Advanced Human Imaging Ltd (ASX: AHI)

AHI develops health tracking and screening software applications with customers in Australia. Its multi-scan imaging technology caters varied industries including fitness, mobile health, life and health insurance and apparel. Its market capitalization stood at AUD 112.90 million as of 1^st December 2021.

Financial and Operational Updates: In the recent update, AHI concluded its definitive agreement with Cubert Inc. Its health scanning technology will be integrated into Cubert’s FitTrack My Health application. The combined application will be made available in February 2022 covering iOS and Android platform. As announced on November 30, 2021, AHI appointed Mr. Edward F. Greissing Jr as a Non-Executive Director with immediate effect.

On November 23, 2021, AHI raked ~USD 10.5 million public offering in the US market. It had issued one million units at a price of USD 10.50 per unit. Initially it had aimed to raise USD 15 million from public IPO in the US market. AHI mentioned that these proceeds will be utilized towards research and product development and marketing and business development.

In the Q1FY21 update, AHI realized receipts of AUD 107k from customers and closed the period with a cash balance of AUD 332k, lower than AUD 2.23 million reported in the preceding quarter.

Technical Analysis: AHI's prices witnessed a sharp bearish movement in the recent past and currently trading below a long-term upward sloping trend line, indicating a downside direction for the stock. On the weekly chart, the leading indicator RSI (14-period) is trading at ~31.68 levels and the trend following indicators 21-period SMA and 50-Period SMA are placed above the CMP, further supporting a negative bias. Now an immediate resistance level of the stock appears at AUD 0.700 while support is at AUD 0.550 level.

After considering its negligible receipts from customers in Q1FY22, lower than expected IPO proceeds, slump in cash balance, current technical levels, we suggest a ‘Watch’ stance on the stock at the closing price of AUD 0.635, down by ~10.564% as of 1^st December 2021.

Weekly Technical Chart – AHI

Source: REFINITIV

Valor Resources Limited (ASX: VAL)

The company is engaged in exploration activities and is mainly focused on its two key projects in Peru and Canada. The company owns a Peruvian subsidiary, Kiwanda SAC, which holds the rights to the Picha and Berenguela South Projects. These projects comprise of copper-silver exploration activities and include ten granted mining concessions for a total of 6,031 hectares. It also has an interest in Uranium projects in Canada. Its market capitalisation stood at AUD 43.18 million as of 01 December 2021.

Financial and Operational Updates: On 25 November 2021, the company has updated that it has successfully completed A$5.4 million of placement, with the issuance of 319 million of new shares at a price of A$0.0171 per share. VAL plans to utilise the proceeds for the expansion and acceleration of its exploration activities at its two projects in the Athabasca Basin, the Hook Lake and Cluff Lake Projects. It anticipates to commence drilling at its Hook Lake project in January 2022, and is on the lookout for a drilling contractor in this regard. It also plans to commence work programs on its five other uranium projects in the Athabasca Basin. The company has also recently announced that it has received further high-grade copper & silver mineralisation at its Picha Project. It reported a cash ouflow of A$229k from operations in the quarter ended 30 September 2021. The cash position was reflected at A$1.16 million as of 30 September 2021.

Technical Analysis: VAL stock prices are trading below the falling trend line resistance zone at AUD 0.017 on the daily chart and facing the resistance of the same. Moreover, prices are trading below 21-period SMA and 50-period which may act as a crucial resistance zone for the stock. However, the momentum oscillator RSI (14-period) is trading near an oversold zone at (~32.31 level), which indicates the possibility of a rebound in the stock from the current levels. An important support level for the stock is placed at AUD 0.011 while the key resistance level is placed at AUD 0.017.

The successful completion of fundraising, receipt of high-grade copper & silver mineralisation at its Picha Project, and the current trading levels of VAL suggest a ‘Hold’ stance for the investors with a high-risk appetite, keeping the support and resistance levels as crucial points. The stock was analysed as per the closing market price of AUD 0.013 per share, as of 01 December 2021. However, the risk levels are high considering the absence of revenue visibility.

Daily Technical Chart – VAL

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 Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Yellow colour line represents the Trendline.

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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