developbc wrote: This is very quick simple explanation summary on the effect of PYR rise in mkt cap within the TSX Venture Composite Index rebalancing as their % weight increases will cause buying pressure on sp.
This is really incredible for PYR moving forward!
Currently Pyrogenesis is now in the TOP 10 - This is extremely relevant to upward sp pressure.
[Top 10: https://web.tmxmoney.com/index_sector.php?qm_symbol=^JX ]
Quick Facts:
S&P/TSX Venture Composite Index(^SPCDNX) - $721.24 WEIGHTING METHOD - Float - adjusted market cap weighted
REBALANCING FREQUENCY - Quarterly Jan/April/July/Oct
CALCULATION FREQUENCY - Real Time
NUMBER OF CONSTITUENTS - 390
WEIGHT LARGEST CONSITUENT[%] - 6.2 WEIGHT TOP 10 CONSITUENT[%] - 24.7
Salient facts and relevance to PYR stock share price: - This index is market cap weighted and as PYR performs well - their weight % as a constituent rises and thus will cause the index/funds that mirror this index to rebalance their portforlio to reflect the most recent weight and thus need to add PYR shares to make up for any shortfall.
- Rebalancing effective date is 3rd Friday of the first month of that quarter in review.
- For immediate recent example...we saw that July 17,2020 was the effective date of the rebalancing and sp did start to drift upwards from July 14th previous day close of $4.35 for the next 14 day trading days to $5.57 recent close. As you will see also clearly demonstrated from the previous quarter.
- For absolute simplicity, this index and any other fund that mirrors the S&P/TSX Venture Composite Index must by their charter buy more of the constituent stock they are running light on to match last quarter review % weighting and in this case PYR as it is rising in % of the index itself.
Side note: More and more investors buy index vs funds bc they are easy, lower fees, less cheating by corrupt fund mgrs etc... With all the exciting developments and potential contracts on the horizon...things look extremely bright and exciting for PYR!!!
For those who want to read more: Based on the S&P/TSX Venture Composite Index Methodology
(Read more here:
https://www.tsx.com/resource/en/63 )
Eligibility Factors Market Capitalization: To be eligible for inclusion in the S&P/TSX Venture Composite, a security must meet the following criteria: At the end of every calendar quarter, a security must have a relative weight of at least 0.05% of the total capitalization of the S&P/TSX Venture Composite to be in the index, after taking into consideration all share changes, additions and deletions.
Any security that does not qualify because it has not met the minimum 12-month listing requirement (as indicated in the Eligible Securities section below), may qualify for inclusion in the S&P/TSX Venture Composite if it has been listed for at least six full calendar months, as of the effective date of the quarterly revision, and is ranked between 1 and 100 of the current S&P/TSX Venture Composite securities, on a float-adjusted quoted market value (QMV) basis, as of that prior month-end.
Index Calculations: On any given day, the index value is the quotient of the market capitalization of the index’s constituents and its divisor. Continuity in index values is maintained by adjusting the divisor for all changes in the constituents’ share capital after the base date. This includes additions and deletions to the index, rights issues, share buybacks and issuances, and spin-offs. The divisor’s time series is, in effect, a chronological summary of all changes affecting the base capital of the index. The divisor is adjusted such that the index value at an instant just prior to a change in base capital equals the index value at an instant immediately following that change.
Rebalancing The entire constituent list and their representative shares for the S&P/TSX Venture Composite will be reviewed at each calendar quarter ending in March, June, September and December. The new index composition will be announced within the first two weeks of the following quarter and becomes effective after the close of business on the third Friday of the first month of that quarter. The review procedures will be as follows:
- All TSX Venture Exchange eligible candidates, as at quarter-end, will be combined with current index constituents to form the index universe.
- All securities in the index universe will be ranked by their float-adjusted market capitalization, using their quarter-end shares and last traded board lot price.
- A cumulative market value will be calculated for each security, starting with the largest security and concluding with the smallest security in the universe.
- A relative weight for each security will be calculated with the assumption that the company is the smallest security in the universe.
- Any security with a relative weight greater than or equal to 0.05% will either remain in the index or, if it is not already in the index, will be added to the index.
- Any security previously in the index, with a relative weight less than 0.05%, will be removed from the index. All changes resulting from the above exercise will become effective after the close of business on the third Friday of the month following the calendar quarter end. For example, the March review will become effective after the close of business on the third Friday of April.