AnteoTech Limited (ASX: ADO)

ADO was incorporated in 1995, which is involved in development and commercialisation of intellectual property of specialised surfaces which are used in diagnostics, life sciences, energy and medical devices markets. Its products are AnteoCoat, AnteoBind and AnteoRelease. The company’s market capitalization stood at AUD 552.73 million as of 10^th January 2022.

Financial and Operational Updates: On 22^nd December 2021, ADO received a cash refund of AUD 1.96 million related to FY21 from Federal Government’s Research & Development. As per the 15^th December 2021 announcement, the company received a feedback and had been asked to provide more information related to its EuGeni Reader and SARS CoV-2 Ag Rapid Diagnostic Test (RDT) submission from Therapeutic Goods Administration (TGA). As per its quarterly report on 28^th October 2021, it lodged four new provisional patent applications and intends to expand its distributorship to nine, covering over 17 territories. ADO’s sales receipts for 1QFY22 were ~AUD 135k and closed the quarter with a cash balance of ~AUD 18.35 million at the end of 30th September 2021 versus ~AUD 21.39 million at the end of 30th June 2021. As per its Annual Report, it reported a ~90% Y-o-Y increase in its revenue and other income to ~AUD 2.42 million and a ~99% Y-o-Y increase in net loss of ~AUD 6.22 million for FY21.

Technical Analysis: AOD's prices are facing strong resistance from a horizontal trend line at AUD 0.320, indicating the possibility of a downside correction. The prices are placed above the trend following indicators 21-period SMA and 50-period SMA, supporting a positive stance. On the weekly chart, the leading indicator RSI (14-period) has reversed from the higher levels and currently trading at ~53.36 levels. Now an immediate support level for the stock appears at AUD 0.225 while the resistance is at AUD 0.285.

Due to subdued financials and current price levels, investing in this stock at such uncertain levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.250 per share, down by ~10.715%, as of 10^th January 2022.

Weekly Technical Chart – ADO

Source: REFINITIV

Province Resources Limited (ASX: PRL)

PRL was formerly known as ScandiVanadium Limited, it is involved in exploration and development of gold, copper, nickel, cobalt, vanadium, and other minerals. Its projects include HyEnergy Project, Gascoyne Project, Gnama Nickel Project, Skane Vanadium Project, Pascalle Gold Project and Gascoyne Project. The company holds a market capitalization of AUD 163.80 million as of 10^th January 2022.

Operational Updates – On 20^th December 2021, its HyEnergy green hydrogen project got awarded as Lead Agency status by Western Australian Government. Phase 1 Air Core Drilling commenced at Gnama North Project from 14^th December 2021, whereas the same at Gnama South Project will start in 1HFY22. As per its HyEnergy Export update, its designing phase was completed by lead consultant WSP and the engineering workstream is to be commenced in January 2022. As per its quarterly report on 28^th October 2021, during the first quarter the company signed an MoU with Global Energy Ventures (ASX: GEV) in order to proceed with technical and commercial feasibility of exporting of green hydrogen from its HyEnergy Project. PRL’s sales receipts for 1QFY22 were reported as nil and closed the quarter with a cash balance of ~AUD 23.31 million at the end of 30th September 2021 versus ~AUD 23.60 million at the end of 30th June 2021. As per its Annual Report, it reported an increase in net losses from ~AUD 1.73 million for FY20 to ~AUD 14.49 million in FY21.

Technical Analysis: On the weekly chart, PRL stock prices are trading in a symmetrical triangle pattern and prices are sustaining above the lower band of the pattern and taking support of the same. Moreover, the prices are trading above the trend-following indicator 50-period SMA, which may act as a support level for the stock. The momentum oscillator RSI (14-period) is trading at ~48.87 that indicating lack of momentum. An Immediate support levels are AUD 0.130 while immediate resistance levels are AUD 0.160.

Since PRL is still on the pre-revenue (from operations) stage and keeping its huge losses in FY21 and current trading levels into consideration, a ‘Watch’ stance is suggested, as investing in this stock at such indecisive price levels should be taken with prudent approach. The stock was analyzed as per the closing price of AUD 0.145 per share, as of 10^th January 2022.

Weekly Technical Chart – PRL

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 represents the Trendline.

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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