cosors
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I was able to understand the articleI have to disagree with you here Corsors.
As FactFinder said..
"Shorting should be banned fullstop but at the very least pre revenue companies should be protected"
Pre-revenue companies, have a "natural" protection from shorters, if not included in the ASX300 or ASX200, because the shares to lend to them, are just not available in large quantities.
This is the Time and opportunity, for them, to raise funds, while they are still pre-revenue.
If their market capitalisation, forces them into the Big Boys Club (ASX300/200) this period of protection disappears and it's open slather, for the wolves to prey on the young "defenseless" lambs..
The author's original "complaint" was about the "quality" of the index, but I can see, how a young company, would want to avoid inclusion, until it was "ready" had building revenue and was profitable.
Just my opinions and happy to differ..
Quite apart from the fact that too little is said about profit.
So this exclusive club should only be for companies that fulfil these two thresholds, thus further cementing the model of this exclusive society?
I fully agree that it was too early for BRN. However, this is not because of the value that lies dormant in this company, but because of the existing system. I was very surprised that Brainchip was repeatedly denied an exit. My naive thought, and I really don't know much about such things, is why BRN wasn't downgraded when it was the time to.)
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I simply don't trust this system and don't think it is conducive to healthy growth. Investment in the future is not just debt. A discussion that is very topical here in Germany in these days.
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Regarding the second threshold: no turnover? That was and is not correct. Bad journalism. So how much turnover is appropriate for the 200. Maybe that explains one of my concerns.
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