Newsletter – 21 March 2021

Australian share market updates for the week ending 21 March 2021

Contents:

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

Chart of the week

Better than expected employment data in February showed a continued v-shaped recovery in the labour market. Employment increased by 88,700 people (0.7%) to 13,006,900 people. The unemployment rate fell from 6.3% to an 11-month low of 5.8%.

Source: ABS

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.

Lynch Group Holdings Ltd (ASX: LGL) is a flower grower and supplier.

Australasian Gold Ltd (ASX: A8G) was established to identify and explore for gold and base metal projects, primarily in Australia.

Companies that commenced trading this week.

Bastion Minerals Ltd (ASX: BMO) currently focus on exploration for, and subsequent development and mining of, gold, silver and copper deposits at the Capote, Garin and Cometa projects in Chile.

BMO raised $5,000,000 by the issue of 25,000,000 shares at an issue price of $0.20 per share.

The company listed on Tuesday at $0.20 and finished the week on $0.215.

Tulla Resources Ltd (ASX: TUL) is a gold development and mineral exploration company. Tulla Resources’ key asset is a 50% interest in the Central Norseman Gold project, a historical gold mine located near the town of Norseman in the Goldfields of Western Australia

TUL raised $78,300,000 by the issue of 87,000,000 shares (to be settled on the ASX in the form of CDIs) at an issue price of $0.90 per CDI.

The company listed on Thursday at $0.69 and finished the week on $0.60.

Firebird Metals Ltd (ASX: FRB) engages in exploration and development of mineral properties in Australia. The company’s main asset is the Oakover manganese project.

FRB raised $5,500,000 by the issue of 27,500,000 shares at an issue price of $0.20 per share.

The company listed on Thursday at $0.46 and finished the week on $0.545

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.

Aeris Resources Ltd (ASX: AIS)has two operational assets, the Tritton Copper operations in New South Wales, and the Cracow Gold operations in Queensland.

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.

Timah Resources Ltd (ASX: TML) through its subsidiary, Mistral Engineering Sdn Bhd., generates biogas renewable energy in Australia and Malaysia. It owns and operates a biogas power plant with approximately 3.5 megawatts located in Sabah, Malaysia.

The company will buy back a maximum of 1 million shares on-market over twelve months.

Short positions

Shorting a share is betting the price will decrease. It can pay to check short positions in shares 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. Highlighted companies are new entrants from last week.

“Someone else will always be getting rich faster than you. This is no great tragedy.” – Charlie Munger


 

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, ASB, 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

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