Australia's largest stock trading and investment forum Australia's #1 stock forum

MML

Click for more information

2.41%

85.0¢ medusa mining limited

So the prospect for relisting is significantly bullish for the...

First 3 Last

Share
Profile

Follow
cncventure

812 Posts.

1

12/04/16

14:44

Post #: 17483206
Share

Originally posted by nordesmic ↑

I think for a stock to be added to the GDXJ it needs to be over a US$150M but also have a couple of consecutive quarters of daily volume above a certain number (US$1Million from memory).

MML only trades small volume so could struggle to get back in soon.

DRM might be a potential candidate but I imagine there are a lot of gold stocks who are starting to look like candidates for addition to the GDXJ.

In terms of effects on share prices, what tends to happen is front-running by a lot of hedge funds etc prior to the announcement of stocks to be added/deleted from the indices (the addition/deletion announcement happens a week or more before the actual rebalance and is published by Van Eck somewhere).

There is so much front-running of these rebalances that the potential gains are harder to get. A lot of funds got burnt last quarter when they shorted NST/EVN before the rebalance only to buy them back higher on the Friday rebalance. Plus the fed meetings tend to coincide with the rebalance dates and make gold more volatile.

Expand

So the prospect for relisting is significantly bullish for the price itself and increases trading volumes?

Also how much stock is Van Eck likely to acquire on a relisting?

MML Price at posting: 83.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

ASX Market Close: ASX closes above 8,400pts on green Wednesday | Nov 27, 2024

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 22 more messages in this thread...

First 3 Last

Add MML (ASX) to my watchlist