Newsletter – 2 May 2021

Australian share market updates for the week ending 2 May 2021

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Contents:

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

Chart of the week

Australia’s March quarter Consumer Price Index (CPI) rose just 0.6%, coming in under market expectations of a 0.9% rise. With inflation consistently below the Reserve Bank’s target range in recent years and quarterly numbers remaining low, interest rates are unlikely to rise in the near future.

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.

Polymetals Resources Ltd (ASX: POL) is an Australian mining and exploration company, incorporated for the purpose of acquiring, exploring and developing gold projects in Guinea, West Africa.

Australian Clinical Labs Ltd (ASX: ACL) is a private provider of pathology services in Australia.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Peter Warren Automotive Holdings Ltd (ASX: PWR) operates 17 new and used car dealerships across Sydney, Northern New South Wales and Southern Queensland.

PWR raised $260 million by the issue of 89,655,172 ordinary fully paid shares at $2.90 per share.

The company listed on Tuesday opening at $3.44 and finished the week at $3.49.

Albion Resources Ltd (ASX: ALB) was founded for the purpose of scoping the globe for high grade zinc opportunities which include, amongst other jurisdictions, Australia, Ireland, Spain and the African continent.

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

The company listed on Friday opening at $0.25 and finished the week at $0.23.

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.

Washington H Soul Pattinson & Co. (ASX: SOL) is an investment house with a portfolio encompassing many industries including its traditional field of pharmaceuticals, as well as mining, building materials, property investment, telecommunications, financial services and other equity investments.

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.

Downer EDI Limited (ASX: DOW) provides services to customers in transport, utilities; facilities; engineering, construction and maintenance; and mining in Australia and New Zealand.

DOW intends to buy-back up to $70 million shares (10% of issue) over the next 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

“He who wishes to be rich in a day will be hanged in a year”. – Leonardo Da Vinci


 

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

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