MSB Trading - 2020, page-7749

At what price will ASX Fund Managers will review their positions?

Charts below demonstrate MSB potential with future ASX rebalances. The June 2020 rebalance will likely see MSB enter the ASX200. Strong trading over the past 6 months puts MSB deep in the ASX 200. Current price puts MSB at approximately 130 out of 200. When the rebalance occurs funds managers will have to review their positions, this will likely drive MSB share price even higher by those fund managers that do not already own and are forced to pay higher prices.

Chart Setup
Left hand side = Market Cap
Right hand side = MSB's Share Price
Bottom = approximate ASX position

Lower blue line shows MSB current share price of $3.69 intersecting approximate ASX ranking of 130.

Upper blue line shows MSB could enter the ASX100 with an average Share price of approximately $7.58 during either the September or December 2020 rebalances.

$7.50 is not an unrealistic short-term target as it was the 12 month price target prior to ARD's.




Additional demand from larger Insto will put even more pressure on MSB share price. MSB could join the ASX50 in March 2021 if can average a Share price of $17.78 during the period.




While we all wait for the next set of announcements the share price should continue to grind higher.