Newsletter – 1 August 2021

Australian share market updates for the week ending 01 August 2021

Contents:

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

Chart of the week

Car prices in Australia have risen due to overseas pandemic-related production disruptions, coupled with a current shortage of semi-conductors, a critical part of car electronics. Demand has also increased as people choose to drive instead of using public transport due to COVID-19 fears.


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.

Li-S Energy Ltd (ASX:LIS) has developed a new lithium-sulphur (Li-S) battery using boron nitride nanotubes to increase energy density well beyond that of lithium-ion batteries, while extending Li-S battery cycle life.

TEK-Ocean Group Limited (ASX:T3K) provide a range of integrated services to the energy industry. Offshore and onshore specialists offer end-to-end solutions to the oil and gas, marine and renewables sectors.

Cobram Estates Ltd (ASX:CBO) is Australia’s largest producer and marketer of premium quality extra virgin olive oil.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Best and Less Ltd (ASX:BST) is a value apparel specialty retailer with physical stores in Australia and New Zealand and an online platform across its two brands: Best & Less (in Australia); and Postie (in New Zealand).

BST raised approximately $60 million by the issue of 27,986,557 shares at an issue of $2.16 per share.

The company listed on Monday at $2.17 and finished the week on $2.51.

Aquirian Limited (ASX:AQN) is a specialist mining services company providing people, equipment and innovative products that support mining clients across their operations.

AQN raised $8,000,000 by the issue 40,000,000 shares at an issue price of $0.20 per share.

The company listed on Tuesday at $0.235 and finished the week on $0.22.

M3 Mining Ltd (ASX:M3M) is a mining exploration company with a focus on unlocking copper and gold deposits in a West Australian mining jurisdiction.

M3M raised $4,600,000 by the issue of 23,000,000 shares at an issue price of $0.20 per share.

The company listed on Thursday at $0.18 and finished the week on $0.195.

East33 Ltd (ASX:ETT) is a Sydney Rock Oyster producer, processor and supplier.

ETT raised $32,000,000 by the issue of 160,000,000 shares at an issue price of $0.20 per share.

The company listed on Thursday at $0.245 and finished the week on $0.245.

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.


Cradle Resources Ltd (ASX:CXX) focuses on its Panda Hill niobium project, located in the Mbeya district in south-western Tanzania.


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.

Iress Ltd (ASX:IRE) provides software and services for trading & market data, financial advice, investment management, mortgages, superannuation, life & pensions and data intelligence.

IRE announced an on-market buyback of up to 193,676,652 shares over twelve months.


NAB Bank Ltd (ASX:NAB) engages in the provision of banking and financial services.

NAB announced it intends to buy back up to $2.5 billion of its ordinary shares on-market over twelve months.


Waypoint REIT Ltd (ASX:WPR) is a real estate investment trust fund that engages in property leasing and investment.

WPR intends to buy back up to 29 million shares or approximately $75 million worth of 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.


“People should like something less when its price rises, but in investing they often like it more.” – Howard Marks


 

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, MME, MNY, OZL, PRO, SBM, SRG, SXE, VXR, WSA, WTL

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