NEA 0.00% $2.10 nearmap ltd

Great questions there, I'll try and keep it brief. 1....

  1. 3,103 Posts.
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    Great questions there, I'll try and keep it brief.

    1. Absolutely, it also encourages a lot more margin based trading as people/instos can usually only get the borrow to invest in ASX200 or ASX300 stocks. Many institutions/ETFs etc are trying to get more balance with the broader ASX given it's so heavily focused on banks, mining and telcos. Any tech company with a long term growth story and an innovative future will definitely be sought after for this very reason.

    2. Typically it needs to satisfy the points above and hold its mcap for the rebalancing period. Unfortunately the ASX200 is a bit deceiving at the moment as the lowest companies aren't deserving of the ASX200. They're only there because they were in the ASX200 during the last rebalancing period. Myer has shed some 37% since the last rebalancing period (7th December) so it will be gone from the next one. Unfortunately it looks like you'd need at least $900 million with the latest rebalance to get in. NEA will make the ASX300 which is getting there. A lot of market darlings have boomed in recent times such as KGN, APX, ALU, WTC, APT, lithium stocks and others really pushing the entrance to ASX200 much higher.

    3. Correct but I'd be surprised if the net benefit of more stock issuance will contribute to a better overall value proposition for current holders. I wouldn't be concerned for a company like NEA because growth prospects are intact and all capital will be used efficiently which is the most important aspect.

    GLTAH, looks like instos aren't slowing down anytime soon. Onwards and upwards!
 
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Currently unlisted public company.

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