Janison Education Group Limited (ASX: JAN)

Incorporated in 2000, JAN through its Janison Insights and Janison Academy provides education technology solutions like e-learning software and online student assessment to schools higher education and corporations. Its market capitalization stood at AUD 286.10 million as of 2^nd November 2021.

Financial & Operational Updates – As per the AGM FY22 Trading Update Presentation published on 29th October 2021, digital education spend is likely to reach USD 404 billion by 2025 globally. EdTech share of spend is likely to grow from 4.8% in 2021 to 5.5%. In October 2021, JAN onboarded around 250 schools in Australia, 60 in US and 50 in UK. Its product ICAS targets a hike of ~20% in gross sales to reach ~AUD 5.7 million in 1HFY22 on PcP. For FY21, its Annualised Recuring Revenue (ARR) increased by ~75% Y-o-Y on PcP and reported as ~AUD 23 million and gross margin calculated as ~55%. On 11^th October 2021, JAN announced the acquisition of Quality Assessment Tasks (QATs), a leading player in conducting tests assessments. As per the Annual Report FY21 published on 24^th August 2021, the company recorded a ~38% Y-o-Y hike in revenue from ordinary activities of AUD 30.21 million in FY21 versus AUD 21.88 million in FY20. The net losses after tax increased by ~49% to ~AUD 3.24 million for FY21 as against loss of ~AUD 2.17 million in FY20. Cash at the end of 30^th June 2021 was reported at ~AUD 23.14 million (with no debt) versus ~AUD 11.10 million at the end of 30^th June 2020.

Technical Analysis: Technical Analysis: On a weekly chart, JAN prices are trading in a rising channel pattern and currently prices are hovering around the upper band of the pattern and making all time high at AUD 1.295 since 2018. The momentum oscillator RSI (14-period) is trading in an overbought zone at ~82.409 level, which indicate the possibility of a downside correction from the higher levels. However, prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as a support levels. The crucial support and resistance levels are AUD 1.045 and AUD 1.295, respectively.

Considering its prices trading at higher levels and RSI in an overbought zone, getting the scrip at this time might burn the investors’ pockets, therefore A ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 1.215 per share, down by ~1.220%, as of 2^nd November 2021.

Weekly Technical Chart – JAN

Source: REFINITIV

DroneShield Limited (ASX: DRO)

DRO was incorporated in 2015, deals in developing and commercialising the software and hardware technology drone detection and security to maritime, terrestrial, and airborne platforms. Its market capitalization stood at AUD 73.18 million as of 2^nd November 2021.

Financial and Operational Updates: As per the quarterly updates for the period ending 3QFY21 (September) released on 26^th October 2021, it had achieved a major milestone of integrating with the US Air Force MEDUSA system. DRO is set launch SaaS and DroneSentry-C2 which is expected to hit the market in January 2022. The Cash Receipts were up by ~800% Y-o-Y and reported as ~AUD 1.7 million (excluding AUD 1.1 million of government grant) for 3QFY21. Cash on hand at the end of 30^th September 3QFY21 was reported as ~AUD 12.1 million versus ~AUD 14.25 million during the preceding quarter period. It has order pipeline of AUD 230 with increasing focus on the US and Australian Government customers. In the half-yearly reporting, DRO reported revenue increase of ~87% for 1HFY21 to ~AUD 6.7 million. The Net Losses narrowed by ~61% from ~AUD 1.71 million in 1HFY20 to ~AUD 0.45 million in 1HFY21.

Technical Analysis: DRO stock prices are continuously consolidating in the range of AUD 0.145 to AUD 0.225 range from the past 4 months. Moreover, the price is trading below its 21-period SMA, which may act as a crucial resistance zone in short term. The momentum oscillator RSI (14-period) is trading at ~50.13 level, indicating lack of strength in the prices.  An important support level for the stock is placed at AUD 0.165, while the key resistance is at AUD 0.2050.

Due to its current prices’ indecisiveness, a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.180 per share, up by ~2.857% as of 2^nd November 2021.

Weekly Technical Chart – DRO

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 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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