In Trading Places, Stockhead analyses the week’s substantial holder filings of ASX small-caps. Substantial shareholders are defined as those holding 5 per cent or more of a company’s shares and these could be directors, individual investors or institutional investors.

Shareholders are required to announce to the exchange when their shareholding becomes substantial, when they have ceased to be substantial shareholders or any change in their holdings above 5 per cent.

The Buyers

The most peculiar move this week was when German investment group Delphi Unternehmensberatung Aktiengesellschaft (AG) took a 11.83 per cent stake in gold explorer Kingston Resources (ASX: KSN). The purchase came in the company’s recent $4 million capital raising and cost Delphi $2.6 million.

While another major investor, Winchester Investments, took part, it has not crossed the substantial threshold.

As we covered earlier this week, Alliance Resources (ASX: AGS) chairman Ian Gandel bought another $1.5 million shares in the company and now owns 34 per cent of the gold explorer. His stake is now worth around $4.7 million.

Regal became a substantial holder of Prescient Therapeutics (ASX: PTX) and Family Zone Cyber Safety (ASX: FZO) spending $226,000 and $1 million respectively for 5.79 per cent and 6 per cent stakes respectively.

But only a few days after buying into Prescient, Regal’s holdings were diluted below the substantial holder threshold thanks to a capital raise.

Energy monitoring subscription service Bidenergy (ASX: BID) has skyrocketed from 5 cents to 90 cents since January 2018. Tiga Trading, a subsidiary of the Thorney Investment Group (run by Richard Pratt’s son-in-law and Collingwood president Alex Waislitz) became a substantial holder with a 5.85 per cent stake. It has bought $1.1 million this month, as well as $4.1 million in between late February and early April.

Freehill Mining (ASX: FHS) director Samuel Duddy now has a 9.29 per cent stake in the company. Duddy first bought shares in July last year and a $421,000 buy earlier this month took him over the 5 per cent line.

Spheria Asset Management took a 5.3 per cent stake in New Zealand Media & Entertainment (ASX: NZM) – the owners of the New Zealand Herald and several New Zealand radio stations. Spheria have been buying all year but in the last week its holdings became 5.3 per cent thanks to $587,000 in purchases in the last few weeks.

IOOF, through the fund co-operated with Perennial, took a 5 per cent stake in Uniti Wireless (ASX: UWL) and a 5.56 per cent stake in RedBubble (ASX: RBL). It also bought $210,000 in Otto Energy (ASX: OEL) stock but were diluted from 11.58 per cent to 10.51 per cent.

Canadian asset manager 1832 Asset Management bought $880,000 of Apollo Consolidated (ASX: AOP) shares and its holdings increased from 6.03 per cent to 7.70 per cent.

Company Code Market Cap Holder Stake Status
Family Zone Cyber Safety FZO $31.1M Regal 0.0606 Becoming
Uniti Wireless UWL $78.0M IOOF (Perennial fund) 0.05 Becoming
Ignite IGN $6.2M Alexander Zak 0.0517 Becoming
NZME NZM $101.9M Spheria Asset Management 0.053 Becoming
Prescient Therapeutics PTX $13.6M Regal Funds Management 0.0579 Becoming
Reverse Corp REF $3.1M Phoenix Portfolios 0.0942 Becoming
Bidenergy BID $8.4M Tiga Trading 0.0585 Becoming
Energy Action EAX $8.3M Linda Millar & Bruce Macfarlane 0.0505 Becoming
Freehill Mining FHS $14.6M Samuel Duddy 0.0929 Becoming
RedBubble RBL $258.7M IOOF 0.0556 Becoming
Universal Coal UNV $170.0M Brasidas Investment Management 0.1973 Becoming
Virtus Health VRT $317.5M Dimensional Entities 0.05 Becoming
Apzen Group APZ $93.4M Brahman Pure Alpha 0.0545 Becoming
Flexiroam FRX $9.0M Yeoh Aik Cheong 0.08 Becoming
Australian Finance Group AFG $255.6M Renaissance Smaller Companies 0.0502 Becoming
Kingston Resources KSN $22.2M Delphi 0.1183 Becoming
3P Learning 3PL $142.1M Sterling Equity 0.103 Increasing substantial holding
Apollo Consolidated AOP $44.0M 1832 Asset Mgmt (Bank of Nova Scotia affiliate) 0.077 Increasing substantial holding
Bigtincan BTH $121.1M Regal 0.1537 Increasing substantial holding
Kalium Lakes KLL $130.2M Greenstone Management 0.198 Increasing substantial holding
Mpower MPR $3.8M Anthony Group 0.5432 Increasing substantial holding
Orion Minerals ORN $67.8M Tembo Capital Mining Fund 0.2401 Increasing substantial holding
Stanmore Coal SMR $333.7M M Resources & Matthew Latimore 0.142 Increasing substantial holding
Avira Resources AVW $3.0M Great Southern Flour Mills 0.1 Increasing substantial holding
BCI Minerals BCI $69.6M Wroxby, ACE & associates 0.2907 Increasing substantial holding
Hot Copper HOT $22.5M Somers 0.225 Increasing substantial holding
Ignite IGN $6.4M OC20181 Trust 0.1405 Increasing substantial holding
Integrated Payment Technologies IP1 $3.7M Integrated Administration Services 0.1381 Increasing substantial holding
Reverse Corp REF $3.1M Mercantile Investment Company 0.131 Increasing substantial holding
Alliance Resources AGS $13.8M Phoenix Portfolios 0.0787 Increasing substantial holding
Calidus Resources CAI $36.0M Alkane Resources 0.1521 Increasing substantial holding
Building IQ BIQ $13.7M Welas 0.2778 Increasing substantial holding
Building IQ BIQ $13.7M Rhett Morson 0.0693 Increasing substantial holding
Energy Action EAX $8.3M Linda Ann Millar & Bruce Macfarlane 0.054 Increasing substantial holding
Roto-Gro RGI $25.3M James and Sherry Gallant 0.0777 Increasing substantial holding
Rhinomed RNO $33.4M W. Whitney George 0.2392 Increasing substantial holding
Sipa Resources SRI $13.7M Rodiv (Ervin Vidor) 0.1762 Increasing substantial holding
Aura Energy AEE $13.3M Asean Deep Value Fund 0.1002 Increasing substantial holding
Alliance Resources AGS $14.3M Phoenix Portfolios 0.0787 Increasing substantial holding
Alliance Resources AGS $14.3M Abbotsleigh 0.3366 Increasing substantial holding
Janison Education JAN $57.4M IOOF 0.1489 Increasing substantial holding
Image Resources IMA $174.7M Li Huang Cheng and Vestpro 0.1792 Increasing substantial holding
Lustrum Metals LRM $1.5M Merchant Funds Mgmt 0.3535 Increasing substantial holding
Reverse Corp REF $3.2M Mercantile Investment Company 0.145 Increasing substantial holding
OFX OFX $363.8M Renaissance Smaller Companies 0.0761 Increasing substantial holding
Pure Alumina PUA $4.5M Tolga Kumova and Kitara Investments 0.0929 Increasing substantial holding
QEM QEM $4.9M David Fitch 0.2488 Increasing substantial holding
Santa Fe Minerals SFM $7.1M Cesare Michael Genivera 0.1135 Increasing substantial holding

 

The sellers

It has been a year to forget for Blue Sky Alternative Investments (ASX: BLA) and its investors. In March last year, Fidelity’s 9.42 per cent stake was worth up to $85 million with the share price $11.75.

But now the share price is only 21 cents and Fidelity has sold net 700,000 shares this year. After its most recent sales it now owns an 8.37 per cent stake that is worth only $1.3 million.

While billion dollar businesses are usually beyond the scope of Stockhead, it was only a few weeks ago Zip Co (ASX: Z1P) was a small cap.

Regal first bought in late last year buying 20 million shares for $16 million between August and December, then another $12.8 million in the first quarter of this year. It built up a 7.79 per cent in the company worth over $88 million.

But across the month of April it sold around 5 million shares, reducing its stake to 6.21 per cent, netting it over $11 million.

Fidelity ceased to be substantial holders in Starpharma (ASX: SPL). It held a 5.95 per cent stake but after selling $218,000 worth of shares it was left with a 4.97 per cent stake.

Company Code Market Cap Holder Stake Status
Centrepoint Alliance CAF $12.2M Adam Smith Asset Mgmt 0.0579 Ceasing
Reverse Corp REF $3.0M Defender Equities 0.0892 Ceasing
MCS Services MSG $3.2M Peter Matthew Johns 0.074 Ceasing
Starpharma SPL $470.2M Fidelity 0.0595 Ceasing
AIC Resources A1C $10.5M Nordane; BPM Capital 0.2 Ceasing
Valor Resources VAL $11.4M Mark Sumner 0.0568 Ceasing
Twenty Seven TSC $3.6M Lindsay Murray Carther 0.055 Ceasing
Zip Co Z1P $1.2B Regal 0.0621 Change - Decreasing
Bellevue Gold BGL $253.6M Bank of Nova Scotia (1832 Asset Mgmt) 0.1123 Change - Decreasing
Otto Energy OEL $122.6M IOOF (Perennial fund) 0.1051 Change - Decreasing
Kalina Power KPO $15.2M Harrington Global Opportunities Fund 0.1303 Change - Decreasing
Intrepid Mines IAU $4.7M Brahman Capital management 0.0844 Change - Decreasing
Redhill Education RDH $71.1M Pengana 0.0681 Change - Decreasing
Blue Sky Alternative Investments BLA $18.3M Fidelity 0.0837 Change - Decreasing

 

The diluted

Here are all the substantial holders whose holdings changed because of dilutions – meaning their stakes decreased because new shares were issued. In some cases they may have actually bought more shares, but newer companies buying in reduce their share of the firm.

Company Code Market Cap Holder Stake Status
Otto Energy OEL $122.6M IOOF (Perennial fund) 0.1158 0.1051
Kalina Power KPO $15.2M Harrington Global Opportunities Fund 0.1598 0.1303
Intrepid Mines IAU $4.7M Brahman Capital management 0.155 0.0844
Bigtincan BTH $121.1M Lai Sun Keane 0.1167 0.1014
Kalium Lakes KLL $130.2M Bozden Super Fund (Brett & Tanya Hazelden) 0.0805 0.0615
Iodm IOD $15.5M Christopher Rogers 0.1417 0.1172
Otto Energy OEL $122.6M Molton Holdings 0.1374 0.1243
PPK Group PPK $104.1M Equipment Company of Australia 0.1345 0.1189
PPK Group PPK $104.1M Wavet Fund 0.1921 0.1698
PPK Group PPK $104.1M Ignition Capital 0.0619 0.0548
Prescient Therapeutics PTX $17.7M National Nominees 0.1524 0.112
Catalyst Metals CYL $140.1M St Barbara 0.16 0.141
Northern Minerals NTU $148.8M Hutai Mining 0.1105 0.0892
PPK Group PPK $104.1M McNamara Super Group 0.0625 0.0564
Mpower MPR $3.8M KV Management 0.0708 0.0572
Mobilicom MOB $27.0M Yossi Segal 0.143 0.121
Flexiroam FRX $9.0M Kenn Tat Ong 0.218 0.201
Flexiroam FRX $9.0M Tat Seng Koh 0.086 0.079
Flexiroam FRX $9.0M Thian Choy Ong 0.216 0.198
Marmota MEU $10.7M Colin Rose 0.1346 0.123
Northern Minerals NTU $143.1M Colglin Yue 0.1342 0.1044
Mobilicom MOB $27.0M Oren Elkayam 0.1717 0.1459
Building IQ BIQ $13.7M Siemens Venture Capital 0.1457 0.1254