Newsletter – 6 December 2020

Australian share market updates for the week ending 6 December 2020

Contents:

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

Australian economic activity rose 3.3% in the September quarter, above expectations of a 2.5% increase. Household spending was up 7.9% with increased spending on goods and services. The recovery comes after a record 7% fall in the June quarter. Technically the recession is now over, but challenges to economic recovery remain.

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.

Cettire Ltd (ASX: CTT) is a global online retailer that offers personal luxury goods via its website.

Toreens Mining Ltd (ASX: TRN) is focused on exploration for gold, copper and cobalt.

Felix Group Holdings Ltd (ASX: FLX) is used by construction, mining, government, utility and public infrastructure companies to manage their supply chains. Felix also has an online marketplace for plant, equipment and subcontractor quotes.

Companies that commenced trading this week.

Magellan Global Fund (ASX: MGF) is a registered managed investment scheme that invests in global equities.

The company listed on Monday opening at $1.86 and finished the week at $1.90.

Hexima Ltd (ASX: HXL) is a biotechnology company actively engaged in the research and development of plant-derived defensin peptides for applications as human therapeutics.

HXL raised approximately $3.28 million by the issue of 16,403,854 shares at an issue price of $0.20 per share.

The company listed on Tuesday opening at $0.20 and finished the week at $0.16.

Cash Rewards Ltd (ASX: CRW) is a cashback ecosystem, providing members the opportunity to browse brands and cashback offers and receive cashback on transactions by shopping online or in-store with participating merchant partners.

CRW raised $65 million by the issue of 37,572,255 shares by CRW at an offer price of $1.73 per share.

The company listed on Wednesday opening at $2.01 and finished the week at $2.10

Booktopia Group Ltd (ASX: BKG) is an Australian online only book retailer. In addition to books, Booktopia also sells eBooks, DVDs, audio books, magazines, maps, calendars, puzzles, stationery and cards.

BKG raised $43,100,000 by the issue of 18,796,663 shares at an issue price of $2.30 per share.

The company listed on Thursday opening at $2.86 and finished the week at $2.92.

MAAS Group Holdings Ltd (ASX: MGH) is an independent Australian construction materials, equipment and services provider with diversified exposures across the civil, infrastructure, mining and real estate end markets.

MGH raised approximately $145,600,000 million by the issue of 72,824,571 shares at an offer price of $2.00 per share.

The company listed on Friday opening at $2.40 and finished the day at $2.71.

Doctor Care Anywhere Group PLC (ASX: DOC) is a UK-based telehealth company. DOC utilises its relationships with health insurers, healthcare providers and corporate customers to connect with patients and deliver a range of telehealth services.

DOC raised $102,000,000 by the issue of 127,500,000 shares at an issue price of $0.80 per share.

The company listed on Friday opening at $1.10 and finished the day at $0.93.

Prospech Ltd (ASX: PRS) owns 100% of a prospective suite of approximately 204km² of principally gold and silver exploration licences in, and nearby to, the Hodrusa-Hamre/Banska Stiavnica mining district and the nearby Nova Bana goldfield of Slovakia.

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

The company listed on Friday at $0.235 and finished the day at $0.22.

Nuix Ltd (ASX: NXL) software helps customers to process, normalise, index, enrich and analyse data from a multitude of sources via the Nuix Engine.

NXL raised approximately $953 million by the issue of 179,479,144 at an issue price of $5.31 per share.

The company listed on Friday opening at $8.50 and finished the day at $8.01.

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.

Australian Vintage Ltd (ASX: AVG) is an Australian wine producer. Brands include McGuigan Wines, Tempus Two, Nepenthe and the Barossa Valley Wine Company.

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 should increase 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 from last week.

Quote:
“You can be certain that the head of a corporation has a lot to worry about when he announces publicly that “there is nothing to worry about.” – Nassim Nicholas Taleb.


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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