Buddy Technologies Ltd

BUD Details

Robust December Quarter for FY21 - Buddy Technologies Ltd (ASX: BUD) provides data aggregation and management platform for the Internet of things (IoT) and connected devices. The company's segments include Australia, Buddy Platform, Inc. (USA) and other segments. Its platform users represent a range of industries, including airlines, agriculture, automotive, consumer electronics, robotics, software development, telecommunications, and transportation. BUD has posted a significant jump in its customer revenues of 23% QoQ in December quarter of FY21 to reach at A$9.5mn. Similarly, the cash receipts have gone up by 48% QoQ during the same period to reach at A$8.3mn. Net cash increased by A$4.6mn and cash on hand were at A$7.2mn. BUD has registered a positive EBITDA month in November 2020 which is the third EBITDA positive month for CY20.

Revenue Trend (Source: Company Reports) 

Outlook: Buddy Technologies Ltd has announced its expectations on revenues in a range of A$24mn to A$28mn for H2 FY2021. The revenue and EBITDA guidance for H2 FY2021 are derived from actual manufacturing orders placed, contracted and which are paid in part or in full.

Stock Recommendation: In the last 1 month, the stock of BUD has provided a return of 8.51%. The stock is currently trading below the average of its 52-week price range of $0.006-$0.100. On the technical analysis front, the stock has a support level of ~$0.042 and resistance of ~$0.074. Considering, the company’s expectation to be EBITDA positive in 2HFY21, product innovation, growth in customer revenues, decent fundamentals, and current trading level, we give a “Hold” recommendation on the stock at the current market price of $0.052, up by 4% as on 12 Feb 2021.

BUD Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

Diatreme Resources Limited 

DRX Details

Engagement with Community to Progress with its Silica Projects: Diatreme Resources Limited (ASX: DRX) is engaged in producing of mineral and silica sands based in Brisbane. The main projects comprise the Galalar Silica Project in Far North Queensland, with the Cyclone Zircon Project in Western Australia’s Eucla Basin. DRX has started to engage with the community to progress with its Galalar Silica sand mine project in North Queensland. The company is evaluating downstream opportunites for premium quality of Silica product.

Funds Raised through New Investors: DRX has raised funds through placement to new investors and SPP amounted to Circa $7.1mn to support the projected production for FY22.

Positive Cash flows: DRX had a cash balance of A$5.78 million at the end of December 2020 quarter which can be utilised for further expansion.

DRX Projects (Source: Company Reports) 

Outlook: DRX is focusing on getting environmental approvals and mining lease in Q4 CY2021. DRX has plans for expansion in FY21 with exploring 2 high priority Silica sand areas near Cape Flattery.

Stock Recommendation: In the last one month, DRX has increased by 55.5% and by 86.66% during the last 3 months on ASX. The stock is currently trading above the average of its 52-week price range of A$0.005-$0.031. On the technical analysis front, the stock has a support level of ~$0.021 and resistance of ~$0.030. Considering a pick-up in operational activities through community engagement, focusing on premium quality Silica, expansion plans to explore new areas, and positive cash flows, we recommend a “Hold” rating on the stock at the current market price of $0.029 as on 12 February 2021.

DRX Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

Disclaimer  

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as personalised advice.