Antisense Therapeutics Limited (ASX: ANP)

An Australian biotechnology company which develops and sells antisense pharmaceuticals to the unmet and untouched market of the rare diseases. Its two main products are ATL1103 and ATL1102. ANP was incorporated in 2000 and holds market capitalization at AUD 138.14 million as of 19th November 2021.

Financial and Operational Updates: As per the Quarterly Update on 29^th October 2021, a large scale of protein analysis on ATL1102 (Phase II) treated on non-ambulant DMD patients following which the company has filed with Australian Provisional Patent on 20^th September 2021. While the company continues to gauge biological effects. Moreover, ANP received positive feedback for Duchenne Muscular Dystrophy (DMD) from the Paediatric Committee (PDCO) of the European Medicines Agency (EMA) for its ATL1102 product. The cash balance was reported as ~AUD 4.73 million at the end of 30^th September 2021 versus ~AUD 6.02 million at the end of 30^th June 2020. As announced on 1^st November 2021, a total of AUD 20.00 million of capital was raised which is intended to be used in:

• In the progress of Phase IIb/III of DMD clinical trial
• R&D and manufacturing of Drugs
• Other working capital means

As per the 4E and Full Statutory Report released on 25^th August 2021, its revenue was reported as ~AUD 4.18k in FY21 versus ~AUD 30.53k in FY20, a ~93.10% decrease. Its net losses after tax of ~AUD 5.91 million in FY20 increased by ~36.43% to ~AUD 8.06 million for FY21.

Technical Analysis: ANP prices are sustaining above the rising trend line support level at AUD 0.18 and continuously taking support of the same on the weekly chart. Moreover, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as a support level. The leading indicator RSI (14-period) is trading at ~47.92 level indicating lack of direction in the trend. The important support level for the stock is placed at AUD 0.175 while resistance level is at AUD 0.257.

Considering the recent capital raise for its Phase IIb & III of ATL1102 and scrip’s possible upside movement, it is prudent to suggest the investors with a high-risk appetite a ‘Speculative Buy’ stance along with incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current market price of AUD 0.200 per share, as of 19th November 2021, 12:58 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are extremely high in view of the further updates on Phase IIb & III of ATL1102.

Weekly Technical Chart – ANP

Source: REFINITIV

Stavely Minerals Limited (ASX: SVY)

Incorporated in 2006, SVY is a gold-copper-silver exploration and development company. Its projects include Stavely Project, Ararat Project, and Yarram Park Project. The current market capitalization as of 19th November 2021 was reported at AUD 134.39 million.

Financial & Operational Updates – As per the Quarterly Update on 27^th October 2021, significant assay results were found from the SMD159 drilling hole and SMD147 drill hole also intersected shallow gold mineralisation including 6.2m at 1.38g/t Au, from 11.8m down hole and mixed copper-gold-silver zone. A drill access to the paddock south of the railway line was granted to start drilling from 1^st December. Its sales receipts for 1QFY22 were reported as ~AUD 10k and SVY closed the quarter with a cash balance of ~AUD 11.14 million at the end of 30^th September 2021 versus ~AUD 13.82 million at the end of 30^th June 2021. On 14^th October 2021 update, Stavely Project encompassing 115km is expected to commence its Largest Regional Exploration initiative since 1970. As per the annual report for FY21 released on 14^th September 2021, total revenue was reported as ~AUD 0.19 million in FY21 while the net losses increased to AUD 21.17 million in FY21 versus ~AUD 15.31 million in FY20, owing to the hike in Exploration Expenses which were shown as ~AUD 19.29 million for FY21.

Technical Analysis: After making a low of AUD 0.360 in October 2021, SVY’s prices have witnessed an upside movement. Currently CMP is trading above both of its moving averages, together with 21-period SMA had also crossed its 50-period SMA from below, indicating a bullish stance. The RSI (14-period) is trading at ~55.715, also indicates a positive momentum in the stock. The immediate support level is at AUD 0.450, while the resistance level is AUD 0.580.

With the incorporation of the support and resistance as one of the tools while analysing the investment opportunity, on the basis of recent developments on its projects and drilling update, it is prudent to suggest the investors with a high-risk appetite a ‘Speculative Buy’ stance. The stock was analysed as per the current market price of AUD 0.500 per share, as of 19th November 2021, 11:45 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are extremely high in view of the further updates on its projects and the fluctuations in commodities prices.

Daily Technical Chart – SVY

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 reflects the Trendline, which shows whether the direction of the scrip is upwards or downwards.

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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