MENU

How these IPOs fared 1 week later

The first week of a company being on the ASX boards can be very telling. The market doesn’t get any new information until the next quarterly or half-year result, so we can get a sense of the market sentiment from how the share does in its first week.

Of course, how the market treats a share doesn’t ultimately mean anything. But, it can be interesting nonetheless.

Here are how the latest ASX shares fared:

Bounty Mining Limited (ASX: B2Y)

The company is developing the Cook North, Minyango and Wongai coking coal projects in Queensland. Cook, Cook North and Minyango are near Blackwater, whilst Wongai is located near Laura. Bounty has an agreement to acquire the underlying mining leases from Glencore over the next 18 months.

Bounty is looking to expand operations at its Cook Colliery to four underground mining areas and it’s looking to produce around 2.2 Mt each year. Reviews of the locations estimate 459.8 Mt at the Cook Colliery and Cook North Project, 190 Mt at the Minyango Project and 90 Mt at the Wongai Project.

The company started trading today at 11am. Remembering that it raised $18 million of capital $0.35 per share, it is currently trading at $0.41. This means that the share price has risen by 17% on its first day.

Foolish takeaway

Initial public offerings are a great way for investors to buy into the winners of tomorrow before all the other investors pile into it.

Every current blue chip was a new share to the ASX at some stage. However, I don’t believe that Bounty Mining is going to become the next BHP Billiton Limited (ASX: BHP). I’m not going to be buying any Bounty Mining shares, I’m not a fan in general of resource businesses.

I’d much rather put my money towards one of these top shares instead.

Top 3 ASX Blue Chips To Buy

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!