Newsletter – 19 September 2021

Australian share market updates for the week ending 19 September 2021

Contents:

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

Chart of the week

Prices of rare earths have surged over the last year on increased demand from new technologies, including electric vehicles, while electronic products are in demand as global economies recover. Adding to the surge are ongoing trade tensions between the US and China, which provides ~85% of the world’s rare earths.

Source: Nikkei Asia

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.

Remsense Technologies Ltd (ASX:REM) provides aerial and terrestrial based scanning and imaging systems, engineering services and Virtual Plant, which enables visual information from remote or distributed assets.

Touch Ventures Ltd (ASX:TVL) is an investment holding company focused on high growth, scalable investment opportunities globally, including those who may benefit from Afterpay’s ecosystem. Afterpay Ltd is the largest shareholder in Touch Ventures.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Legacy Minerals Ltd (ASX:LGM) is involved in the acquisition and exploration of gold and copper projects in the New South Wales Lachlan Fold Belt.

LGM raised $5,801,500 by the issue of 29,007,500 shares at an issue price of $0.20 per share.

The company listed on Monday opening at $0.245 and finished the week on $0.22.

Heavy Minerals Ltd (ASX:HVY) is an Australian industrial minerals company.

HVY raised $5,500,000 by the issue of 27,500,000 shares at an issue price of $0.20 per share.

The company listed on Tuesday opening at $0.18 and finished the week on $0.205.

Copper Search Ltd (ASX:CUS) is a mineral exploration and development company focused on the Gawler Craton region in South Australia.

CUS raised $12,000,000 by the issue of 34,285,715 shares at an issue price of $0.35 per share.

The company listed on Wednesday opening at $0.42 and finished the week on $0.40.

Way 2 Vat Ltd (ASX:W2V) has developed the W2V Platform, a web application capable of reclaiming many types of Value Added Tax.

W2V 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 $0.38 and finished the day on $0.315.

SSH Group Ltd (ASX:SSH) provides safety and people services, including security, labour hire, and road safety services across an array of industries and project sites in Western Australia.

SSH raised $6,250,000 by the issue of 31,250,000 shares at an issue price of $0.20 per share.

The company listed on Friday opening at $0.26 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.

AUB Group Ltd (ASX:AUB) comprises of insurance brokers and underwriting agencies operating in ~500 locations across Australia and New Zealand.

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.

Prime Financial Group Ltd (ASX:PFG) provides accounting & business advisory, wealth management, self-managed super funds and capital & corporate advisory services.

PFG announced an on-market share buyback of up to 19,782,244 (10% of issue) shares over twelve months.

ICandy Interactive Ltd (ASX:ICI) develops and publishes mobile games and digital entertainment.

ICI intends to buy back up to 36 million shares (6% of issue) on-market 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.

Invocare Ltd (ASX:IVC)

Most geniuses—especially those who lead others—prosper not by deconstructing intricate complexities but by exploiting unrecognized simplicities.” – Andy Benoit


 

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, BGL, BRV, CDX, CDXO, COL, CYP, DDR, DGL, DHG, EVN, EXR, FBR, FID, FRI, GGG, GOR, IGO, IRI, MGX, MME, MNY, OZL, PRO, SBM, SRG, SXE, VXR, WSA, WTL

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