Newsletter – 14 March 2021

Australian share market updates for the week ending 14 March 2021

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Contents:

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

Chart of the week

The oil price has been climbing recently, mainly on OPEC+ extending production cuts into April, while demand will be supported by global economies re-opening.

Source: TradingEconomics

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.

Propell Ltd (ASX: PHL) is a digital only, tailored finance platform for the small to medium business segment. Propell’s vision is to revolutionise how small to medium businesses manage and optimise cashflow by simplifying the entire transactional and lending process.

Iceni Gold Ltd (ASX: ICL) is a gold explorer. The company’s key project is the 14 Mile Well Project, located in the Laverton region of Western Australia, within the Eastern Goldfields Superterrane of the Yilgarn Craton.

92Energy Ltd (ASX: 92E) is a uranium exploration company with projects in the Athabasca Basin in Saskatchewan, Canada.

Delorean Corporation Ltd (ASX: DEL) is a vertically-integrated renewable energy generation and retail company.

Companies that commenced trading this week.

DDH1 Limited (ASX: DDH) provides drilling technologies to obtain spatially accurate representative geological information for the discovery, assessment and extension of economic mineral occurrences.

DDH raised $150,000,000 by the issue of 136,363,636 shares at an issue price of $1.10 per share.

The company listed on Tuesday at $0.91 and finished the week on $0.95.

Genmin Ltd (ASX: GEN) is a West African focused iron ore exploration and development company with projects located in the Republic of Gabon.

GEN raised $29,999,999.96 by the issue of 88,235,294 shares at an issue price of $0.34 per share.

The company listed on Wednesday at $0.32 and finished the week on $0.305.

VanEck Vectors MSCI International Small Companies Quality ETF (ASX: QSML) gives investors a diversified portfolio of 150 international developed market small-cap quality growth companies having durable business models and sustainable competitive advantages.

VanEck Vectors MSCI International Value ETF (ASX: VLUE) gives investors a diversified portfolio of 250 international large and mid-cap companies, with high value scores as calculated by MSCI at each rebalance based on three fundamental variables: 1. price-to-book value; 2. price-to-forward earnings; and 3. enterprise value-to-cash flow from operations. Exclusions apply for weapons and tobacco.

VanEck Global Clean Energy ETF (ASX: CLNE) gives investors a diversified portfolio of the largest and most liquid companies involved in clean energy production and associated technology and equipment globally, from both developed and emerging markets.

Climate Change Innovation ETF (ASX: ERTH) is designed to track the performance of up to 100 of the largest global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 (carbon dioxide) emissions.

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.

Western Areas Ltd (ASX: WSA) is an Australian-based nickel sulphide explorer and producer. The core asset is the 100% owned Forrestania nickel operation which comprises two operating mines: Flying Fox and Spotted Quoll. They also have 100% interest in Bioheap Ltd, a patented bacterial leaching technology.

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 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.

“The first principle is that you must not fool yourself and you are the easiest person to fool.” – Richard Feynman


 

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: ACR, 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

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