Ive had a look at the 2 groups of companies who either joined us in exiting the Energy sector of the ASX500 at this time last year or were in the group who replaced us(and our fellow exiters) in that Energy sector.
I must say S and P got it pretty much right with the new joiners-many have gone on to higher MCs and none appears to have floundered.
Similarly they got it pretty much right with our fellow exiters-several have crashed and burnt and we are the star performer -up nearly 100 % on our SP at this time last year with CVN the 2nd best performer (up about 50%).
Last year was a rather ruthless cleanout of the index to make way for candidates considered elegible to join but without spaces free in the index to accomodate them.
The SP going from 10.5c to 11.5 this morning is just what the doctor ordered (if 11.5c holds for a week S and P will take the last snapshot of the ASX field shortly before 8 March and should be able to put us back into the index with a MC that gets us in with MC to spare.
You cant be sure what S and P will do-there is a reluctance to readmit companies that were booted out only a year ago but you would have to take heart that they certainly (IMO) have a very good idea where companies are heading-North or South,judgingby their assessment of the various companies mentioned above.
Our SP gain and our going upmarket into the prestigious world of LNG wont have gone unnoticed.
Fingers crossed for 8 March. We could do with some big(ger) guns to take the flimsily held stock of the table
HZN Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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