Traffic Technologies Ltd. (ASX: TTI)

TTI provides traffic control and monitoring products that include SmartCity traffic control systems, LED road, and streetlights. The company’s products are integrated into central control management systems using Internet of Things sensors. TTI holds a market capitalization of $18.05 million as of March 14, 2022.

Recent H1FY22 Spotlight: As per its H1FY22 results, TTI posted a 4% Y-o-Y upsurge in revenue to ~$27.13 million. It had witnessed a healthy order book with an increase in infrastructure expenditure by the Federal and State governments. The company operated through the lockdowns and COIVD-19 restrictions. It had maintained consistent EBITDA of $2.2 million, in line with the last year despite supply chain disruptions, particularly in NSW and VIC wherein sales showed some delays. It had raised $7.2 million through a rights issue and private placement. It had repaid $6 million of the ADM debt facility through the proceeds. It had posted a net loss of $0.33 million in H1FY22 in contrast to a net loss of $0.06 million mainly due to an increase in financing costs associated with the early debt repayment. Net debt as of December 2021 stood at $8 million as compared to $11.8 million posted in the prior year.

TTI closed the quarter ending December 2021 with a cash balance of $2.12 million, up from $1.54 million reported in the preceding quarter.

Technical Analysis: On the daily chart, TTI stock price broke the falling trendline resistance and prices are sustaining above the rising trend line support zone. Further, the leading indicator RSI (14-period) is trading at ~44.16 level. However, the prices are trading below the trend-following indicators 21-period, which may act as a resistance zone.  An important support level for the stock is placed at AUD 0.023 while the key resistance level is placed at AUD 0.029.

Considering the resilient nature of business, increased infrastructure spending by the government supporting healthy order book, reduction in net debt, adequate cash balance, trading levels, investors with a high-risk appetite might consider a ‘Speculative Buy’ position. The stock was analysed as per the current price of AUD 0.025, 11:29 AM (GMT+10), Sydney, Eastern Australia as of 14^th March 2022. However, the risk levels are high depending on the lockdown fears impacting supply delays and dearth in budget following the quantitative tightening by the government.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

TTI Daily Technical Chart, Data Source: REFINITIV  

Trigg Mining Limited (ASX: TMG)

TMG is engaged in the exploration of sulphate and potassium. Its projects include the Lake Throssell project, Lake Rason project, and Lake Yeo project. As of March 14, 2022, TMG holds a market capitalization of $11.22 million.

Recent Financial and Operational Highlights: As announced on February 24, 2022, TMG’s 100% owned Lake Throssell project to receive an infrastructure boost following the announcement by the Federal and State government funding to complete the sealing of the Outback Way linking Laverton in WA to Winton in QLD. On February 16, 2022, Micheal Ralston ceased to be a substantial shareholder. The company’s $3.3 million rights issue received an overwhelming response from institutional and professional investors, and it was oversubscribed. Following the proceeds, TMG’s cash reserves is expected to reach $7 million.

During the quarter ending December 31, 2021, the company completed the scoping study at its Lake Throssell Sulphate of Potash project. It had nil revenue-generating assets. It had posted negative operating cash flows of $1.07 million and closed the period with a cash balance of $2.3 million as of December 31, 2021.

Technical Analysis: On the daily chart, TMG prices are trading below the rising trend line support level and facing the resistance of the trendline. Moreover, the momentum oscillator RSI (14-period) trading at ~48.981 level, indicating a lack of momentum in the prices. However, the prices are trading above the trend-following indicator 21-period SMA, which may act as a support level.  An important support level for the stock, is placed at AUD 0.050 while the key resistance level is placed at AUD 0.085.

After considering the nil revenue generation, negative operating cashflows, current trading levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.069 per share, up by ~4.545% as of 14^th March 2022.

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.

TMG Daily 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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