Newsletter – 31 January 2021

Australian share market updates for the week ending 31 January 2021

Contents:

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

Chart of the week

The Goldman Sachs Non-profitable Technology Index has soared since the COVID-19 market lows in March last year. The index tracks unprofitable tech companies in the US. The rise is mainly being attributed to retail investors buying individual stocks and options while in lockdown with excess cash, stimulus checks and free brokerage.

Source: Bloomberg, Financial Times

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.

Juno Minerals Ltd (ASX: JNO) is an independent mining company based in Perth, Western Australia with two iron ore development projects in the Yilgarn region of Western Australia.

Companies that commenced trading this week.

Pentanet Ltd (ASX: 5GG) is a Perth-based licensed telecommunications carrier and internet service provider.

5GG raised $22,460,000 by the issue of 89,840,000 shares at an issue price of $0.25 per share.

The company listed on Friday at $0.74 and finished the day at $0.59.

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.

Marvel Gold Ltd  (ASX: MVL) is a Mali-focused gold explorer with advanced gold exploration projects and extensive landholdings in South and West Mali.

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.

“We have two classes of forecasters: those who don’t know, and those who don’t know they don’t know.”  – John Kenneth Galbraith


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

Past newsletters