Newsletter

Australian share market updates for the week ending 21 February 2021

Contents:

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

Chart of the week

Used car sales in Australia have soared since pandemic trading restrictions eased. This has been attributed to restricted new car stock from international manufacturers. Commuters wanting to avoid public transport, and explore the country in the absence of international travel options, are also fueling demand. The chart compares sales vs sales from the beginning of the 2008 Global Financial Crisis (GFC).

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.

Genmin Ltd (ASX: GEN) is an Australian domiciled iron ore exploration and development company with a pipeline of projects in Gabon.

My Food Bag Ltd (ASX: MFB) is a New Zealand company that delivers customers meal kits with ingredients and recipes.

Mad Paws Ltd (ASX: MPA) has a marketplace that offers pet owners access to a range of pet walking, pet sitting, and pet care services via its community of pet service providers.

Companies that commenced trading this week.

Nexion Group (ASX: NNG) provides hybrid cloud infrastructure used by corporations to host their core business systems.

NNG raised $8,000,000 via the issue of 40,000,000 shares at an issue price of $0.20 per share.

The company listed on Thursday at $0.20 and finished the week at $0.28.

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.

Bellevue Gold Ltd (ASX: BGL) (formerly Draig Resources Ltd) holds the Bellevue Gold Project in Western Australia.

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.

GPT Global Ltd (ASX: GPT) is a property investment company. GPT is the owner and manager of a portfolio of Australian retail, office, logistics and business parks property assets.

GPT will buy back up to 97.3 million shares (5% of issue) on-market, over twelve months.

Horizon Oil Ltd (ASX: HZN) is an oil and gas exploration, development and production company with projects located in New Zealand, Papua New Guinea and China.

HZN will buy back up to 10 million shares (8% of issue) from 4 March to September 2021.

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.

“The stock market is a giant distraction to the business of investing.” – John Bogle


 

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, 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