Cycliq Group Ltd. (ASX: CYQDF)

CYQDF is based in Subiaco, Australia. The company is engaged in the production and sales of HD bike cameras and safety lights across various geographies as Australia, the US, the UK, etc. It offers cycling safety and action camera solutions, accessories, and desktop, smartphone, ANT+, and firmware software for commuters, mountain bikers, racers, and professional cyclists. 

Fundamental Highlights and Updates-

Recently the company announced to raise $4.6 million through its convertible notes of $0.5 million and fully underwritten right issues of $4.1 million, and the proceeds will be used for manufacturing products, enhancing its supply chain process, along developing e-commerce products for its innovative products offering. The group saw a sharp decline in cash receipts from its customers by 90% to $0.19 million for the 31^st March 2021 as compared to the $2.02 million on 31^st Dec 2020. This sharp drop resulted in negative cash outflows from operations of $1.03 million on 31^st March 2021. The cash and cash equivalents also witnessed a drop to $0.13 million on 31^st March 2021 as compared to the $1.36 million on 31^st December 2020. CYQDF posted a loss of $1.64 million in H1FY21.

Technical Analysis- The stock is in a continuous downtrend past few years, after printing the lifetime high of $0.577, eroding 96.5% of its value from its peak price. The Relative Strength Index is showing 39.17, which is in the middle of the zone, eliminating any strong trend bias in the near term. The 21 Days Simple Moving Average is $0.026 which is above the closing price of the stock and indicating a further downtrend in the near term. The support is placed at $0.013, which is at the lifetime lows of the stock price. For the stock to make any move, the resistance of $0.042 needs to be pierced with strong volumes.

Declining operating revenues and cash balances, along with the plummeting stock prices hovering close to lifetime lows, we suggest investors to ‘Avoid’ the stock at the closing price of $0.020, down by 4.76%, as of 15^th July 2021.

Daily Technical Chart – CYQDF

Source: REFINITIV

Analytica Limited - (ASX: ALT)

ALT was incorporated in 1985 and is based in Brisbane, Australia. The company is engaged in the Research and Development of medical devices in Australis, the US and UK. Its flagship product is PeriCoach System, an e-health treatment system for women used in the treatment of stress urinary incontinence.

Fundamental Highlights- The company recently announced to raise $3.83 million, and the proceeds will be used to strengthen its production facility and expansion across different geographies. The company failed to record any cash receipts from its customer for the past three quarters ending on 31^st March 2021. There were negative cash flows from operations on 31^st March 2021 of $0.38 million as compared to the positive cash flows from operations of $0.14 million on 31^st Dec 2020. The cash and cash equivalents also witnessed a drop to $0.26 million on 31^st March 2021 as compared to $0.65 million reported in the preceding quarter. During 1H FY21, ALT posted a net loss of $0.45 million.

Technical Analysis- The stock saw the continuous downtrend forming lower highs and lower lows since 2015 and currently hovering at the lows of $0.0025. The Relative Strength Index is currently showing 47.01, which is in the middle range, devoid of any strong trend formation in the near term. The 21 Days Simple Moving Average is placed above the stock price at $0.0029, which again hinting the downtrend in the stock. For the stock to currently hold the ground, the support of $0.002 should be respected, and for the uptrend, the resistance of $0.0035 should be pierced with strong volumes.

With the absence of operating revenues, depleting cash balances, along with the plummeting stock prices hovering close to lifetime lows, we suggest investors to ‘Avoid’ the stock at the closing price of $0.0025 as on 15^th July 2021.

Weekly Technical Chart - ALT

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

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