Updates from the Australian share market for the week ending 20/10/2019
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Contents: IPOs, director trades, buybacks and short sales for the week.
Chart of the week
China’s GDP growth was 6% year on year for the third quarter, coming in slightly below expectations. This is the weakest rate in 27 years. The trade war with the US and sluggish domestic spending continue to weigh on the Chinese economy.
Initial public offerings (IPOs)
Companies that have recently applied to the ASX for listing. See the website for more details.
360 Capital Digital Infrastructure Fund will invest in a portfolio of digital infrastructure assets.
Cronos Australia Limited is a medicinal cannabis company supplying both THC and CBD products.
Companies that commenced trading this week.
Home Consortium (ASX: HMC) is an internally managed property group focussed on ownership, development and management.
HMC raised approximately $325 million by the issue of 97,014,911 ordinary fully paid stapled securities at $3.35 per stapled security.
The company listed on Monday opening at $3.64 and finished the week at $3.80.
Damstra Holdings (ASX: DTC) is a supplier of workplace management solutions.
DTC raised $49,321,500 by the issue of 38,888,889 ordinary fully paid shares by DTC and the sale and transfer of 15,912,778 ordinary fully paid shares by Damstra Sale Co Limited at an offer price of $0.90 per share.
The company listed on Wednesday at an opening price of $1.125 and finished the week at $1.18
Insider trades are the purchase & sale of shares in a company by the company’s directors. On-market and most off-market are counted. 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.
See the website for more details, such as the price and quantity of shares bought. For a full list of director trades by company over the last year, see the members section.
Companies with at least three different directors buying recently and no sells over the last year are listed below.
Xplore Wealth Ltd (ASX: XPL) provides wrap platform, managed discretionary account and share broking services to the wealth management industry.
The eponymous 1987 movie “Wall Street” is full of investing pearls of wisdom. The below article dissects a few.
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 its shares on the open market and increases the Earnings Per Share (EPS) of the remaining shares, all else being equal. The company will usually buy shares back when they see them as good value. For the latest buyback announcements see the website.
No new buybacks announced.
Shorting a stock is betting the price will decrease. See the full list of shorted stocks here. The member’s section has Five Day and Year to Date changes in short sales.The below table shows the top twenty most shorted stocks on the ASX. Data is lagged 5 days.
Kirkland Lake Gold (ASX: KLA)
The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd” – Warren Buffett
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.
The author owns ASX listed stocks: ACR, ALQ, CDX, CDXO, CGO, DHG, EVN, FBR, FID, FRI, GOR, IRI, MGX, MNY, OZL, PRO, QIN, SF1, SFL, SRG