Liquidity, volatility and market cap are all factored in when determining the LVR but coincidentally are also (minus the volatility) factored in to whether a stock makes it into the ASX300 list. So yes I would say being booted from the ASX300 played a part but it is still a "bonus" LVR stock, so if you hold 5 other lendable stocks then you will still be able to borrow against it although at a lower LVR. Hence commsec offering over 530 stocks as opposed to just the ASX300.
This stock is volatile and the market cap has been hammered significantly, without knowing Silex's background I would be hesitant in lending against a stock like this too. However, I think it presents great opportunity for those who have followed this stock, there is currently negligible goodwill priced into this stock with cash comprising the majority of the stocks value (at the current share price) with huge potential upside.
SLX Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held
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