Updates from the Australian share market for the week ending 27/10/2019

 

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Contents: IPOs, director trades, buybacks and short sales for the week.

 

Chart of the week

 

There has been some heavy selling of the high priced WAAAX stocks lately. WiseTech has faced attacks from short seller J Capital and regulatory concerns have again impacted Afterpay.

 

Initial public offerings (IPOs)

 

Companies that have recently applied to the ASX for listing. See the website for more details.

 

Terragen Holdings Limited is a developer of ag-bio solutions whose core technology platform addresses soil health and productivity, animal health and nutrition without relying on chemical-based fertilisers, pesticides and antibiotics.

Primewest is a private real estate funds management businesses. It manages a range of unlisted property syndicates and funds on behalf of wholesale and institutional investors.

 

Companies that commenced trading this week. 

 

Intega Group Holdings (ASX: ITG) is a quality, testing and measurement business providing construction materials testing, subsurface utility engineering services, and quality assurance for energy companies.

The company was spun off from Cardno Limited (ASX: CDD). Spin-offs can provide good investments and may be worth considering.

The company listed on Tuesday on a deferred settlement basis and began trading at $0.48 finishing the week at $0.54.

 

PropertyGuru, the private equity backed online property marketplace withdrew from listing.

 

Insider trades

Insider trades are the purchase & sale of shares in a company by the company’s directors. On-market and most off-market are counted. 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.

 

See the website for more details, such as the price and quantity of shares bought. For a full list of director trades by company over the last year, see the members section.

 

Companies with at least three different directors buying recently and no sells over the last year are listed below.

 

 

Althea Group Holdings Ltd (ASX: AGH) is an Australian licensed producer, supplier and exporter of pharmaceutical grade medicinal cannabis.

 

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 its shares on the open market and increases the Earnings Per Share (EPS) of the remaining shares, all else being equal. The company will usually buy shares back when they see them as good value. For the latest buyback announcements see the website.

 

Blackwall Property Trust (ASX: BWR) is an open ending real estate trust that invests in real estate income producing assets.

 

The trust announced an on-market buyback of 10% of units on issue over twelve months.

 

 

Dexus (ASX: DXS) which has a portfolio of office and industrial real estate, announced plans to initiate a new on-market buybacks of up to 5% of shares over the next 12 months. Dexus intends to fund the buy-back from existing debt facilities.

 

Short positions

Shorting a stock is betting the price will decrease. See the full list of shorted stocks here. The member’s section has Five Day and Year to Date changes in short sales.The below table shows the top twenty most shorted stocks on the ASX. Data is lagged 5 days.

 

 

Nearmap Ltd (ASX: NEA)

 

“Everyone has the brain power to make money in stocks. Not everyone has the stomach” – Peter Lynch

 

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 take into account 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.

The author owns ASX listed stocks: ACR, ALQ, CDX, CDXO, CGO, DHG, EVN, FBR, FID, FRI, GOR, IRI, MGX, MNY, OZL, PRO, QIN, SF1, SFL, SRG