PyroGenesis Inc T.PYR

PYR to be included in one of the Russell indexes???

[ScienceFirst]

Another well documented one from MidTownguy on CEO.ca.  

Don't know if we would qualify this year, but definitively next year.


Something interesting about to happen in terms of catalysts. In May and June each year, the Russell Indexes get rebalanced (or "reconstituted", using Russell's terminology). Russell will start announcing additions and deletions to the Russell 1000 (the biggest companies from the Russell 3000, which lists the 3,000 biggest US-traded companies) and the Russell 2000 (the smallest cap companies from the Russell 3000) at the end of this week.

The Russell reconstitution days are traditionally the busiest volume days of the year across the markets. Why?

Because the Russells are one of, if not THE, most closely followed indexes (after the S&P 500) by mutual fund managers and major investors. And when a stock gets added to the Russells it is mandated to be added to dozens of funds that track the Russells as part of their composition. For reference, in 2020, USD$9 trillion in holdings was benchmarked to Russell’s U.S. indexes by both passive instruments and active fund managers.

[Sources: https://www.barrons.com/articles/how-investors-can-play-the-rebalancing-of-the-russell-indexes-51590158778

https://www.nasdaq.com/articles/what-small-caps-should-know-about-the-russell-rebalance-2020-06-22]

There have always been theories that stocks that are about to be added to the Russells, but which are sitting at or near their all-time-highs, get intentionally pushed down in the months prior to the Russell reconstitution -- because if the funds are going to be forced to buy a company's shares, they don't want to do so at a high-water mark. They want to make money, so they push it down prior to addition. So, alot of your favourite newly listed or growth stocks that have seen major downturns of 50% or more from their highs [ahem], may be some of those being pushed down because of upcoming Russell inclusion.

There are three key dates to note:

- May 7,

the ranking day, where all eligible securities that meet the criteria and various investability rules are considered for inclusion. This is not made public.

Friday June 4,

when preliminary lists of additions and deletions to the indexes are communicated to the marketplace (with additional updates on June 11 and 18th).

Friday June 25,

when final changes go into effect after the close of trading that day.

So... there is a very, very good chance PYR makes the Russell 2000 (median MC of USD$1.060Bn; PYR MC currently USD$0.910Bn), or at least their major sub-index, the Russell Microcap.

As a result, buying power will have to move in as those funds that track the Russells add PYR because they are mandated to. Watch for increased volume and potentially major SP run-ups for PYR on Friday the 4th/Monday the 7th sessions if PYR is included in the first summary drop on the 4th, then again on the subsequent Friday/Monday sessions of the 11th and 18th. Then finally, the gigantic trading day of Monday June 26 (or in the June 25th after-market).

[Source: https://www.ftserussell.com/resources/russell-reconstitution]

[Source: https://www.nasdaq.com/articles/what-small-caps-should-know-about-the-russell-rebalance-2020-06-22]