Newsletter – 10 January 2021

Australian share market updates for the week ending 10 January 2021

Contents:

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

Chart of the week

Job advertisements, as measured by ANZ, grew 9.2% in December to rise above pre-pandemic levels. This was the eighth straight month of gains in job advertisements, further evidence the economy is emerging from lockdowns.

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.

No new companies this week.

Companies that commenced trading this week.

Truscreen Group Ltd (ASX: TRU) is an NZX listed company, that applied for duel listing on the ASX. Truscreen is the manufacturer and owner of the TruScreen cervical cancer screening system.

TRU raised NZ$2,000,000 by the issue of 28,571,428 shares at an issue price of NZ$0.07 per share.

The company listed on Wednesday at $0.098 and finished the week at $0.165.

Torrens Mining Ltd (ASX: TRN) is focused on exploration for gold, copper and cobalt through its positions in the Victorian Goldfields and the Elizabeth Creek copper-cobalt project in South Australia.

TRN raised $10 million by the issue of 50 million shares at an issue price of $0.20 per share.

The company listed on Thursday at $0.32 and finished the week at $0.29.

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.

Regis Resources (ASX: RRL) is a gold miner with operations at the Duketon Gold Project in the North Eastern Goldfields of Western Australia and the McPhillamys Gold Project in the Central Western region of New South Wales.

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 this week.

Short positions

Shorting a share is betting the price will decrease. It can pay to check short positions in a share 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.

Quote:
“It’s remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” – 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 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.

Sharp Investor owns ASX listed stocks: ACR, ARL, ALQ, 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