2 ASX Stocks Under Investors’ Lens - BSX, WCG

Blackstone Minerals Limited (ASX: BSX)

BSX is an exploration company operating Ta Khoa, Gold Bridge, Silver Swan South, Red Gate, and Middle Creek Projects.

Financial and Operational Updates: On March 22, 2022, BSX has entered into an At-the-Market Subscription Agreement with Acuity Capital that gives BSX access to up to $25 million of standby equity capital over the period to July 2024. On March 3, 2022, BSX made a strategic investment in Coraozon Mining Limited for $2 million. In H1FY22, BSX posted a net loss of $12.82 million as compared to a net loss of $6.96 million in the prior period.

Technical Analysis: On the weekly chart, BSX prices are trading below the rising trend line resistance zone and facing the resistance of the trendline. Moreover, prices are trading below the trend-following indicator 21-period SMA, which may act as a crucial resistance zone. The momentum oscillator RSI (14-period) is trading at ~37.137 level, indicating negative momentum. An important support level for the stock, is placed at AUD 0.330 while the key resistance level is placed at AUD 0.450.

Considering the substantial losses, nil core revenues, and current trading levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.385 per share, as of 30^th March 2022, down ~1.283%.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

BSX Weekly Technical Chart, Data Source: REFINITIV 

Webcentral Ltd (ASX: WCG)

WCG provides IT services like domain name registration, website development, e-mail hosting, search engine marketing, etc. to small businesses in Australia.

Financial and Operational Updates: On March 14, 2022, WCG implemented a sale facility for its shareholders who holds less than $500 worth of fully paid shares. The company proposed to issue about 882.8k shares under Employee Share Plan. In H1FY22, WCG posted revenue of $48.0 million as compared to $39.6 million in H1FY21. Due to sizeable expenses on employee costs and network/data center costs, it had posted a net loss after tax from continuing operations of $10.85 million as compared to a net loss of $2.26 million in the prior year.

Technical Analysis: On the weekly chart, WCG prices are trading below the falling trend line resistance zone and facing the resistance of the same. Moreover, prices are trading below the trend-following indicator 21-period SMA, which may act as a crucial resistance zone. The momentum oscillator RSI (14-period) is trading at ~39.488 level, indicating bearish momentum. An important support level for the stock, is placed at AUD 0.250 while the key resistance level is placed at AUD 0.370.

Considering the significant employee-related costs and resultant losses, the drastic drop in cash balance as of December 31, 2020, and current trading levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.300 per share, as of 30^th March 2022, down ~1.640%.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

WCG Weekly Technical Chart, Data 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 analysis has been achieved and is subject to the factors discussed above alongside support levels provided.

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.

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

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