Newsletter – 11 April 2021

Australian share market updates for the week ending 11 April 2021

Add this email to your trusted contacts to ensure images display correctly.

Contents:

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

Chart of the week

Australian house prices rose 2.8% in March, the highest growth rate in 32 years, and are now at record highs. Gains were seen in both capital and regional areas. House prices are up 6.2% for 2021. The booming market is being attributed to record low interest rates, government support packages for first home buyers, and tight supply.

Source: Commsec, Corelogic

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.

Hiremii Ltd (ASX: HMI) has two core business components, a fixed fee recruitment business and a recruitment and full-service labour hire business, providing digitised employee onboarding and labour hire services.

Flynn Gold Ltd (ASX: FG1) is an Australian-based mineral exploration company targeting gold in two emerging gold camps – WA’s Pilbara region and northeast Tasmania – where it has established 100% owned projects.

Latitude Financial Ltd (ASX: LFS) offers its customers in Australia and New Zealand payment instalments and lending products.

PWA Holdings Ltd (ASX: PWR) is a Sydney based automotive retailing group.

Lithium Energy Ltd (ASX: LEL) is principally focused on the exploration and development of the company’s flagship Solaroz Lithium Project in Argentina.

Last weeks’ IPOs

Companies that commenced trading on the ASX last week.

Lynch Group Ltd (ASX: LGL) is a vertically integrated wholesaler and grower of flowers and potted plants.

LGL raised approximately $206.1 million by the issue of 57,358,416 fully paid ordinary shares at an issue price of $3.60 per share.

The company listed on Tuesday opening at $3.63 and finished the week on $3.44.

TechGen Metals (ASX: TG1) is an Australian exploration company with a primary focus on exploring and developing its acquired gold and copper projects in Western Australia.

TG1 raised $6,000,000 by the issue of 30,000,000 shares at an issue price of $0.20 per share.

The company listed on Wednesday opening at $0.265 and finished the week on $0.28.

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.

CountPlus Limited (ASX: CUP) is a network of professional accounting and advice firms.

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.

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” – George Soros


 

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