Newsletter – 4 April 2021

Australian share market updates for the week ending 4 April 2021

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Contents:

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

Chart of the week

Renewable energy accounted for more than a quarter of Australian electricity generation for the first time in 2020, contributing 27.7% of electricity generation. Coal accounted for 61.9% of total energy generation, followed by renewables (27.7%), gas (9.9%), waste coal mine gas (0.4%) and liquids (0.1%). Wind was the leading source of renewable energy generation, accounting for 35.9% of Australian renewable energy.

Source: Clean Energy Council

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.

Global Lithium Resources Ltd (ASX: GL1) is a Pilbara focused lithium exploration and development company. The company owns 100% of the Marble Bar Lithium Project, a hard-rock lithium project located 180km south-east of Port Hedland in the Pilbara region of Western Australia.

Albion Resources Ltd (ASX: ALB) is focused on exploration for lead, zinc, gold and nickel. Its assets are in Lennard Shelf, located in the Kimberley region and Leinster in the Norseman-Wiluna greenstone belt in Western Australia.

Last week’s IPOs

Companies that commenced trading on the ASX last week.

Peregrine Gold Ltd (ASX: PGD) holds the rights to the Pilbara Gold Project, which comprises seven tenements in the gold prospective Pilbara region of Western Australia.

PGD raised $2,500,000 by the issue of 12,500,000 shares at an issue price of $0.20 per share and 4,166,532 quoted options exercisable at $0.20 per option expiring on 24 December 2023.

The company listed on Wednesday at $0.26 and finished the week on $0.295

Kincora Resources Ltd (ASX: KCC) is a Canadian company also listed on the TSX Venture Exchange (TSX-V), focused on the discovery of copper, gold and porphyry associated deposits in the Lachlan Fold Belt of Australia.

KCC 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 Tuesday at $0.25 and finished the week on $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.

Ansarada Group Ltd (ASX: AND), formerly thedocyard Ltd, is a developer and provider of cloud-based software designed to allow all aspects of legal and financial transactions to be undertaken on the one central platform

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.

Boral Limited (ASX: BLD) is an international building products and construction materials group with three divisions: the integrated construction materials business of Boral Australia, USG Boral (a plasterboard joint venture in Asia, Australia and the Middle East), and Boral North America, a building products and fly ash business.

Boral intends to buy back up to 122.5 million shares (10% of shares on issue), over the next 12 months. The buy-back will be funded from proceeds of the recent sale of its 50% share in the USG Boral joint venture.

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 only true wisdom is knowing that you know nothing’ – Socrates


 

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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