BRN - ASX Rebalance

[Krustor]

We here in Germany are unfortunately way off the regulations from the ASX200.

Nevertheless this Friday seems to be Deadline for the rebalancing.

Could someone with deeper knowledge as we have here just explain if there is a chance to make it into the 200?

What are the exclusion criterias? And if there won't be chance at the moment: Next possible entrance possibility?

Thanks in advance and best greetings from Bavaria

 

[MDhere]

What are the chances that the latest shorting/manipulation spree is designed to prevent BRN gaining access to the ASX 200 which would have an uplifting influence on the SP. Entry into the 200 would mean more institutional money and less chance of playing silly buggers with the price.

not entirely sure how it works but as Space Cadet mentions 1.79 there may be some wild swings up between now and the 4th March, then more institutional buying past $2 then back to around 1.60 if no announcements by April or May bit my guess is there will be so im going to strap myself in. Could be way off but thats my hunch, the players can still play but only if there are sellers I imagime the sellers will dry up between now and April. But im just a regular person with a hunch. bit like that's that saying the asx investor says... he is just another random guy

 

[davidfitz]

We here in Germany are unfortunately way off the regulations from the ASX200.

Nevertheless this Friday seems to be Deadline for the rebalancing.

Could someone with deeper knowledge as we have here just explain if there is a chance to make it into the 200?

What are the exclusion criterias? And if there won't be chance at the moment: Next possible entrance possibility?

Thanks in advance and best greetings from Bavaria

Despite my efforts to get a clear idea of how this works here are some basics which hopefully help. Not much on the web but this site may help.

https://www.marketindex.com.au/asx200/announcements

S&P/ASX 200 Announcements
The S&P/ASX 200 is regularly rebalanced to ensure a highly liquid and tradable index is maintained.
Two benchmarks are used to compare ASX listed companies and determine eligible for inclusion in the index.
1. Average market capitalisation over the preceding six-month period
2. Liquidity
NOTE: A security is only considered for inclusion when another security is removed.
Quarterly Rebalances
• Occur on the third Friday of March, June, September and December.
Intra-Quarter Deletions
• Occur at any time depending on the situation (e.g. merger).
• Two to five business days notice is generally given.

You can see from the following that there have been some securities removed since the last rebalance so the NOTE above indicates that we can be considered but unsure of the other requirements.

However, based on today's price alone this is how we sit in the rankings.

https://www.marketindex.com.au/asx300

Size​

Market Capitalisation	$2,177,239,923
ASX Rank	188 of 2,403
Sector Rank	12 of 232

Only a few more days and we should know for sure!

 

[Frank Zappa]

not entirely sure how it works but as Space Cadet mentions 1.79 there may be some wild swings up between now and the 4th March, then more institutional buying past $2 then back to around 1.60 if no announcements by April or May bit my guess is there will be so im going to strap myself in. Could be way off but thats my hunch, the players can still play but only if there are sellers I imagime the sellers will dry up between now and April. But im just a regular person with a hunch. bit like that's that saying the asx investor says... he is just another random guy

I to , have no idea how it works . That being said , there has been posts recently relating share price at the time with what position BRN was within the top 200 .Another poster stated that the company would have to be higher up within the top 200 to be considered and included .Perhaps one of our chartists could create a graph correlating present share price with BRNs potential position within the top 200 companies using the knowledge from one of the posters here . The two posters working together would be fabulous for the site and should inspire other possibilities when useful in the future. With the market becoming a trifle fragile at present, all it needs for BRN to increase 10to 15% in price is for one of our top twenty shareholders ( which are totally blue chip) to increase their holding at an appropriately sensible time .Just iopining

 

[Frank Zappa]

I to , have no idea how it works . That being said , there has been posts recently relating share price at the time with what position BRN was within the top 200 .Another poster stated that the company would have to be higher up within the top 200 to be considered and included .Perhaps one of our chartists could create a graph correlating present share price with BRNs potential position within the top 200 companies using the knowledge from one of the posters here . The two posters working together would be fabulous for the site and should inspire other possibilities when useful in the future. With the market becoming a trifle fragile at present, all it needs for BRN to increase 10to 15% in price is for one of our top twenty shareholders ( which are totally blue chip) to increase their holding at an appropriately sensible time .Just iopining

The previous poster David Fitz has offered the real ingredient to the rebalance . As the asx200 is calculated on the average capitalisation of BRN over the preceding 6 months , I doubt that we will comply with that requirement. Oh well , maybe in another 3 months we should have a very good chance .

 

[Frank Zappa]

The previous poster David Fitz has offered the real ingredient to the rebalance . As the asx200 is calculated on the average capitalisation of BRN over the preceding 6 months , I doubt that we will comply with that requirement. Oh well , maybe in another 3 months we should have a very good chance .

The rebalance in my opinion will be guaranteed next time around . Oil at $106 a barrel. The owners of their chevies will be driving them over the levies and returning home with a brain chipped fuel efficient vehicle .Goodbye V8 , I owned and loved many but I can see a very limited future .

 

[davidfitz]

I was finally able to get the schedule for this year's rebalances. Not that it sheds any light on our inclusion to the ASX 200 but at least we can track it each quarter.

Thank you very much for contacting S&P Dow Jones Indices.
Please refer to the below table regarding the S&P/ASX 200 rebalance schedule.

You can download our rebalance calendar from the below link.
https://www.spglobal.com/spdji/en/governance/methodologies/#methodology-information
(Please scroll down till the end and go to Rebalancing->Equity->Current to download the file.)

 

[Techinvestor17]

I was finally able to get the schedule for this year's rebalances. Not that it sheds any light on our inclusion to the ASX 200 but at least we can track it each quarter.

Thank you very much for contacting S&P Dow Jones Indices.
Please refer to the below table regarding the S&P/ASX 200 rebalance schedule.

View attachment 2141


You can download our rebalance calendar from the below link.
https://www.spglobal.com/spdji/en/governance/methodologies/#methodology-information
(Please scroll down till the end and go to Rebalancing->Equity->Current to download the file.)

So we will know tomorrow

 

[davidfitz]

So we will know tomorrow

Unlikely to find out that quickly. When we were added to the ASX300 the announcement by S & P was on 12 March 2021 so probably give it another week or so.

 

[Frank Zappa]

I was finally able to get the schedule for this year's rebalances. Not that it sheds any light on our inclusion to the ASX 200 but at least we can track it each quarter.

Thank you very much for contacting S&P Dow Jones Indices.
Please refer to the below table regarding the S&P/ASX 200 rebalance schedule.

View attachment 2141


You can download our rebalance calendar from the below link.
https://www.spglobal.com/spdji/en/governance/methodologies/#methodology-information
(Please scroll down till the end and go to Rebalancing->Equity->Current to download the file.)

Thankyou for your efforts . I try and understand what is there

 

[Techinvestor17]

Unlikely to find out that quickly. When we were added to the ASX300 the announcement by S & P was on 12 March 2021 so probably give it another week or so.

Last column is the dates of the ASX announcements it’s the first Friday of the month for each quarter.

 

[davidfitz]

Last column is the dates of the ASX announcements it’s the first Friday of the month for each quarter.

Ok, that appears to be the case so fingers crossed we are added although not sure if we meet the criteria this time around. I have done as much research as I can at this point but if anyone is interested the following explains the methodology involved (a bit complex for me).

https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-asx-australian-indices.pdf

Index Maintenance

Rebalancing

Rebalancing of the S&P/ASX Australian index series occurs on a regular basis. Shares and Investable Weight Factors (IWFs) updates are also applied regularly. The reference date used for the trading data is the second to last Friday of the month prior to the rebalancing.

Rebalancing announcements are made on the first Friday of March, June, September, and December; therefore, a two-week notice period is provided before the rebalancing takes effect at each review.



Buffers. In order to limit the level of index turnover, eligible non-constituent securities will generally only be considered for index inclusion once a current constituent stock is excluded due to a sufficiently low rank and/or liquidity, based on the float-adjusted market capitalization. Potential index inclusions and exclusions need to satisfy buffer requirements in terms of the rank of the stock relative to a given index. The following buffers aim to limit the level of index turnover that may take place at each quarterly rebalancing, maximizing the efficiency and limiting the cost associated with holding the index portfolio.

 

[davidfitz]

Last column is the dates of the ASX announcements it’s the first Friday of the month for each quarter.

Now I am just confused, best to just wait and see

Hi David,

After the market close on 18 Mar. You can check the below ASX link for Quarterly Rebalance Announcement.
https://www2.asx.com.au/markets/trade-our-cash-market/announcements.zsp

Please let us know if you need any other questions.

Kind Regards,
Miyuki Kaneko

S&P Dow Jones Indices
Beijing +86 10 6569 2770 | Dubai +9714 3717131| Hong Kong +852 2532 8000 | London +44 20 7176 8888 | Mumbai +91-22-2272-5312 I
New York +1 212-438-7354 or +1 877 325 5415 | Mexico & Brazil +52 55 1037 5290 | Sydney +61 2 9255 9802 | Tokyo +813 4550 8564
www.spglobal.com/spdji

 

[Wags]

Now I am just confused, best to just wait and see

Hi David,

After the market close on 18 Mar. You can check the below ASX link for Quarterly Rebalance Announcement.
https://www2.asx.com.au/markets/trade-our-cash-market/announcements.zsp

Please let us know if you need any other questions.

Kind Regards,
Miyuki Kaneko

S&P Dow Jones Indices
Beijing +86 10 6569 2770 | Dubai +9714 3717131| Hong Kong +852 2532 8000 | London +44 20 7176 8888 | Mumbai +91-22-2272-5312 I
New York +1 212-438-7354 or +1 877 325 5415 | Mexico & Brazil +52 55 1037 5290 | Sydney +61 2 9255 9802 | Tokyo +813 4550 8564
www.spglobal.com/spdji

I think the cut-off date is as you have described, the first Friday, and the announcement is the 18th. Just my take on it but maybe Im just as confused, haha. Don't ask me where the exit is, we're lost, ha

 

[Bobbygant]

The rebalance in my opinion will be guaranteed next time around . Oil at $106 a barrel. The owners of their chevies will be driving them over the levies and returning home with a brain chipped fuel efficient vehicle .Goodbye V8 , I owned and loved many but I can see a very limited future .

Any V8 is a good investment these days better than shares when you sell it is all cash no tax on it!

 

[Glen]

Based on the current figures (at the time of writing this) our SP would need to be above $1.19 to make it into the ASX200.

Looks like the shorts are killing that number.

 

[Chipper]

Does anyone feel like we’re getting shorted out of the asx200??

 

[Frank Zappa]

Any V8 is a good investment these days better than shares when you sell it is all cash no tax on it!

The AKD 1000 is being advertised on LinkedIn and for the last 8 hours . BRN is below the $1.19c per share which a previous poster put us outside of the top 200 companies plus not a high enough average share price over 6 months . Looks like a constructed slide in share price when those with the tools to calculate that we were not going to be rerated have decided to carefully exit a percentage of their holding . I played the game of ‘ if I sold my shares today and bought them back in 5 days ‘ how many extra shares would I have . In each Phantom exercise I would have been in front . To play the game after today my feeling is that it will become too risky to play live .Today proves that management is not interested in stoking the share price . I trust that the longer it is going to be before an announcement is made , there will be a shorter period of time before the following announcement is made so as to give support to the upcoming announcement. Just because I have not realised a loss by selling my shares , it does not mean that I am not happy . As described by a poster last night the perpetual trade of small volumes has allowed the bigger businesses to slip under the radar and minimise their losses and gain when the situation changes , before we become aware . I say bring on a whopper of an announcement that will shatter those who are attached to their coat tails.Continue not to sell is my self advice as BRN is the real deal . I am patiently waiting and watching for the vertical line to the heavens on all our chartists posts shortly . Where are our chips manufactured?.

 

[Fact Finder]

The AKD 1000 is being advertised on LinkedIn and for the last 8 hours . BRN is below the $1.19c per share which a previous poster put us outside of the top 200 companies plus not a high enough average share price over 6 months . Looks like a constructed slide in share price when those with the tools to calculate that we were not going to be rerated have decided to carefully exit a percentage of their holding . I played the game of ‘ if I sold my shares today and bought them back in 5 days ‘ how many extra shares would I have . In each Phantom exercise I would have been in front . To play the game after today my feeling is that it will become too risky to play live .Today proves that management is not interested in stoking the share price . I trust that the longer it is going to be before an announcement is made , there will be a shorter period of time before the following announcement is made so as to give support to the upcoming announcement. Just because I have not realised a loss by selling my shares , it does not mean that I am not happy . As described by a poster last night the perpetual trade of small volumes has allowed the bigger businesses to slip under the radar and minimise their losses and gain when the situation changes , before we become aware . I say bring on a whopper of an announcement that will shatter those who are attached to their coat tails.Continue not to sell is my self advice as BRN is the real deal . I am patiently waiting and watching for the vertical line to the heavens on all our chartists posts shortly . Where are our chips manufactured?.

There is a saying about all boats rise and fall the same amount with the tide.
If Brainchip was the only share with a falling share price then it may indicate the ASX200 is off but as every share, bar one, on my watch list is down and the one that isn’t makes no sense and only has a market cap in the millions it is likely Brainchip has maintained its same relative position around 188 out of 200.

I would personally prefer that moving into the ASX200 then ASX100 occurs in the second half of 2022 when we are told income is going to ramp up.

Solid income and a developing PE will allow the more conservative end of the investment community to finally see the value proposition and this should reduce manipulation by the bigger institutional sharks that swim in the ASX200 and ASX100 waters.

My opinion only DYOR
FF

AKIDA BALLISTA

 

[Frank Zappa]

Agreed FF . I would very much like to see the top twenty shareholders at the end of trade and compare with a previously released recent one . That would show up the less conservative institutions.Thankyou for replying