Newsletter – 13 June 2021

Australian share market updates for the week ending 13 June 2021

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Contents:

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

Chart of the week

Uranium prices have been trending up as countries such as the US and China look to nuclear power to complement the transition to renewable energy. Nuclear power has zero-emissions (although radioactive waste leakage is a risk). Supply remains limited as uranium mining has been cut back in recent years.

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.

Ballymore Resources Ltd (ASX: BTM) is seeking to identify and develop major mineral deposits in Queensland within its mining and exploration permits which have been historically mined for gold, copper, silver, lead and zinc.

Butn Ltd (ASX: BTN) provides buy-now-pay-later products for businesses and integrates directly into merchant, vendor and supplier payment systems.

Cannon Resources Ltd (ASX: CRN) is a mineral resources exploration company, established to implement the demerger undertaken by Rox Resources Limited for the purpose of maximising the value of the Fisher East Nickel Project and the Collurabbie Nickel Project.

29 Metals Ltd (ASX: 29M) is a copper focused base and precious metals mining company.

Silk Logistics Ltd (ASX: SLH) is a logistics business that offers a port-to-door service.

Bluebet Holdings Ltd (ASX: BBT) is an Australian online wagering service provider offering customers Australian and international racing and sports betting markets.

Lumos Diagnostics Ltd (ASX: LDX) specializes in point-of-care diagnostic test solutions to help healthcare professionals more accurately diagnose and manage medical conditions.

Charger Metals NL (ASX: CHR) is an Australian-based minerals company focusing on lithium and other base metals across projects in Western Australia and the Northern Territory.

Balkan Minerals and Mining Ltd (ASX: BMM) is a mineral exploration company. The Rekovac Lithium-Borate Project as well as the Dobrinja and Pranjani licences, located in Serbia, are the company’s current focus whilst it explores for further opportunities in the Balkan region.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Trajan Group Ltd (ASX: TRJ) is a developer and manufacturer of analytical science instruments, devices and solutions.

TRJ raised $130 million by the issue of 52,941,177 shares at an issue price of $1.70 per share.

The company listed on Monday at $1.86 and finished the week on $2.35.

FOS Capital Ltd (ASX: FOS) owns subsidiary FOS Lighting, which is an Australian lighting manufacturer.

FOS raised $3,000,000 by the issue of 12,000,000 shares at an issue price of $0.25 per share.

The company listed on Monday at $0.23 and finished the week on $0.21.

Argenica Therapeutics Limited (ASX: AGN) provides neuroprotective treatment. It specializes in development and commercialization of a novel therapeutic known as ARG-007.

AGN 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 Friday opening at $0.27 and finished the day on $0.26.

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.

RareX Ltd (ASX: REE) is a specialist rare earths company focussed on developing the Cummins Range Rare Earth Project in the East Kimberly region of Western Australia.

 

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.

CD Private Equity Fund II (ASX: CD2) invests in small-to-medium sized private investment funds and privately held companies in the United States.

The fund will buy back up to 10% of issue over twelve months.

CD Private Equity Fund I (ASX: CD1) invests in eight underlying fund managers diversified across the US economy.

The fund will buy back up to 10% of issue 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.

“There is no better teacher than history in determining the future… There are answers worth billions of dollars in a $30 history book.” – Charlie Munger


 

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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.

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