Newsletter – 13 December 2020

Australian share market updates for the week ending 13 December 2020

Contents:

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

The iron ore price has pushed through US$150 a tonne as Vale, the world’s second-largest iron ore producer, will not meet 2020 production targets and released disappointing 2021 guidance. Adding to supply concerns, Port Headland in Western Australia, the world’s largest iron ore export terminal, has cleared all large vessels on warnings of a potential hurricane. China’s recovery and infrastructure spending has seen demand remain elevated.

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.

Nexicon Group Ltd (ASX: NNG) provides hybrid cloud infrastructure used by corporations to host their core business systems.

Companies that commenced trading this week.

Control Bionics Ltd (ASX: CBL) has pioneered the use of electromyography signals as a means of enabling people, including those with a severe level of incapacity or spasticity, to control devices such as smartphones, tablets, computers, electric wheelchairs, environmental controls and robotics.

CBL raised $15 million by the issue of 25,000,000 shares at an issue price of $0.60 per share.

The company listed on Monday opening at $1.12 and finished the week at $1.00.

Youfoodz Holdings Ltd (ASX: YFZ) specialises in the production and distribution of ready-made meals and other convenience food products for residential (home delivery), retail and corporate customers.

YFZ raised $70 million by the issue of 46,725,779 shares at an issue price of $1.50 per share.

The company listed on Tuesday opening at $1.32 and finished the week at $1.08.

Dalrymple Bay Infrastructure Limited (ASX: DBI) holds the 99-year lease of Dalrymple Bay Terminal. It is the world’s largest metallurgical coal export terminal.

DBI raised $1,286 million by the issue of 500,277,933 stapled securities at $2.57 per stapled security.

The company listed on Tuesday opening at $2.24 and finished the week at $2.10.

Aurumin Ltd (ASX: AUN) is a gold exploration company with four gold projects in the Southern Cross and Kalgoorlie regions in Western Australia.

AUN raised $7,000,000 by the issue of 35,000,000 shares at an issue price of $0.20 per share.

The company listed on Wednesday opening at $0.35 and finished the week at $0.35.

Cluey Ltd (ASX: CLU) provides personalised online tutoring and educational support to school students in Australia.

CLU raised approximately $30 million by the issue of 24,999,969 shares at an issue price of $1.20 per share.

The company listed on Wednesday opening at $1.20 and finished the week at $1.20.

Topshelf International Holdings Ltd (ASX: TSI) is a Melbourne based producer and marketer of high-quality Australian spirit-based beverage brands.

TSI raised approximately $47.2 million by the issue of 21,328,802 shares at an issue price of $2.21 per share and the issue of 32,452 shares at an issue price of $1.88 per share.

The company listed on Thursday opening at $2.21 and finished the week at $2.25.

Kingfisher Mining Ltd (ASX: KFM) is a mineral exploration company with projects in Western Australia. The company’s tenure covers 590 km2 in the Ashburton and Gascoyne mineral fields and has advanced copper-gold exploration targets as well as significant strike lengths of the target geological units.

KFM 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 Friday opening at $0.315 and finished the week at $0.295.

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.

AD1 Ltd (ASX: AD1) is a recruitment technology business that builds talent platforms to bring employers and candidates together.

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 should increase 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.

Healius Ltd (ASX: HLS) is a healthcare company which offers services to medical and health professionals. Healius has three businesses; pathology, imaging and day hospitals/IVF.

HLS will conduct an on-market buy-back of up to $200 million worth of shares, over the next twelve months.

Elanor Retail Property Fund (ASX: ERF) is an externally managed real estate investment trust that invests in Australian retail shopping centre assets. ERF currently owns 7 non-discretionary focused retail shopping centre assets.

The trust announced it will buy-back up to 10% of issue over twelve months.

Keybridge Capital Ltd (ASX: KBC) is an investment and financial services group with a portfolio of listed and unlisted investments and loan assets in the life insurance, property and funds management sectors.

KBC will buy-back up to 10% of issue on-market over the next twelve months. The company recently came out of suspension.

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:
“There are two times in a man’s life when he should not speculate: when he can’t afford it and when he can.” – Mark Twain


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

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