Originally posted by Bonnie73
I think the ASX inclusion theme is a bit premature. SFG current market cap around 250m, the following companies and respective market caps were included this time:
AMI 539m, CUV 852m, IGL 333m ( which I have a good chunk of, great value IMO), JMS 666m, KGN 574m, MNY 396m, MP1 414m,NEA 697m, OMH 1005m, PNI 1296m, PNV 365m, PPS 424m, SEA 522m, WGN 707m.
So really unless another big capital raise, at current number of shares on issue the SP would need to sustain levels above 20 cents for consideration of ASX 300 inclusion for market cap > 320K.
I agree that some of our correspondents have over-stated the ASX300 inclusion likelihood.
Although your understanding of market-cap requirements are a little bit inaccurate, I've highlighted the point where SFG would fit based on today's constituents and market caps.
The problem isn't SFG's market cap - it's the company's relative liquidity. We're not quite liquid enough for inclusion - if you've read the listing criteria the relative liquidity requirements are
almost more important than the market cap. Our average weighted market cap was too low for September inclusion, but our volume of trades were even worse. If we maintain around our current valuations were on track to move us into March's rebalancing, if we keep volume up above say 1-1.5 million a day. Of course, our volumes are trending down again.
^this graph is volume from March to September - as you can see, March, April, May things were not really traded until late May, then things went quite again until the end of July - we need to keep our volumes up if we're going to get included in the index.
