PNV 1.30% $2.33 polynovo limited

Ann: 1H FY22 Results - Webcast Recording, page-143

  1. 257 Posts.
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    following on from Hottod, I have also been thinking again about rebalancing and what it might actually mean ...

    as far as I an see the key element in being included on an ASX list is that the stock is automatically included on an ETF list (eg. Vanguard) which in turn should increase interest in the stock, make for higher turnover and a reduction in the ability of stock price manipulation
    except I am not sure that that is true .. particularly in reference to stock price manipulation..

    in essence passive ETF funds really are passive and they literally do their own rebalancing every 3 months depending on the current SP vis a vie the total market value of, in this case the ASX 200
    what this means is that if the total value of the ASX is unchanged over a 12 month period but a stock price has fallen from $3 to $1 then the ETF's during this time will have reduced their holdings in said stock to 1/3 of what they initially had
    of course the opposite happens when the SP goes up .. but in essence the ETF's will, buy and sell the trend (God help me now I sound like Dory)

    I also had a look at what happened back in December when it first looked like we might be bumped from the ASX 200
    in the two days preceding we the SP took a hit from about $1.58 to $1.40... interestingly the same thing appears to have happened on this occasion
    if the pattern is to repeat, given that we were not bumped, then the price should now recover as the day and short term traders close out their positions..

    finally as Sojourner correctly pointed we will all become a bit if loopy, if we continue to focus on the SP and its share price fluctuations rather than on the company and it's brilliant products and prospects...
 
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