Some of my best investments have been found in the March...

Some of my best investments have been found in the March rebalance of the all ordinaries index. Very good companies that have hit a temporary rough patch get kicked out and dumped only to rise again.

Last year there were many companies in the index with market caps in the $200m to $250m band. None of the ones that were kicked out showed much promise.

I just checked and at the moment there are 5 companies with market caps of less than $400m and considerably more in the $400m to $450m band.

Based on past performance VMT would need to sell around 26,000 units in a half year and trade on a PE of 35 to get above a $400m MC.

Before the delta strain emerged VMT was trading on a PE of 45 based on annualising the prior 6 months profit.

Can VMT do 26,000 units in the second half of 2021.

First half 19 sales were 6936 units First half 21 was 13,273 units that is 1.98x

Second half 2019 sales were 13035 units. 1.98x = 25809.

If the immediate past is any indication then it could be a possibility. If that happens a PER of 45 might be revisited and $400m could turn into $514m and we could romp into the all ordinaries