Newsletter – 18 April 2021

Australian share market updates for the week ending 18 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

Copper has continued its strong run and is up 19% this year. Healthy demand from China and President Biden’s $2 trillion infrastructure and jobs package has buoyed sentiment, coupled with the longer-term thematic of copper’s use in clean energy technology. Supply has been constrained by COVID-19 disruptions in major South America producers.

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.

MLG Oz Limited (ASX: MLG) offers a range of services from bulk haulage, crushing and screening, aggregate and sand supplies through to export logistics.

Audeara Ltd (ASX: AUA) is a hearing health technology company that has developed a hearing profile algorithm used to personalise sound output to the needs of the individual.

Arcadia Minerals Ltd (ASX:AM7) is a Guernsey domiciled exploration company created for the purposes of acquiring interests in four exploration projects located in Namibia and, following listing, to continue ongoing exploration and further studies.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Deloreon Group Ltd (ASX: DEL) is a builder and developer of bioenergy infrastructure and a retailer of electricity aiming to create its own pipeline of bioenergy infrastructure projects in Australia.

DEL raised $14,000,000 by the issue of 70,000,000 shares at an issue price of $0.20 per share.

The company listed on Monday opening at $0.37 and finished the week at $0.28.

Island Pharmaceuticals Ltd (ASX: ILA) is a drug research and repurposing company, focused on developing preventative or therapeutic drugs for viral infections.

ILA raised $7,500,000 by the issue of 30,000,000 shares at an issue price of $0.25 per share.

The company listed on Tuesday opening at $0.50 and finished the week at $0.44.

Iceni Gold Ltd (ASX: ICL) is focused on the acquisition, exploration, and development of gold projects in Western Australia.

ICL raised $20,000,000 by the issue of 100,000,000 shares at an issue price of $0.20 per share.

The company listed on Wednesday opening at $0.35 and finished the week at $0.26.

Propell Holdings ltd (ASX: PHL) is a digital-only company focused on payments and lending for the small to medium enterprise segment.

PHL raised $5,000,000 by the issue of 25,000,000 shares at an issue price of $0.20 per share.

The company listed on Wednesday opening at $0.265 and finished the week at $0.21.

92 Energy Ltd (ASX: 92E) is a uranium exploration company searching for high-grade unconformity style uranium in the Athabasca Basin, Saskatchewan, Canada.

92E 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 Thursday opening at $0.35 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.

Finbar Group Limited (ASX: FRI) engages in property development and investment in Western Australia. FRI focuses on the development of medium to high-density residential buildings and commercial developments.

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.

“If you look back to the most spectacular blow ups in history, you can always tie them to a couple things: They were extraordinary complicated strategies that maybe even the practitioners themselves didn’t understand, and they were over-leveraged.” – James O’Shaughnessy


 

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