps. However, liquidity is not the criteria for the inclusion of the company in this index, except for foreign domiciled companies.

On 7th March 2019 (AEST: 1:08 PM), the company announced the appointment of Dr. Tony Mckenna of Corio Bay Dairy Group (CBDG) as its new CEO, with over three decades experience in the dairy industry, both domestically and internationally.

On 11th February 2019, the company announced that it is increasing its stake in Blend & Pack Pty Ltd (B&P) to 51% for $46 million from prior 5% stake. This increase in the stake will give the company the controlling rights, and after this acquisition, the assets of WHA’s group will stand around $165 million.

As of 11th March 2019 (2:55 PM AEST), the stock is trading flat at A$0.880 compared to the previous closing of A$0.88 which is very close to its 52-week low of A$0.860. However, if we look at the returns from listing from March 2017, it is well above 350% which is an astounding return for 2 years. The YTD return of the stock is slightly negative at 3.3%.