This report is an updated version of the report published on the 10 February 2023 at 3:55 PM (GMT+11)

1. Horizon Oil Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 248.22mn)

Horizon Oil Limited (ASX: HZN) is an Australia-based oil and gas company, and its segments include New Zealand Exploration & Development, and China Exploration & Development

Business Update:

Results Highlights of 2QFY23:

Key Ratios: During FY22, HZN reported growth in EBITDA margin, which rose from 65.9% in FY22 compared to 51.2% in FY21.

Outlook:

SWOT Analysis:

Technical Commentary:

Stock Recommendation:

2. Latin Resources Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 19mn)

Latin Resources Limited (ASX: LRS) is an Australia-based mineral exploration company focused on developing mineral projects in commodities. The Company’s projects include Cloud Nine Halloysite-Kaolin Deposit, the Salinas Lithium project, the Catamarca Lithium project, the CRC CARE Emissions Reduction Research project and the MT-03 Copper project.

Business Updates:

Results Highlights of 4QFY22:

Key Ratio:  During 1HFY22, the company reported a lower debt-to-equity ratio of around 0.01x compared to the industry median of 0.18x.  

Outlook:

SWOT Analysis:

Technical Commentary:

Stock Recommendation:

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 10 February 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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