Ann: Director Share Purchase - David Williams, page-67

I am amazed shorters are still building positions. I'd have taken profits and run on such sustained insider trading. DYOR and have a good grasp of the six month moving average mkt cap being the main criteria (with regard to rebalancing), but in the S&P ASX200, David's buying has helped moved PNV out of the bottom three stocks by mkt cap in the ASX at the beginning of May, to 8th off the bottom of present ASX200 components by mkt cap at close today:

PNV $860 million
CUV $806 million
PBH $805 million
APX $777 million
360 $708 million
EML $594 million
TYR $587 million
CCX $582 million

CCX is a real quandry, as S&P (foolishly?) only added in March, but it literally collapsed in February after terrible earnings (retail) and only continued down. Unusual for S&P to remove after only three months in, but it may have to, as by purely six month average mkt cap criteria, CCX should be a goner....

After expecting the stock I hold (PNV) to be removed from the ASX200 late April (and not too bothered because I expected a short-term bounce on actual removal, as most funds would have likely already done the majority of selling), I am now actually in the stay camp, at present. Looking at likely additions/removals and comparable six month average mkt caps, I think PNV may have done enough in share price (mkt cap) performance to stay execution.

Like most longs on here, I am fairly confident of it sustaining a free cash flow positive business, unless any unforeseen drastically superior competition enters the market, and so see the share price rising even further if its stays. If it does, it would be a good reminder to invest in stocks on their business fundamentals rather than any short-term mkt structural considerations.