Newsletter – 6 June 2021

Australian share market updates for the week ending 6 June 2021

Contents:

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

Chart of the week

The gold price has risen 12% since a low in March this year. Investors are looking to the precious metal due to inflation fears as global economies recover and the oil price rises. A lower USD and low rates are also contributing to the rise of the gold price.

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.

Mt Monger Resources Ltd (ASX: MTM) is a mineral exploration company focused on gold and other precious metals discoveries in Western Australia.

Burley Minerals Ltd (ASX: BUR) is a West Australian iron ore and base metals explorer and developer.

DRA Global Ltd (ASX: DRA) is a diversified global engineering, project delivery and operations management group.

Gold 50 Ltd (ASX: G50) aims to explore its projects in Arizona and Nevada for commercial quantities of gold, silver and other minerals.

WAM Strategic Value Ltd (ASX: WAR) will provide shareholders with exposure to a diversified equities portfolio, predominantly comprised of Australian listed investment companies and trusts, purchased at a discount to the underlying asset values.

Victory Goldfields Ltd (ASX: 1VG) will explore and develop the Victory Tenements and other gold projects in Western Australia.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Keypath Education Ltd (ASX: KED) assists its university partners in the design, development, launch, growth and support of online higher education.

KED raised $212 million by the issue of 57,172,708 CDIs at an issue price of $3.71 per CDI.

The company listed on Wednesday at $3.71 and finished the week on $3.26.

iShares Core MSCI Australia ESG Leaders ETF (ASX: IESG) aims to provide exposure to large, mid and small cap segments of the Australian market with better sustainability credentials relative to their sector peers.

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.

Invocare Ltd (ASX: IVC) owns and operates funeral homes, cemeteries and crematoria around Australia, New Zealand and Singapore.

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.

New Solar Energy Ltd (ASX: NEW) is an investment company that invests in solar power projects.

NEW announced an on-market buyback of up to 89,354,600 shares 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.

“I would say that financial markets are very inefficient, and capable of extremes of being completely dysfunctional.” – Jeremy Grantham


 

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: ARL, ALQ, ASB, BGL, 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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