Newsletter -14 February 2021

Australian share market updates for the week ending 14 February 2021

Contents:

  • Chart of the week;
  • Upcoming and recent IPOs;
  • Director trades;
  • Buybacks; and
  • Short sales.

Chart of the week

The CRB Commodity Index has surged from its April 2020 low, aided by massive global stimulus, economic recovery, and inflation concerns. Additionally, factors including metals being required for renewable energy infrastructure and electric vehicle batteries, has led some commentators to point to the start of a sustained commodities boom.

Upcoming Initial public offerings (IPOs)

Companies that have recently applied to the ASX for listing. Click here for a full list of upcoming ASX IPOs.

Airtasker Ltd (ASX: ART) is an online marketplace for local services, connecting people and businesses who need work done with people who want to work.

Cosmo Gold Ltd (ASX: CSM) owns and operates the Cosmo Newbery Gold Project near Laverton in Western Australia.

Bastion Minerals Ltd (ASX: BMO) is an Australian resources company focused on exploring for high-grade gold and copper in Chile.

Companies that commenced trading this week.

OzAurum Ltd (ASX: OZM) was established to identify and explore, with a view to potentially developing, two gold projects in Western Australia.

OZM raised $12,000,000 by the issue of 48,000,000 shares at an issue price of $0.25 per share.

The company listed on Monday at $0.195 and finished the week at $0.225.

BikeExchange Ltd (ASX: BEX) provides a platform to connect consumers with retailers of bicycle products and accessories.

BEX raised $20,000,000 by the issue of 76,923,076 shares at an issue price of $0.26 per share.

The company listed on Tuesday at $0.29 and finished the week at $0.255.

Auric Mining Ltd (ASX: AWJ) will explore and develop gold projects in the Widgiemooltha and Norseman regions of Western Australia.

AWJ raised $7,256,416.75 by the issue of 29,025,667 shares at an issue price of 0.25 per share and 14,512,827 quoted options exercisable at $0.40 per option expiring on Tuesday, 31 October 2023.

The company listed on Friday at $0.20 and finished the day at $0.19.

Singular Health Group Ltd (ASX: SHG) is a medical technology company focused on the development of medical software for the visualisation, manipulation and transfer of medical imaging data in 3D and virtual reality.

SHG raised $6 million by the issue of 30,000,000 shares at an issue price of $0.20 per share.

The company listed on Friday at $0.35 and finished the day at $0.38.

Director trades

Director buys can be a sign that those with the most insight into a company view its shares as undervalued. Knowledgeable “insiders” are the best placed to know what a share is really worth. One or two trades may not be significant, but a larger number by different directors can warrant further investigation.

Click here to purchase a spreadsheet of on-market ASX director trades for the last six months.

Companies with two or more directors buying and no sells in the last 30 days, not mentioned in previous newsletters.

Mithril Resources Ltd  (ASX: MTH) is a minerals miner whose main focus is the Copalquin Gold & Silver Project in Mexico. Mithral also has partnerships in four mineral projects in Australia.

Buybacks

A buyback, also known as a repurchase, is the purchase by a company of a portion of its outstanding shares. This reduces the number of shares on issue so increases the earnings per share, all else being equal. A company will usually buy shares back when they see them as good value. Click here for the latest buyback announcements.

No new buybacks announced this week.

Short positions

Shorting a share is betting the price will decrease. It can pay to check short positions in a share you are considering purchasing.

 Click here for a full list of shorted ASX shares.

The below table shows the twenty most shorted shares on the ASX. Data is lagged 4 days

“The history of markets is one of overreaction in both directions.” – Peter Lewyn Bernstein


 

Please note the information contained in this newsletter does not constitute financial advice. Information relating to any securities mentioned is not a buy or sell recommendation. You should always conduct your own investigations and make up your own mind regarding any course of action you may wish to take. The information presented has been obtained from original and published sources believed to be reliable, but its accuracy cannot be guaranteed. The entire contents are copyright. Reproduction in whole or part is strictly forbidden without the approval of the author. This information is not financial advice and does not consider your personal situation and we accept no responsibility for any claim, loss or damage as a result of the information in this newsletter or our website.

Sharp Investor owns ASX listed stocks: ACR, ARL, ALQ, BRV, CDX, CDXO, COL, CYP, DDR, DHG, EVN, EXR, FBR, FID, FRI, GGG, GOR, IGO, IRI, MGX, MNY, OZL, PRO, SBM, SRG, SXE, VXR, WSA, WTL

Past newsletters