Well said, I agree 100%.
Printable View
just some more of the same data
A new Xero Business Insights Report, about the performance of small businesses in July, shows good growth in sales and jobs but not as strong as in June.
Xero’s small business index fell to 122 points from a record high of 127 in June 2021, but still well above the average, 100 points.
Usually the index compares data from one month with the same month the year before, but because July 2020 was impacted by the Covid-19 pandemic Xero is using annualised two-year growth to account for base effects.
Small business sales rose 6.6 per cent in July after a strong 11.9 per cent rise in June.
Retail was the strongest performing sector in July, the third month in a row, with sales growth of 11.5 per cent. Hospitality sales in July were 9.5 per cent higher, the fifth consecutive month of growth, the report said.
https://www.stuff.co.nz/business/pro...-from-lockdown
I know there is a discussion re WHS entering index. According to data from For batt not yet.
S&P/NZX Index Insights
Nothing Changes When in Lockdown
We pick that there will be no changes for the upcoming S&P/NZX September 2021 quarterly index review (headline
indices). Official outcomes of the review will be announced close of market Friday, 3 September 2021, with an effective
date, close of market Friday, 17 September 2021.
Figure 1. September 2021 Review: The Forsyth Barr Pick
Index Enter Exit Expected Weight (rank)
S&P/NZX 10 no changes expected n/a
S&P/NZX 20 no changes expected n/a
S&P/NZX 50 no changes expected n/a
S&P/NZX 50 Portfolio no changes expected n/a
Source: Forsyth Barr analysis
The current status
Figure 2 outlines the current rankings for inclusion/exclusion for the benchmark S&P/NZX 50 indices. At this stage we see no obvious
near term changes ahead.
The six-month average market cap automatic entry level to the benchmark index is currently above $455m with the exit level below
$265m. Currently, the lowest ranked index member is Sky Network TV (SKT) whilst the highest ranked non-member is The
Warehouse (WHS).
Figure 2. . Current Rankings for S&P/NZX 50 Index Inclusion/Exclusion
Ranking Code Current status 6-mth average price 6-mth average market cap
42 NZX S&P/NZX 50 Member $2.00
43 VGL S&P/NZX 50 Member $2.20 $502.73m
44 (entry level) FSF S&P/NZX 50 Member $4.24 $455.06m
45 RBD S&P/NZX 50 Member $13.92 $434.14m
46 SAN S&P/NZX 50 Member $4.78 $392.94m
47 WHS $3.48 $386.16m
48 ERD $5.46 $375.34m
49 HLG $7.32 $349.37m
50 SML S&P/NZX 50 Member $3.57 $320.31m
51 THL S&P/NZX 50 Member $2.48
52 NPH S&P/NZX 50 Member $3.39
53 SKT S&P/NZX 50 Member $0.17
54 BGP $5.74 $293.90m
55 MFB $1.46 $265.58m
56 (exit level) TRA $3.88 $252.52m
57 CVT $3.30 $177.95m
Many thanks for sharing. Well worth noting that these companies that are both current constituents of the NZX 50 are in play. ZEL is highly likely to be subject to a takeover early in 2022 and SKT is "in play"
Apart from that WHS is currently 47th based on a share price of $3.48 but at $3.70 it would be $410.6m making it 46th and getting a lot closer to the $455m.
Further, I think WHS has tremendous capital gain potential and will likely make it into the NZX50 under its own steam in 2022 even in the very unlikely event that neither ZEL or SKT are taken over in 2022.
In summary I think there is a very strong probability WHS will get included in the NZX50 sometime before the end of 2022.
yes the elimination of ZEL (if the takeover is successful) was the impetus for raising the prospect of inclusion. That commentary below just confirms the most likely candidate is WHS. Also with SKY TV having absolutely consistently horrid share price performance being the lowest candidate for expulsion from the index, I think WHS has a pretty good shot. Sky has also signaled is is going to do a capital return to shareholders once it finalizes the sale of its Auckland studio campus, which will further impact its market cap to the lower side.
Share consolidations like SKT are undertaking are usually unhelpful to market cap too.
All that said, I'm not investing for NZX50 inclusion, that would simply be a nice decorative item on top of a very fruity and well iced cake, so too speak. WHS shares are on compelling metrics and I think they have excellent capital gain potential.
Can someone remind me again what the $386m next to WHS in that list represents?
in the real world WHS is worth $1.28 Billion market cap, which is exactly $1 Billion higher than SKT $280 million market cap.
Its what I believe they call the free market float. Takes out huge longstanding large shareholding positions like the Tindall foundation stake. Sorry mate I don't know the fine nuances of exactly how they determine what shares are free market and what aren't but I am sure someone else on here will be happy to provide further clarity.
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