RMS 1.02% $1.95 ramelius resources limited

March 10- RMS' date with destiny

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    Those who sought to upbraid me for suggesting that the substantial Van Eck shareholding in Ramelius squarely puts the company in the eligible for takeover class may be encouraged to learn that S&P will almost certainly graduate the company to the ASX 300 index.
    When?
    On Friday 10th March .
    The so called March rebalance event takes effect from the 3rd Friday being the 17th but the announcement of who hets removed and who gets added ...should occur on Friday 10th .I cant see Doray staying..even if it has only been there for 6 months . So Sell DRM and buy RMS?
    So will this rebalance event have a significant effect? I believe it will. Most fund managers are schooled in the growing impact of the passive index funds. So the RMS graduation is a signal event for them. Beyond the ETFs there are the active fund managers for whom the primary constraint is inclusion in the ASX 300. Whilst the ETFs cant buy until rebalance day the enterprising active managers may commence buying from announcement day ( on Friday 10th).
    Whilst it's true that the significant ( not substantial) aggregate RMS position of mine and my associates must introduce some bias into my RMS commentary I suggest that inclusion in the ASX 300 gives the company the institutional gravitas to elevate it from "junior" to "mid tier". It could mean another 20 cents added to the RMS shareprice.
 
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