I think it will be due to market cap and the index the fund is tracking.

In this case it will be the MarketVector index.

An article appeared yesterday about the rebalancing of the index which will affect the ETF

https://www.marketindex.com.au/news/2-asx-listed-companies-set-to-join-global-green-etfs-marketvector

What is most concerning is that the new CEO hasn't bought on market during this time. Had that happened, I would consider buying or topping up.

Also it seems ASM is putting more work on their metallisation technology than getting Dubbo up and running.

I think it's more likely to fall out of the ASX300. So there may be a domino effect. We will see soon.

They have rules about market cap and how the index is put together, but they must also have rules about how they buy and sell, etc.

For example, if you know they have to rebalance the stock out, and you know they have to sell between x and y day, that's a fair advantage as it's a forced seller in the market. I remember the buying happened earlier than I thought last time. I'll have to do some research at some point.

I think my reading is that at least for the moment Dubbo seems to have hit a funding block. They seem to be close, but just not quite there in terms of the big buyers. I'll also admit the project isn't as attractive as I'd like. I think there has been some changes in the price of the metals since I last posted stuff on Dubbo. I think I probs need to start tracking these every few months. (They are hard to)

I could be wrong in this case @Stuey727 but my experience has been that fund managers, particularly microcap and nanocap specialist fund managers who understand the liquidity constraints will massage their buys and sells through the market trying not to move the price too much, but an ETF usually doesn't bother - they just buy to add and sell to exit, and if that moves the price a heap, so be it. This might not be true of all ETFs but it is true of most, in my experience. I have particularly noticed this with gold companies that have been added or removed from gold miner ETFs. I think it's true to say that ETF buying and selling is much closer to an automatic, or fully automated process, compared to fund managers or retail investors who are concerned with entry and exit points. ETFs are just "in" or "out" and they buy the weighting that they want, and when they exit they sell the lot. When they're adjusting weightings, such as during rebalancing, they are just looking at numbers, so buying or selling x shares. Again, price doesn't tend to matter to them.

With companies that are still in the development stage, i.e. they do not have regular revenue and earnings yet, they will get added to thematic ETFs (meaning ETFs that invest in a theme, such as a battery metals ETF or HACK which invests in cybersecurity companies) based on some list somewhere that says these are the top x number of companies for that theme on this particular market (such as the ASX, being the Australian sharemarket), and they may use index inclusion as a filter, such as only companies in the All Ords or the ASX300 index, or they may use market capitalisation as a filter, i.e. no companies worth less than $300m, and when one of those filters knocks a company name off their list, they just sell all of their shares in that company. It may happen, but I have not heard of ETFs selling over a period of days. Once they decide to exit a stock, they will just sell their entire shareholding, immediately. In my experience. And that's also how they tend to buy, so it can move some companies' SPs a LOT.

So in that respect, IF you know that's going on, or IF you know WHEN that's going to happen, there is likely to be opportunity there - particularly in smaller companies with limited liquidity where large buys and sells tend to move the price a lot, but knowing when they are going to get in and out is not something that I have found easy to work out, so I don't tend to bother with it or worry about it. By the time I've worked it out, it's already happened.

Like I said, could be ETFs out there that don't work that way, but in my experience it tends to be a fairly automatic buying and selling process, very unlike the way a smart fundie would do it.

Just on that same topic @Stuey727 , I talked this evening over in the gold thread about the likely cause of the CMM (Capricorn Metals) share price falling -11.69% today (or -38c from $3.25 to $2.87), when they are about to be promoted into the ASX200 Index on Monday, as well as how Van Eck sold so much of RSG in a single day this time last year. These ETF managers really don't seem to care too much about the share price of these companies, particularly when they're exiting or reducing their positions.

There is some weird stuff happening. JLG (-4.42%), KAR (-4.74%) and LOV (-4.58%) are all also being added into the ASX200 index, and they all fell by more than the market today. But CCX, CUV & JHG were all up today (not by much but they were in the green on a negative day) and all three are being removed from the ASX200 index on Monday.

So are EML (-4.59%) and ZIP (-4.65%), but their falls seem more sector-specific to me, with SZL also down -5% and HUM down -4.85%. There's always one outlier however; SPT was actually UP +3.7% today...

Pizza has arrived. Gotta go...

Ah, it seems to have cut the rest of my post off. Essentially as it's entering the ASX 300, this is potentially a good spot to lighten my exposure to the company. I was wondering:

Does anyone know much about ASM or how to value it? 

Does anyone know much about what typically happens to a company's share price when it enters the ASX300 - how many shares need to be bought, etc.? 

I'll aim to do some research over the next few days/weeks/months and will post up what I find. 

@ Stuey727

Would love to hear your discoveries... I have always wondered how this works.

I didn't end up doing more research sorry.

From what I observed though, the fund bought before I thought they were going to and sold some when I didn't expect it. It seemed to cause some major share price fluctuations. I think that the major spike there was caused by the fund accumulating - the drop off after potentially also the fund selling some - it seems that they sometimes need to rebalance or people buying or selling the etf affects it or something.

I'm not much of a fan of technicals, but it's convinced me that they are worth looking at when taking major positions. Sentiment too seems to be worth considering - buy when it's bad, for the most part.