Hi FolksI am an old stats man.I have watched every ASX300 for...

Hi Folks

I am an old stats man.

I have watched every ASX300 for several years for inclusions. I do this so that I can discover the up and comers. I do my research and then track them and then I make a decision on whether they are worth the risk.

There has been much discussion on the BRN site about the effect of inclusion into the ASX300.

I'm a stats man so I am going to present you with evidence of the last rebalance announcement made on the 4th Sep 2020.
There were 7 new inclusion , I can't use their full code for then I can be accused of cross promotion.

The data I will present is the closing price as at the close of trading on the 4th Sep 2020, Next the peak they reached to in the coming 3 months and finally the price at the close of 4th Dec 2020 three months later.

The first four soared and then crashed
COD* > Sep4 > Peak > Dec 4

AL* > 1.125 > 1.54 > 1.04

CM* > 1.95 > 2.37 > 1.69

DE* > 1.22 > 1.60 > 1.115
TP* > 9.21 > 14.05 > 9.72

The other four fared better

COD* > Sep4 > Peak > Dec 4

DD * > 7.26 > 10.97 > 10.75

EV* > 8.38 > 11.50 > 10.80

RE* > 12.12 .> 14.79 > 14.17

So inclusion into the ASX300 is no magic bullet. As I have seen with many other ASX300 rebalances. This is a fairly typical event.

BRN case so far

COD* > Mar12 > Peak so far > June 12

BRN > 0.48 > 0.77 > ????

I'll let you draw your own conclusions.

Just the way I deal with the markets so that I am not surprised. DYOR

cheers Lies