TitusPullo, thanks for the reference to the Alan Kohler...

TitusPullo, thanks for the reference to the Alan Kohler interview.
Searching for “US Market Anchors Pro Medicus Growth” worked for me.

This recent big contract win by PME further supports my long-maintained shy hope that PME is on course to become the Microsoft of medical imaging.
So ubiquitous that every radiologist has some kind of gripe about them, but doing their job without PME’s product is unthinkable.
( Evidently, the comparison with Microsoft also crossed Alan Kohler’s mind in the course of the interview with Sam Hupert.)

Also, PME must be getting very close to being promoted into the XTO Index.
On a straight market capitalisation basis, PME’s market cap is currently sitting at about the 54th rank in the XTO.

However, the S&P index methodology uses 6-month averages and takes account of other factors, such as liquidity and how much of the stock is available for institutional investing.
With 50% of PME’s shares still held by the two founders, PME is somewhat handicapped in terms of its “free float adjusted market capitalisation”.
Also, in order to limit the turnover of the index constituents, S&P imposes a threshold of a certain number of rankings that must be exceeded for either inclusion or expulsion.
in the case of the XTO, the hurdle is set at 16 rankings both ways.
Put simply, for a stock to get into the XTO , it has to attain the 84th ranking, or higher, and if a stock is already in the index, then it stays in unless it drops down to the 116th ranking, or lower.

If we halve PME’s present market capitalisation to allow for the non-contestable shares held by the owners, the adjusted market cap is presently sitting right at the 84th place in the XTO list.
Subject to there being no other contenders for admission, PME would need to maintain that ranking for 6-months in order to get admitted to the club or if it can improve the ranking further it should get admitted even sooner.
When that happens, various of funds will be obliged to hold the stock or acquire it if they don’t already own it in sufficient quantity.
I am happy to be corrected if others know more about the indexing mechanics that apply to PME.

Cheers