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Trading Places is Stockhead’s semi-regular, pretty damn fascinating recap of the latest red flag buying and selling of ASX stocks. It is here that the rubber really hits the road for fund managers, stakeholders, distant (and not-so-distant) relatives and other famous or infamous investors.
Specifically, Trading Places tracks substantial shareholder movements – namely when a trade in a company’s stock crosses or falls below the 5% threshold.
Substantial shareholders are usually directors, individual investors, institutional investors… or their distant (and not-so-distant) relatives, which they will refer to as listed related bodies corporate or something similar. You can see in detail these listed bodies on the company’s ASX announcement.
Shareholders are required to publicly declare via the exchange when their personal stake goes below or above 5%, and from there, every movement in their holdings while owning above 5%.
Those becoming and those ceasing to be substantial shareholders are the ones we think are worth noting, where a trade takes an investor over the 5% threshold or has them drop back below.
Here’s the form to get you started, if reading this makes you twitchy.
There was little joy for investors in December with traditional Christmas rally not eventuating in 2022 and the ASX slumping after gains in October and November. According to S&P Dow Jones Indices (S&P DJI) latest report the S&P/ASX 200 dropped 3.21% in December.
All 11 sectors were in the red. The S&P/ASX MidCap 50 lost 4.63%, the S&P/ASX Small Ordinaries fell 3.73% and the S&P/ASX Emerging Companies dropped 3.56%.
Changes in substantial holdings slowed down throughout December in line with festive holidays but here’s some that got our attention at the month’s end.
Swipe or scroll to reveal full table. Click headings to sort
| Code | Company | Market cap | Date | Holder | Holding |
|---|---|---|---|---|---|
| TNE | Technology One | $4.34B | Dec-16 | Mitsubishi UFJ Financial Group | 5.04% |
| EVN | Evolution Mining | $5.75B | Dec-21 | State Street Corporation & subsidiaries named | 5.41% |
| CCX | City Chic Collective | $106.03M | Dec-22 | Mitsubishi UFJ Financial Group | 5.01% |
| BBN | Baby Bunting | $376.39M | Dec-21 | Commonwealth Bank of Australian & related subsidiaries listed | 5.09% |
| BMN | Bannerman Energy | $244.04M | Dec-21 | Macquarie Group & Corporate bodies listed | 5.01% |
| BGA | Bega Cheese | $1.19B | Dec-21 | Norges Bank | 5.00% |
It could be green pastures ahead for cheesemaker and Vegemite owner Bega Cheese (ASX:BGA) which tracked the rest of the dairy sector down in 2022 amid rising production costs.
Norway’s Norges Bank became a substantial shareholder in the company on December 21. WA mining magnate Andrew Forrest’s companies also lifted their stake in Bega in 2022.
The BGA share price recovered 10.08% in December and is up 6.08% for the past six months.
Technology One (ASX:TNE) has a new substantial shareholder with Japan’s Mitsubishi UFJ Financial Group buying into the company
For the 13th consecutive year, TNE reported record profit after tax of $88.8m (up 22%), record Annual Recurring Revenue of $274.2m (up 43%), and record SaaS fees of $358.7m (up 22%).
While falling ~7% for the past month, the TNE share price has risen 23% in the past six months.
State Street Corporation saw the shine in gold miner Evolution Mining (ASX:EVN) becoming a substantial shareholder on December 21.
As Stockhead’s Josh Chiat reported experts believe investors could come back to gold in 2023 as the rate rises and cost pressures which have hammered the sector ease.
The EVN share price rose 9.44% in December.
Swipe or scroll to reveal full table. Click headings to sort
| Code | Company | Market Cap | Date of change | Holder |
|---|---|---|---|---|
| ELD | Elders | $1.59B | Dec-21 | State Street Corporation & subsidiaries named |
| 4DX | 4D Medical | $117.89M | Dec-22 | Perennial Value Management |
| AWC | Alumina Limited | $4.43B | Dec-21 | State Street Corporation & subsidiaries named |
| ECX | Eclipx Group Limited | $573.13M | Dec-20 | Commonwealth Bank of Australian & related subsidiaries listed |
| CNR | Cannon Resources | $42.22M | Dec-20 | Rox Resources |
WA focused gold exploration and development company Rox Resources (ASX:RXL) ceased to be a substantial shareholder of nickel exploration and development company Cannon Resources Limited (ASX:CNR) after accepting Kedalion’s offer for the CNR shares it holds.
Rox had held on to a 11.4% stake in Cannon (some 8.55 million shares) after the latter was spun off back in August 2021. Its acceptance of Kedalion’s offer means it now walks away with a $3.8m pay day.
The CNR share price is up ~37% in the past six months.
Medtech 4D Medical (ASX:4DX) saw Perennial Value Management cease to be a substantial shareholder on December 22. 4DX is focused on respiratory imaging and has developed the XV Lung Ventilation Analysis Software.
4DX in November received a $9.4 million payment from the Australian Medical Research Future Fund (MRFF) after successfully meeting product development milestones.
The payment represents an instalment of the $28.9 million Federal Government investment to fund development of the world’s first dedicated lung scanner, the XV Scanner.
The 4DX share price is down ~34% in the past six months.
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