Newsletter – 24 January 2021

Australian share market updates for the week ending 24 January 2021

Contents:

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

Chart of the week

The Australian dollar has been climbing against the US dollar. This has been helped by rising commodity prices, particularly iron ore, Australia’s biggest export, and improving Australian economic sentiment. The USD has been weak on continued COVID-19 cases and unparalleled government stimulus.

Source: xe.com

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.

No new companies.

Companies that commenced trading this week.

Chimeric Therapeutics Ltd (ASX: CHM) will focus on the development of a class of cell therapy cancer drugs known as CAR Ts, an acronym for Chimeric Antigen Receptor T Cell. These drugs have shown dramatic results in blood cancers and there are now three CAR T drugs on the market approved by the US Food and Drug Administration (FDA).

CHM raised approximately $35 million by the issue of 175,000,000 shares at an issue price of $0.20 per share.

The company listed on Monday at $0.32 and finished the week at $0.39.

Australian Gold and Copper Ltd (ASX: AGC) is a gold and base metals exploration company which was spun-off from Magmatic Resources (ASX: MAG). AGC will hold three projects located in the Central Lachlan, New South Wales.

AGC raised $10,000,000 by the issue of 50,000,000 shares at an issue price of $0.20 per share.

The company listed on Wednesday at $0.20 and finished the week at $0.215.

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.

Technology One (ASX: TNE) is a software provider and consultant. It services government, financial services, health & community services, education, and utilities and managed services markets. Products include financials, HR & Payroll, supply chain and business intelligence software.

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 a share 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 to the list from last week.

“It is ludicrous to believe that asset bubbles can only be recognized in hindsight.” – Michael Burry


 

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 take into account 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, 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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