"...and therefore may qualify for the ASX100 when the next rebalance occurs."
On further reading, PME will probably have to pump some more iron before it can be promoted to the ASX100.
To limit turnover of the stocks in the indices, S&P have hurdles for both admission and eviction. For the ASX 100, the stock has to achieve an adjusted capitalisation ranking of 84 or lower for admission and 116 or higher for eviction.
The adjusted capitalisation ranking depends on the free float of notionally tradable shares as measured by S&P's Investable Weight Factor (IWF).
S&P deems the shares held by directors to be in the category of shares that they consider to be non-tradable. Thus, the relatively high proportion of shares still held by PME's founders handicaps PME's IWF and hence its capitalisation ranking.
Nonetheless, its pleasing to see that PME is knocking on the door to the ASX100.
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