Vulcan Energy Resources Limited (ASX: VUL)

VUL is involved in geothermal energy development and extraction of lithium in Germany. As on 29^th October 2021, the market capitalisation of the company stood at AUD 1.85 billion.

Financial and Operational Updates: As per the Quarterly Cashflow and Activities Report for the Quarter ending  30^th September 2021, released on 29^th October 2021 VUL updated the following:

• Receipts from customers were reported as € 143k for 1QFY22 versus nil in 4QFY21.
• It signed contracts with LG Energy Solution (LEGS), Renault Group and Umicore for supplying lithium chemicals for battery.
• VUL raised AUD 200 million from its existing and institutional investors (incl. ESG institutions), leading to a strong position of cash at AUD 301 million at the end of 1QFY22.
• It had received a 3-year exploration license covering an area of 108km² in Upper Rhine Valley, Germany.

In the responses released on 27^th & 28^th October 2021, VUL responded to the defamation report released by J-Capital, by stating that the report is nothing but a mere attempt to gain from the short-selling of the VUL’s share. It declared all the statements and assertions made by Mr. Murray (Co-Founder, J-Capital) as inaccurate and technically not sufficient. Due to this, it remained on a trading halt on 27^th and 28^th October 2021.

Technical Analysis: After having a minor bump for a brief period, VUL’s price reversed after getting the resistance of the upward sloping trend line supported by good volumes. However, prices are still trading above trend-following indicators 21-period SMA and 50-period SMA. The RSI (14-period) is hovering at ~56.163 level sloping downwards that indicates the stock prices might correct further in the short term. Immediate support levels are AUD 11.54 and AUD 10.90, while immediate resistance levels are AUD 14.36 and AUD 15.45.

The stock has given ~50.90% in the past six months, and due to aforesaid facts, the stock has moved down ~16.54% and experienced a minor hiccup this week. The stock was analysed as per the closing price of AUD 12.51, down by ~16.545%, as of 29th October 2021.

Weekly Technical Chart – VUL

Source: REFINITIV

engage: BDR Limited (ASX: EN1)

Incorporated in 2017, EN1 is an Australian internet-based company providing a marketplace platform and associated technology-related solutions to optimise digital marketing to advertisers and agents. Its market capitalization stood at AUD 9.14 million as of 29^thOctober 2021.

Financial and Operational Updates:  In the recent update on Quarterly Activities, EN1 posted revenues of AUD 10.6 million in Q3 FY21. It had registered receipts from customers of AUD 10.13 million during the nine months ending September 2021. The cash balance stood at AUD 2.29 million, up from AUD 1.42 million posted in the prior quarter. On 4^th October 2021, EN1 roped an arrangement with PubWise for the exchange of services like the purchase of advertising inventory by PubWise and monetisation solutions and technologies to the PubWise’s publishers. On 27^th September 2021, it announced a capital raise of AUD 1.485 million by professional and sophisticated investors by issuing 495,045,300 at a price of AUD 0.003 per share. On the same date, it announced 1:5 bonus shares to be offered as against no consideration to the shareholders, expiring on 3^rd December 2021. As a result of this, EN1 was on a trading halt from 23^rd – 27^th September 2021. On 14^th September 2021, it had signed a letter of intent to acquire ColorTV, a CTV platform.

Technical Analysis: On the weekly chart, EN1 prices are trading in a falling channel pattern and currently prices are hovering around the lower band of the pattern. However, the prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, which may act as a resistance levels. The momentum oscillator RSI (14-period) is trading near an oversold zone at (~35.936 level) which might indicate the possibility of a rebound from the lower levels. An important support level for the stock, is placed at AUD 0.0020 while the key resistance level is placed at AUD 0.0035.

A ‘Watch’ stance is suggested after looking at the long-term flat graph and its indecisive outlook. The stock was analysed as per the closing price of AUD 0.0030 per share as of 29^th October 2021.

Weekly Technical Chart – EN1

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.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.