Xro - xero

[David Hardman]

Lifted from http://www.asx200.com/about/

A security must meet certain criteria to be eligible for inclusion in the S&P/ASX 200 index.

1 – Eligibility
A security must be listed on the ASX, and must be an ordinary or preferred equity stock (e.g. no bonds, warrants or convertible stocks).

2 – Market Capitalisation
A security must be of adequate size to be considered institutionally investable. The size criterion used for the S&P/ASX 200, is based on the average daily market capitalisation of a security for the previous six months. When this figure is compared to its peers, a security must meet an arbitrary minimum ranking benchmark.

3 – Investable Weight Factor (IWF)
Securities carry different weights in an index depending on their size (i.e. the size of a company directly correlates to the impact it will have in the movement of an index). The influence a stock has on the underlying index is dependant on its IVF. The IVF is the float-adjusted portion of a company’s equity. Therefore, shares owned by company founders, directors, government agencies, or any “strategic holdings” (e.g. longer-term holders with greater than 5% of issued shares) are excluded from the IVF.

4 – Liquidity
A securities liquidity is measured not in absolute terms, but relative to its peers. The formula used is:

RELATIVE LIQUIDITY = STOCK MEDIAN LIQUIDITY / MARKET LIQUIDITY


Where:

Stock Median Liquidity is the median daily traded value of a stock, divided by its average weight-adjusted market capitalisation for the previous six months.

Market Liquidity is the market capitalisation weighted average of the Stock Median Liquidity for the 200 constituents.

Note: The above criteria are used for inclusion into the index, and not for continued membership. As low index turnover is important, a security in the index may on occasions violate one or more of the selection criteria without being removed.

[CJ]

I think the XRO board will be watching this response to the capital raise and be accelerating their US listing plans (if they weren't accelerated already). I know they said US$100m is the number they wanted.. but now I'm pretty sure they are going to line themselves up as soon as that number comes into view. I think a NASDAQ profile and listing would cement the company in the USA - it's a marketing strategy as much as anything else.

The $100m target is the requirement to get onto the big board of the NASDAQ (from memory), otherwise they end up on the smaller board - ie like the difference between the NZX and NZAX. The threshold is lower for profitable companies which is why DIL can look to list before hitting that target.

[Shore]

Oh ok - didn't know it was an actual requirement.. thought it was more something they wanted to achieve so that they could list with some credibility & weight behind them.

[Toasty]

What happens to the NZX and ASX listings if a NASDAQ listing happens? Noob question?

[apac]

Anyone want to guess what it will close at today? And tomorrow? My guess 2550 today 2620 tomorrow

[apac]

A more interesting one would be what will it drop to next week if it drops.

[bobxia]

i can't concentrate on my work at all, so just play with my calculator.

Salesforce has 3.5b annual revenue, 31b market cap (not making profit yet).

Xro has 100m revenue (roughly), and 3b mkt. cap. So if xro's revenue is doubling every year, in 5 year it's 100x2x2x2x2x2=3.2b.This is suggesting mkt cap to be around 30b in 5 years, and therefore SP $250. Discount that by 20% p.a. to today, so it's worth $100 now.

This is only for entertaining purpose.

[Shore]

@apac - yes interesting to know what the new floor will be. at first i thought $18.15.. but then forbarr have gone out there and said $20.30 (which in itself is meaningless but its a number)... but with all this volume and the price going up and up.. its begs the question whether the floor will become $3b ($23.50)? until the next set of news that is..

[apac]

@Shore We could be still below floor. Congrats on making a house this week. I've made a car not too bad either

[Toasty]

Share price may be climbing but the productivity loss to the country is probably immense. The GDP will show a massive drop for the last three days and shareholders refresh their screens and play with their calculators. Apparently its now worth $100. I read it somewhere. Gospel!

"Discount that by 20% p.a. to today, so it's worth $100 now."

Back to my question. What happens to the NZX and ASX listings if a NASDAQ listing happens? Noob question?