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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 small and mid cap shares. 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 by basic human decency (and the law) 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%.
The becoming and ceasing to be a 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.
Markets have continued to remain turbulent during the final month of the Australian 2022 financial year. The local bourse had its worst session on Tuesday, June 14 since March 2020. The S&P ASX 200 has fallen more than 8% in the past month with all sectors bar energy and consumer staples in the red for the month.
The familiar tune of 2022 continues to play with investors nervous on the back of rising inflation, hawkish central banks and slowing economies.
Whether it’s routine re-balancing of portfolios at EOFY, trying to grab a bargain or prevent future losses, the last fortnight of June has been some large buys and sell-offs on the ASX. Resources stocks seem in high demand, particularly gold, while hard hit tech and health stocks have experienced sell-offs.
In fact, Emma Davies just today has listed the biggest tech losers at the FY close. In case you were wondering.
| Code | Company | Market Cap | Date of change | Holder | Stake |
|---|---|---|---|---|---|
| SLR | Silver Lake Resources | $1.15B | 16/6/2022 | First Sentier Investors Holdings & listed related bodies corporate | 5.06% |
| CVR | Cavalier Resources | $8.39M | 17/6/2022 | Daniel Tuffin | 6.92% |
| CVR | Cavalier Resources | $8.39M | 17/6/2022 | PG Mining Pty Ltd | 24.12% |
| CVR | Cavalier Resources | $8.39M | 17/6/2022 | Ranko Matic | 10.91% |
| CXO | Core Lithium | $1.70B | 22/6/2022 | State Street Corporation & subsidiaries named | 5.51% |
| OZL | OZ Minerals | $5.94B | 23/6/2022 | State Street Corporation & subsidiaries named | 5.38% |
| LNK | Link Administration Holdings | $1.95B | 23/6/2022 | State Street Corporation & subsidiaries named | 5.46% |
| WGX | Westgold Resources | $563.30M | 27/6/2022 | First Sentier Investors Holdings & listed related bodies corporate | 6.10% |
| SBM | St Barbara | $628.52M | 27/6/2022 | First Sentier Investors Holdings & listed related bodies corporate | 6.05% |
| PSC | Prospect Resources Limited | $431.15 | 23/6/2022 | Credit Suisse Holdings (Australia) on behalf of Credit Suisse Group AG & affiliates | 6.32% |
| CHN | Chalice Mining | $1.42B | 23/6/2022 | Credit Suisse Holdings (Australia) on behalf of Credit Suisse Group AG & affiliates | 5.94% |
Gold aspirant Cavalier Resources ASX:CVR) executive chairman Ranko Matic and executive technical director Daniel Tuffin became substantial shareholders in the company when it listed on the ASX on June 17.
It is the second successful IPO in just six months for Matic and Daniel Tuffin, who together rang the bell for nickel, cobalt and gold explorer Panther Metals (ASX:PNT) in December 2021.
Private company PG Mining, which specialises in equipment for the mining industry, including patented spring suspension clips to use in rock bolting, has also become a substantial shareholder.
CVR has three projects ranging from near term mining to early stages exploration.
US financial service giant State Street Corporation (NYSE:STT) has been buying into Australian resources stocks including Core Lithium (ASX:CXO) and Oz Minerals (ASX:OZL).
State Street also took the opportunity to buy into embattled Link Administration Holdings (ASX:LNK). The company has seen its share price plummet recently on the back of the ACCC not looking favourably on a takeover bid.
| Code | Company | Market Cap | Date of change | Holder |
|---|---|---|---|---|
| PRN | Perenti Global | $472.83M | 27/5/2022 | Mitsubishi UFJ Financial Group |
| PRN | Perenti Global | $472.83M | 27/5/2022 | Morgan Stanley & listed subsidiaries |
| JRV | Jervois Global | $927.67M | 30/5/2022 | Citigroup Global Markets Australia & related bodies corporate in Citigroup of companies worldwide |
| JRV | Jervois Global | $927.67M | 1/6/2022 | Koboltti Chemicals Holdings & each person listed |
| VRT | Virtus Health | $710.84M | 3/6/2022 | Evergreen BidCo Pty Ltd (CapVest BidCo) |
| BEX | BikeExchange | $8.58M | 30/5/2022 | SG Hiscock & Company Ltd |
| LBY | Laybuy Group | $5.38M | 1/6/2022 | Bombora Investment Management as trustee for Bambora Special Investment Growth Fund |
| KGN | Kogan.com | $325.06M | 6/6/2022 | JPMorgan Chase & Co & affiliates |
| MP1 | Megaport | $965.06M | 6/6/2022 | UBS Group AG & related bodies corporate |
| PDI | Predictive Discovery | $262.06M | 7/6/2022 | Franklin Resources & its affiliates |
| IPD | ImpediMed | $127.80M | 9/6/2022 | Allan Gray Australia Pty Ltd & related bodies corporate |
| BNO | Bionomics | $69.47M | 13/6/2022 | William Blair & Company, L.L.C. |
| BNO | Bionomics | $69.47M | 13/6/2022 | Evercore Group L.L.C |
| OPY | Openpay Group | $24.58M | 6/6/2022 | Credit Suisse Holdings (Australia) on behalf of Credit Suisse Group AG & affiliates |
| CUV | Clinuvel Pharmaceuticals | $681.86M | 9/6/2022 | JPMorgan Chase & Co & affiliates |
Several ASX health stocks saw investors ceasing to be substantial shareholders. The S&P/ASX 200 healthcare index has felt more than a little off colour with this year’s volatility, falling more than 13% year to date.
Wound care company Polynovo (ASX:PNV), one of Australia’s largest full line pharmacy wholesalers Sigma Healthcare (ASX:SIG) and personal protective equipment provider Ansell (ASX:ANN) have all seen sell-offs by substantial shareholders.
The ecommerce space has felt recent sell-offs in growth stocks with several companies seeing substantial shareholders bailing out.
Disclosure: The author held shares in Link Administration Holdings (ASX:LNK) at the time of writing this article.
At Stockhead, we tell it like it is. While Panther Metals is a Stockhead advertiser, it did not sponsor this article.
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