Newsletter – 28 March 2021

Australian share market updates for the week ending 28 March 2021

Contents:

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

Chart of the week

Australia’s household wealth rose 4.3% over the December 2020 quarter to a record $12 billion. This was the highest quarterly growth rate since the December 2009 quarter. The main contributor was rising house prices, helped by low rates and government assistance programs. Rising superannuation balances and directly held shares also contributed to the increase in wealth.

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.

Black Canyon Ltd (ASX: BCA) was established for the primary purpose of acquiring, exploring and developing mineral deposits in Australia and overseas, with a recent focus on base metals.

Mighty Kingdom Ltd (ASX: MKL) is Australia’s largest independent video game developer.

EP&T Global Ltd (ASX: EPX) works to reduce energy consumption and carbon emissions for businesses operating in the built environment. EP&T has technology that will extract, analyse and report Internet of Things (IoT) data to reduce building energy use.

Qmines Ltd (ASX: QML) is an Australian based exploration and development company. The company owns four advanced copper and gold projects located in Queensland.

NickelX Ltd (ASX: NKL) is primarily focused on raising seed capital to fund the company’s activities; and exploring potential opportunities to acquire projects relating to nickel, copper and cobalt in multiple jurisdictions. The company’s current focus is exploring nickel and gold in Western Australia.

Last weeks’ IPOs

Companies that commenced trading on the ASX last week.

Medallion Metals Ltd (ASX: MM8) is a resources exploration and development company which owns two prospective West Australian projects with a focus on precious and base metals.

MM8 raised $12,500,000 by the issue of 50,000,000 shares at an issue price of $0.25 per share and 25,000,000 quoted options exercisable at $0.35 per option expiring on Tuesday, 31 January 2023.

The company listed on Monday at $0.29 and finished the week on $0.245

Airtasker Ltd (ASX: ART) is an online platform that brings together workers, and customers who need jobs done.

Airtasker raised $83,652,869 by the issue of 128,696,722 shares at an issue price of $0.65 per share.

The company listed on Tuesday at $1.010 and finished the week on $1.43

Mad Paws Ltd (ASX: MPA) offers pet owners access to a range of pet walking, pet sitting, and pet care services via its community of pet service providers registered on the Mad Paws marketplace.

MPA raised $12,000,000 by the issue of 60,000,000 shares at an issue price of $0.20 per share.

The company listed on Friday at $0.285 and finished the day on $0.24

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.

Mercury NZ Ltd (ASX: MCY) generates electricity from 100% renewable sources – hydro, geothermal, wind and solar. It also sells electricity to customers through its retail brands – Mercury and GLOBUG.

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.

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.

“That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.”  –  Aldous Huxley


 

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, 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