Well, well - so this is starting to look more and more like an omen of good fortune:
As for ASX300 inclusion, I gave a relatively detailed synopsis of the applicable criteria in my earlier post here:
https://hotcopper.com.au/threads/general-comments-chat.4779186/page-15640?post_id=50944714Important to bear in mind, among other matters, that the market capitalisation requirement for ASX300 inclusion is considered on the basis of the
daily average market capitalization of a security over the last six months - on this basis solely it is likely ADN's market capitalisation could be assessed as being significantly lower than where it currently sits.
It is also of significance that the "buffer" aspect requires ADN to rank at 274th or above by float-adjusted market capitalisation for addition to the index. This is no low bar for a company to hurdle.
However:
- I have an unsubstantiated feeling that the "discretionary" element may well favour ADN at this stage. I suspect we all agree that it is an outstanding company with a great story and exceedingly bright future, and any reasoned view would conclude that there is a genuine likelihood its ascendency will only likely continue (with production set to commence next year), rather than decline from here.
- The phenomenal buying "push" in the past couple of days may very well make a material difference to inclusion. The reason for this is based on the following (my emphasis added):
"A representative from Standard & Poor’s is the chairman of the Index Committee. Meetings are held on a quarterly basis as well as on an as needed basis should unusual corporate events warrant. The Index Committee reserves the right to use discretion to include, exclude, adjust, or postpone the inclusion of a stock, the shares, and the Investable Weight Factor (IWF) of a stock." and "In times of high volatility the current market capitalisation of the stock may also be considered." So, in essence, the Index Committee seemingly retains a discretionary right to include a stock and "adjust" its attributes for the purposes of inclusion in the ASX300.
While I do not know how "times of high volatility" is actually defined for this purpose, we certainly know that the world markets have been on an undeniable roller-coaster ride of recent times and certainly over the past 12 months. On this basis, ADN
might be considered on the basis of its
current market capitalisation alone (which will presumably be much higher than its daily average market capitalisation over the past 6 months).
Time will tell of course. I have funds waiting in my superannuation fund to buy if ADN does end up making it this time around. All of the above represents my unqualified opinion only and is not to be relied on as advice in any form.
Very best wishes to all.
(20min delay)