Newsletter – 7 March 2021

Australian share market updates for the week ending 7 March 2021

Contents:

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

Chart of the week

The proportion of ASX 200 companies reporting profits for the six months to 31 December 2020 lifted to 86%, up from 75% in the year to 30 June 2020. Companies paying a dividend lifted to 79% over the same period compared to 68% in the year to 30 June 2020.

Source: Commsec

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.

Island Pharmaceuticals Ltd (ASX: ILA) is a drug research and repurposing company, focused on developing preventative or therapeutic drugs for viral infections.

Kincora Copper ltd (ASX: KCC) is an active explorer and project generator focused on copper-gold discoveries.

Companies that commenced trading this week.

3D Metalforge Ltd (ASX: 3MF) has developed intelligent technology and processes to integrate Additive Manufacturing (AM) printers, software and material to supply end user customers with a range of AM services.

3MF 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 $0.35 and finished the week on $0.24.

EZZ Life Science Holdings Limited (ASX: EZZ) develops, produces, and distributes consumer health products under its own brand, EZZ, to retailers in Australia and New Zealand as well as consumers in China, with plans to continue expanding to other international markets.

EZZ raised $6,000,000 by the issue of 12,000,000 fully paid ordinary shares at an issue price of $0.50 per share.

The company listed on Wednesday at $0.68 and finished the week on $1.07.

My Food Bag Ltd (ASX: MFB) is dual-listed on the NZX. MFB has a range of meal kit bags in New Zealand under the My Food Bag, Bargain Box and Fresh Start brands, and ready-made meals with the MADE brand.

The company listed on Friday and opened at $1.65 and closed the day on $1.62.

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.

Raiz Invest Ltd (ASX: RZI) is a mobile-first financial services platform designed to boost investing and savings in and outside of superannuation, available via the Raiz app or its website.

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 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 wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don’t. It’s just that simple.” – Charlie Munger


 

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: ACR, 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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