Newsletter – 25 April 2021

Australian share market updates for the week ending 25 April 2021

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Contents:

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

Chart of the week

Preliminary retail turnover in Australia easily beat expectations rising 1.4% in March 2021, following an 0.8% fall in February. Victoria and Western Australia led the gains after brief lockdowns in February. Queensland had a small fall, as Brisbane saw a 3-day lockdown during the month, highlighting the effects lockdowns can have on spending.

Source: Australian Bureau of Statistics

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.

Lode Resources Ltd (ASX: LDR) was established for the primary purpose of exploring and acquiring gold, copper and silver exploration tenements in the New England Fold Belt of NSW, Australia.

Torque Metals Ltd (ASX: TOR) was formed to acquire, explore and develop gold opportunities in Western Australia.

Monger Gold Ltd (ASX: MMG) is a resource exploration company with highly prospective gold, nickel and base metal projects located in the eastern goldfields of Western Australia.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Latitude Group Holdings Ltd (ASX: LFS) is a payment installment and lending business.

LFS raised approximately $200 million by the sale of 76,900,000 ordinary fully paid shares at $2.60 per share.

The company listed on Tuesday opening at $2.96 and finished the week at $2.53.

Mighty Kingdom Ltd (ASX: MKL) is an Australian independent video game developer.

MKL raised $18,000,000 by the issue of 60,000,000 fully paid ordinary shares at an issue price of $0.30 per share.

The company listed on Wednesday opening at $0.33 and finished the week at $0.26.

BetaShares Australian Major Bank Hybrids Index ETF (ASX: BHYB) is designed to provide an investment return that aims to track the performance of the Solactive Australian Banking Preferred Shares Index.

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.

Integrated Research Ltd (ASX: IRI) is involved in the design, development, implementation and sale of systems and applications management computer software for business-critical computing, unified communication networks and payment networks.

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.

KKR Credit Income Fund (ASX: KKC) aims to provide Australian and New Zealand investors with attractive, risk-adjusted returns and access to a diversified portfolio of income generating alternative credit investments.

KKC intends to buy-back up to $20 million worth of units over the next 12 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.

“The single greatest edge an investor can have is a long-term orientation.” – Seth Klarman

 


 

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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