Talon Energy Limited (ASX: TPD)
TPD is engaged in the exploration and evaluation of oil and gas assets in the United Kingdom North Sea. The key projects are Skymoos Prospect; Rocket Prospect; Thelma, Louise, and Buffalo Prospects; Vantage Prospect; and Chisum, Bluestring/White Bear, and Carnaby projects. The company was incorporated in 2011 and is based in West Perth, Australia, with a current market capitalization of $54.43 million, and a current price of $0.008 per share.
Financial & Operational Highlights – On 26th August 2021, the company shared the update on its Perth Basin, the Operating Strike Energy (ASX: STX), which commenced the drilling and other exploration activities and further activities are under the process to be carried out in September/October this year. On 16th August 2021, the company acquired the licensing rights (60%) for the patented zero CO2 emissions Superheated Steam Technology process that extracts hydrocarbons reducing the CO2 emissions, and the major rights are owned by GreemFlame Energy Pty Ltd. (GreemFlame). On 26th July 2021, the company released its quarterly reporting activity report for the period ending 30th June 2021, stating that the Airborne Electromagnetic Transient Pulse (AEM- PTP) survey was completed over EP447’s Condor structure. To fund the projects and specially to earn the 33% participating interest in Gurvantes XXXV, the company successfully raised $5 million from its current and new institutional and sophisticated investors in March 2021 Quarter.
On the financial front, the company witnessed an increase in revenue for the 2H FY21 ended on 30th June 2021, to $8.22k as compared to $0.21k in 2H FY20 ended on 30th June 2020. The losses have increased to $2.33 million for 2H FY21 as compared to the losses of $174.72k in 2H FY20. The company increased its cash and cash equivalents to $9.5 million in 2H FY21 from $4.66 million in 2H FY20.
Technical Analysis- The stock showed a substantial downtrend, forming lower highs and lower lows with few spikes and printing the lifetime lows of $0.0010, before gaining the momentum slowly off late. The relative strength index is at 45.126 which is in the middle range of the zone, indicating no clear trend formation or continuation from current levels. The 21 days simple moving average is hovering closer to the stock price at $0.0093, indicating the prices are not moving in a clear direction, giving directionless signals from here. For the prices to find stable grounds, the support of $0.005 should be well respected and held firmly, since it is closer to the lift time low and a breach of this level, could further bring pain to the stock price. The resistance is placed at $0.012, breaching those levels can take prices towards the Northward direction.
Due to the accumulating losses, and lifetime low prices of the stocks, we give the stock the rating of ‘Avoid’ at the closing price of $0.008, down by ~11.112%, as of 30th August 2021.
Daily Technical Chart – TPD
Source: REFINITIV
Titomic Limited (ASX: TTT)
TTT is engaged in additive manufacturing activities in Australia. The company focuses on the development and commercialization of the Titomic Kinetic Fusion process, an additive manufacturing process that is used for the application of cold-gas dynamic spraying of titanium or titanium alloy particles onto a scaffold to produce a load-bearing structure. It provides metal powders for the printing industry; and rapid prototyping, finishing, and design and engineering services. The company was incorporated in 2014 and is based in Notting Hill, Australia, with a current market capitalization is $59.76 million, and a current price of $0.380 per share.
Financial & Operational Update – On 27th August 2021, the company announced it got $2.325 million in a grant from the Federal Government Modern Manufacturing Initiative as a part of a total eligible plan to create space vehicle manufacturing capability. Further on 20th August 2021, the company sold TKF1000 to a leading research organization TWI UK for $2.28 million (GBP 1.20 million). The group recently shared its preliminary final report for the year ending on 30th June 2021, stating the marginal decline in revenues by 1.1% to $1.98 million for the full-year FY21 ending on June 30, 2021 on a prior comparison period basis. The losses swelled up by 58.6% to $17.18 million, from loss of $10.83 milllion posted in the prior year. The cash balances declined to $7.95 million on the back of surge in expenses and impairment charges.
Technical Analysis: The stock showed an overall downtrend forming lower highs and lower lows and touched the multi-year low of $0.355. The relative strength index is at 39.923, which is heading towards an oversold zone. The 21 days simple moving average is hovering close to the stock price and placed above at $0.391 giving some more bearish signal to the stock price. The stock price is creeping down towards the multi-year lows; hence the support levels are plunged at $0.34. For the prices to resume the uptrend, a resistance of $0.445 needs to be taken off with strong volumes.
Declining revenues, accumulating losses and declining cash balances, accompanied with lower stock prices, gives the strong rationale towards refrain from investing unless the company shows some turnaround in its financials. Hence, we give an ‘Avoid’ rating at the closing price of $0.380, down by ~2.56%, as of 30th August 2021.
Daily Technical Chart – TTT
Source: REFINITIV
Kuniko Limited (ASX: KNI)
KNI is an Australian exploration company, acquires and explores base metal projects in Norway. The company primarily explores nickel, copper, cobalt, and gold deposits. The key projects are Undal-Nyberget, Vangrøfta, Romsås, Skuterud, and Feøy. The company was formerly known as Koppar Resources Europe Pty Ltd. The company was incorporated in 2017 and is based in Perth, Australia. The market capitalization stood at $108.48 million at $2.330 per share. Kuniko Limited is a subsidiary of Vulcan Energy Resources Limited.
Financial & Operational Updates – As per the exchange update on 26th August 2021, the company stated that it commenced exploration activities at Skuterud Cobalt and Vangrfta Copper project located in Norway for exploring copper mineralization underneath. The company had nil revenues and incurred a loss of $252,950 in six months ending December 2020. It had posted a decline in the payments to suppliers to $216 as of December 2020 as compared to $16,767 as of December 2019. The proceeds of the public offer significantly boosted the cash balance, reaching ~$7.45 million (on a pro forma basis) as of August 25, 2021 from $1,691 as of December 2020. The borrowings stood at $749,887, which are subject to conversion post successful issue of equity, making the company debt-free.
Technical Analysis- The stock is a recently listed entity on exchanges, and not having adequate data to conduct technical analysis.
Since the stock is recently listed and had nil revenue generation, and lacks adequate financial results declaration of few quarters along with the trading history of its stock price, hence, we give the stock the rating of ‘Avoid’ at the closing price of $2.330, up by ~14.22%, as of 30th August 2021.
Daily Technical Chart – KNI
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 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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