Share price value vs. the All Ords

[mattryanshares]

I see at lot of different topics on the value of shares and I see people in the stocks threads saying that a share is user valued for x and y reasons.

My question is as the Aussie share market has taken a tumble over the last few days does this mean that those undervalued stocks are now more of a bargain? Or does the asx 200 and all ord's value come into the value of a stock??

 

[prawn_86]

Re: Share price value v's the all ord's

Or does the asx 200 and all ord's value come into the value of a stock??

Vice versa. The indexes are simply a concept of all the stocks that make it up. You will notice that stocks are added and removed all the time to indexes, hence they contain surviorship bias as poor performers are removed from the indexes

 

[burglar]

Re: Share price value v's the all ord's

... does this mean that those undervalued stocks are now more of a bargain?

If, and only if, correctly found to be undervalued, those stocks are now more of a bargain.

And who is smart enough to know.

 

[Tysonboss1]

Re: Share price value v's the all ord's

The asx200 and all ordinaries are indexs, the indexes are assigned a point value that tracks the share prices (by market weight) of all the members of that index.

so if the market capitalisation of the asx 200 is $X Billion dollars the index will be 6,000points, if the capitalisation of the companies drops by 50% the index will be worth 3,000 points.

At any one time some companies will be over valued and others undervalued.

But in general the asx200 @ 3,000 points would be better value (safer prices with higher yield) than the asx200 @ 6,000points (higher risk of corrective falls with lower yield).

 

[Tyler Durden]

This might sound stupid, but is there anywhere we can see which companies just fell in or out of the ASX200? Like, is there a real time thing for that?

 

[professor_frink]

This might sound stupid, but is there anywhere we can see which companies just fell in or out of the ASX200? Like, is there a real time thing for that?

This page is meant to show the rebals for our market, but I can't get it to load:

http://www.standardandpoors.com/ind...index=sp-asx-200&type=rebalancing-reconstitut

S&P will have the data on this, but it's not worth contacting them. They don't want to hear from small investors/traders.

 

[awg]

This page is meant to show the rebals for our market, but I can't get it to load:

http://www.standardandpoors.com/ind...index=sp-asx-200&type=rebalancing-reconstitut

S&P will have the data on this, but it's not worth contacting them. They don't want to hear from small investors/traders.

The page and data seem to have changed since I last used it?

They updated quartely and listed who would be in and out before the new index date, based on market cap at their cutoff date.

Unfortunately for the private investor, hedge funds seem ahead of the game here, and they seem to me they buyup early and offload to the index funds etc, causing some unusual price fluctuations

 

[Tysonboss1]

Heres some of the basic info.

http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3DFactsheet_SP_ASX_200_A4.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243767833621&blobheadervalue3=UTF-8

The top ten companies make up 52% of the weight,

BHP Billiton Ltd 12.78% 1.00 Materials
Commonwealth Bank Australia 7.43% 1.00 Financials x Property
Westpac Banking Corp 6.63% 1.00 Financials x Property
National Australia Bank Ltd 5.07% 1.00 Financials x Property
ANZ Banking Group 5.06% 1.00 Financials x Property
Telstra Corp Ltd 3.37% 0.89 Telecommunication Services
Wesfarmers Ltd 3.20% 1.00 Consumer Staples
Woolworths Ltd 3.06% 1.00 Consumer Staples
Rio Tinto Ltd 2.88% 0.72 Materials
Westfield Group 2.34%