Dalaroo Metals Limited

Dalaroo Metals Limited (ASX: DAL) is a base metals exploration company. The company has Namban Ni-Cu-PGE and Lyons River Zn-Pb-Cu projects covering 1,140 square kilometres with the scale to host significant-sized orebodies.

Financial and Operational Update: The company recently updated that its initial wide-spaced, first pass geochemical sampling programme from its Namban Project has delivered inspiring outcomes that confirm the possibility of exploration within the 437 km2 Namban Project area. The follow-up 50 X 50m infill and strike extension geochemical sampling is in progress at the newly identified Cattady anomaly. Besides, on 16 November 2021, the company mentioned that the RC drilling is proceeding at Lyons River Project testing lead-zinc BHT/SEDEX targets. Firstly, the company emphasises testing the extensions to the critical primary zinc and lead sulphide mineralisation intersected in the recent diamond drill hole LRDD003.

On the financial front, DAL has delivered a net loss of $79,745 for FY21. At the end of the September 2021 quarter, the company's cash balance stood at $5.11 million.

Technical Analysis

The stock is a recently listed entity on exchanges and is not having adequate data to conduct technical analysis.

Source: REFINITIV, Note: Purple color line reflects Relative Strength Index (14-Period)

Stock Recommendation

The company is well funded following the successful completion of its IPO. Further, DAL aims to actively advance its planned exploration programs at its Namban and Lyons River projects. As per the third UAV drone airborne magnetics survey, other areas of interest adjacent to Metals 260 Ltd Mallory anomaly have been identified. The company expects to start the systematic geochemical surveys over magnetic intrusive target areas after the grain harvest.

With limited available financial data and inadequate guidance on results from the management, insufficient data to conduct the technical analysis on the charts, we suggest a “Watch” recommendation on the stock at the closing market price of A$0.14 per share, up 7.692% as of 30^th December 2021.

Brookside Energy Limited

Brookside Energy Limited (ASX: BRK) is an Australian-based company. The company has built deep and valued relationships in the oil and gas sector, emphasising the mid-continent region of the United States.

Financial and Operational Update: The company recently updated operations from Brookside’s second well in the SWISH Area of Interest (AOI) in the globally renowned Anadarko Basin, the high-impact Rangers 36-25 SXH 1 Well (Rangers Well). The drilling activities at the Rangers Well have been progressing in the vertical section at a depth of ~8,640 feet as of ~7.30 am CDT on 21 December 2021. Besides, in the quarterly activities report for the third quarter of 2021, the company updated that the Jewell Well commenced production and achieved better-than-expected rates (1,238 BOE per day, 85% liquids) in early flowback.

On the financial front, BRK has generated sales receipts of ~A$0.40 million in the third quarter of 2021, without considering the significant impact of revenue generated by the Jewell Well production during the quarter, which the company will start recognising in the fourth quarter. At the end of the September 2021 quarter, the cash and cash equivalents stood at A$11.08 million.

Technical Analysis

Daily Price Chart

Note: The purple color line in the chart depicts RSI (14-period), while the yellow color line represents the trend line. The sky-blue and red-color lines show 21-Period SMA and 50-Period SMA, respectively. The green-color histogram at the bottom of the charts represents volumes.

On the daily chart, BRK's prices are trading in a descending channel formation for the past 5 months and currently trading around the upper band of the pattern. On the daily chart, the leading indicator RSI (14-period) is hovering around mid-point and trading at ~52.27 levels. The trend-following indicator 21-period SMA is sustaining below the CMP and supporting an up-move; however, 50-period SMA is sustaining above the CMP, which may act as resistance level for the stock. Now an immediate support level for the stock is placed at AUD 0.0170 while resistance is at AUD 0.0230 level.

Stock Recommendation

With a debt-free position and unhedged, the company is in a strong cash position and increasing revenues from oil and gas sales. The company witnessed a substantial rise in its holdings by acquiring prime acreage adjacent to the Rangers DSU. This has resulted in increasing the SWISH AOI acreage position by 13%. This will enable the company to improve Rangers Well's economics further.

Therefore, considering the facts above and the current trading levels, we give a “Watch” recommendation on the stock at the closing market price of A$0.020 per share as of 30^th December 2021.

Vection Technologies Limited

Vection Technologies Limited (ASX: VR1) is a multinational software company. The company focuses on real-time technologies for industrial companies’ digital transformation. Through the usage of 3D, virtual reality, augmented reality, Industrial Internet of Things (IoT), AI, ICT and CAD solutions, the company assists organizations in innovating, collaborating and creating value.

Financial and Operational Update: On 2 December 2021, the company updated that its FY22 TCV has outperformed its first half milestone objective, with the TCV rising to $11 million, an increase of 120% against the first-quarter level. On 22 December 2021, the company advised that its TCV of $11 million has enabled in delivering H1FY22 revenue guidance of $8 to $9 million. Further, the company provides revenue guidance of $17 to $19 million for FY22. Moreover, VR1 expects the cash receipts from clients in Q2FY22 to surpass $3.5 million, which would translate into half-year cash receipts from clients of over $6.3 million.

On the financial front, VR1 has achieved a 172% increase in cash receipts to ~2.8 million in September 2021 quarter versus the quarter ended June 2021. Further, the company has a strong cash balance of ~$6.8 million as of 30 September 2021, providing further confidence in pursuing the aggressive 2021 growth strategy.

Technical Analysis

Daily Price Chart

Note: The purple color line in the chart depicts RSI (14-period), while the yellow color line represents the trend line. The sky-blue and red-color lines show 21-Period SMA and 50-Period SMA, respectively. The green-color histogram at the bottom of the charts represents volumes.

On the daily chart, VR1's prices are trading below a downward sloping trend line breakout level, indicating a downside direction for the stock. On the daily chart, the leading indicator RSI (14-period) is trading below mid-point at 45.12 levels, supporting a negative bias. The trend-following indicator 21-period SMA and 50-period SMA are sustaining above the CMP and may act as rsistance levels for the stock. Now an immediate support level for the stock is placed at AUD 0.115 while resistance is at AUD 0.160 level.

Stock Recommendation

The company stated that its robust global client base assures to increase major multinational sales channels across consultancy firms clients. Further, the company is placed to leverage the programmatic acquisition method to accelerate XR organic growth over 2022 and 2023, which will enable sustaining shareholder return.

Considering the factors above and the current trading levels, we give a “Watch” recommendation on the stock at the closing market price of A$0.135 per share, down 10.00% as of 30^th December 2021.

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 on 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 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 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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