Hi umop3pisdn, as Admin says below - that was entirely due to the consolidation which resulted from AVH moving from FPO (fully paid ordinary) shares to CDIs that are based on the AVH primary listing on the NASDAQ now (in the USA), and the associated SP (share price) rise (the AVH SP rose by a factor of 20 times, although they are no longer technically shares, they are CHESS Depositary Interests - known as CDIs - but we generally refer to everything that is listed on the ASX as shares - as a general term), which temporarily made it look like the weighting of AVH in the Strawman community had risen by twenty times. That has all been fixed now. If you click here, you will see that - as of right now (11:48am Eastern time), no Strawman member has added AVH to their portfolio for two months. In fact there has been no AVH trading activity at all here for two months (buys or sells). Plenty of discussion, but no trading, so the move you refer to was just an aberation due to the consolidation of the shares - where there are now 95% less shares on issue here - and they are now CDIs not shares - and their individual value has risen aprox. 20 times. As explained further below, the total dollar value of each holder's AVH position remains roughly the same but they just hold a lower number of CDIs (than the shares they held before) and the value of each is now greater, but it all works out roughly the same.
Andrew,
I noticed on Friday the Strawman Index added AVH at a 28.8% weighting! Im very interested in hearing about the expectations for this company?
I noticed lots of people on the leaderboard have 3 digit gains because they held AVH before the adjustment. So it looks like some holdings need to be readjusted to take into account the consolidation.
As part of the switch from FPO (fully paid ordinary) shares here on the ASX to CDIs - due to their primary listing now on the NASDAQ instead of on the ASX - they have only issued 5 CDIs for every 100 old AVH shares that people held. Or 1 for 20. That was to better align the share price here with where the NASDAQ shares were trading over there. That means that while an AVH CDI is now worth around 20 times what AVH were trading at around a week ago (43c on 23-Jun-2020, around $8.60 today), shareholders only own one twentieth of the CDI's that they held in shares. For example, if you owned 1,000 AVH a week ago, you now own only 50 AVH CDIs, but those 50 AVH CDIs are now worth around 20 times what AVH was trading at before the conversion, so shareholders own the same value of AVH, even though the quantity and price have both changed.
This is explained further in some recent media articles:
https://themarketherald.com.au/avita-medical-asxavh-gains-approval-to-redomicile-2020-06-23/
https://www.fool.com.au/2020/06/30/avita-therapeutics-share-price-climbs-8-4-as-company-redomiciles/
https://www.sfvbj.com/news/2020/may/11/avita-move-headquarters-us-seek-nasdaq-listing/
And some further reading on the opportunity:
https://rogermontgomery.com/avita-medical-a-small-cap-with-big-potential/
And some scuttlebut from last year: https://www.afr.com/rear-window/bell-potter-s-skin-in-avita-medical-s-game-20191114-p53alk
Disclosure: I don't currently hold AVH CDI's, but I have held AVH shares in the past, and I think they're a solid company with a bright future. For another example of a healthcare or biotech company who has made this same move - of originally being an Australian company but moving their headquarters to the US and their primary stock exchange listing to the NASDAQ exchange in the US, you don't have to go past Resmed (ASX: RMD). For an example outside of the sector, there is also NWS (Newscorp), who I like a lot less. It is generally done when a company do most of their business in the USA, are headquartered there, and feel like they are going to generate more investor interest by being listed on a US exchange, particularly the tech-heavy NASDAQ which has made new all-time highs this year - in the past month - AFTER the worst of the COVID-19 news (so far) had been digested in March, making it almost certainly the best performing market in the world this year. While many thought that tech (like the FAANG stocks) were overvalued and primed to fall hard during a crash or decent correction, most of them have held up remarkably well and many have gone on to post new highs. The NASDAQ is thought of as the home of most of the fastest growing global tech and biotech companies and the bulls love it. It is understandable why a company like Avita, at this pivotal point in their journey, would see a primary NASDAQ listing as something worth doing, and have done it.
P.S. I note that NABTrade, Commsec and the ASX have all adjusted the old AVH share prices (prior to the CDI conversion) now so that their charts of the AVH share price don't spike up +2000% with the 1:20 conversion, so they've taken the share consolidation into account within those charts. However, if you go to "Trade History" under AVH within Commsec (or the equivalent pages on other sites), you still get the accurate real numbers for the days in question, such as the 43 cps closing price on 23-June-2020.