Readmission to S&P/ASX200

IFN was removed from the S&P/SX200 index on 18 March this year when the shares were trading at 47c and market cap was about $453m.

While market cap is not the sole measure used in determining who is in or out, it does carry considerable weight. Recent corporate actions have considerably strengthened the IFN business. Further, IFN has begun paying dividends and says this is 'sustainable'.

Readmission to the S&P/ASX200 will broaden its appeal and liquidity as some portfolio managers and cautious investors are limited to this group.

This won't happen overnight as those who decide will want to see consistency, yet it will happen in time if the price stays up.

My margin loan has limits on how much IFN I can hold - likely to be true for other lenders. Continued good performance will see that restriction removed too, which will please me greatly.

The uplift benefits of these indirect reratings will accrue to those who already hold at the time of change.

BUY

Ash