Equus Mining Limited (ASX: EQE)

EQE was listed on ASX in 1995 and it is an Australian company involved in mining, discovery, exploration and development of silver and gold. Its projects include Cerro Bayo Mine District, Los Domos and Cerro Diablo Project. Its market capitalization stood at AUD 31.33 million as of 17^th February 2022.

Operational Updates & 2QFY22 Financial:

• On 9^th February 2022, Mr Mark Lochtenberg became substantial shareholder by gaining the voting power of ~7.17% in EQE.
• As per the quarterly report released on 28^th January 2022, the company exercised options with Mandalay Resources and acquisition of the Cerro Bayo Project that was effective from 1^st December 2021.
• During the quarter, Mandalay delivered consistent and robust production results and at relatively low price. The company raised ~AUD 3.30 million through a placement of new and existing institutional, sophisticated and directors of the company – issued at ~AUD 0.17 per share.
• A total of ~AUD 1.69 million was spent on exploration and related activities, mainly on Cerro Bayo Project. A total of ~4,294 oz of Au and ~216,040 oz of Ag were produced, whereas ~3,600 oz of Au and ~177,420 oz of Ag were sold till the nine months ending 30^th September 2021.
• With ~AUD 2.82 million of cash receipts from customers, the operating cash outflow stood at ~AUD 0.78 million in the second quarter and cash at the end of 31^st December 2021 was recorded as ~AUD 5.07 million versus ~AUD 4.83 million at the end of 30^th September 2021.

Technical Analysis: On a weekly chart, EQE’s stock prices are sustaining above the upward moving trendline and is taking support of the trend-following indicator of the 21-period SMA. The momentum oscillator RSI (14-period) is placed at ~54.64, reversing from the lower levels. Now the next important support level for the stock is at AUD 0.150, while resistance is at AUD 0.190 level.

With the recent second quarter updates of revenue generation and considering the current price levels, investors with a high-risk appetite might consider a ‘Speculative Buy’ position. The stock was analysed as per the current price of AUD 0.170, 11:40 AM (GMT+10), Sydney, Eastern Australia as of 17^thFebruary 2022. However, the risk levels are high depending on the future findings and their timely commissioning.

Weekly Technical Chart – EQE

Source: REFINITIV

Hipages Group Holdings Ltd (ASX: HPG)

HPG provides SaaS (Software-as-a-service) services and an online trade marketplace. Specializing in home improvement advertising services, it provides an online platform marketplace and connects users with traders. As of 17^th February 2022, the company’s market capitalisation stood at AUD 359.59 million.

Latest News & 2QFY22 Financials:

• As per its 10^th February 2022 notice, the company will announce its 1HFY22 results on 24^th February 2022.
• With the Builderscrack acquisition, the company’s TAM (Total Addressable Market) rose by ~AUD 45 billion.
• As per its 2QFY22 Quarterly Report released on 27^th January 2022, with the record job volumes, its revenue for second quarter was up by ~10% on pcp basis to ~AUD 15.3 million and its recurring revenue is up by ~11% on pcp basis to ~AUD 14.5 million.
• With the ~AUD 15.89 million cash receipts from customers, the company reported a positive operating cashflows of ~AUD 2.88 million. The company closed its second quarter (2QFY22) ending on 30^th December 2021 with a cash balance of ~AUD 13.12 million versus ~AUD 28.4 million posted in last quarter.
• On 14^th January 2022, MUFG and First Sentier Investors Holdings Pty Limited ceased to be its substantial shareholders.

Technical Analysis: On a weekly chart, HPG stock prices are trading below the horizontal trendline and facing resistance of the same. Moreover, prices are trading below the trend-following indicators 21-period and 50-period SMA, indicating negative momentum. However, the momentum oscillator RSI (14-period) is trading near an oversold territory at ~34.25 level, which might indicate the possibility of a rebound in the stock. Now the next important support level for the stock is at AUD 2.400, while resistance is at AUD 3.030 level.

After considering the company’s current technical levels and lack of spark on technical grounds, investing in this stock at current levels must be considered with a careful approach, hence it's suggested to ‘Watch’ and re-evaluate the stock once the prices approach the support & resistance levels. The stock was analyzed as per the closing price of AUD 2.710 per share, up by ~1.812%, as of 17^th February 2022.

Weekly Technical Chart – HPG

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 reflects the Trendline, which shows whether the direction of the scrip is upwards or downwards.

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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