Bard1 Life Sciences Limited (ASX: BD1)

BD1 is an Australian company involved in research, development and commercialization of non-invasive diagnostic products used to detect cancer. The company was incorporated in 1983 and its market capitalization as of 24^thSeptember 2021 stood at $103.88 million and the share price stood at $1.15 per share.

Financial & Operational Updates – As per the Preliminary Financial Report released on 31^st August 2021, revenue from ordinary operations was up by ~100% Y-o-Y and reported as ~$0.47 million in FY21 versus nil revenues in FY20. The group reported a Total Comprehensive Loss of ~$12.33 million, an increase of ~278% Y-o-Y as compared to loss of ~$3.26 million in FY20. Cash at the end of FY21 was reported as ~$4.99 million as of 30^th June 2021 versus ~$7.32 million in PcP. The above-mentioned revenue, strengthening of business and cost-savings amounting over ~$1.1 million were observed after the completion of strategic acquisition of Sienna Cancer Diagnostics in July 2020.

Technical Analysis: On a daily chart, BD1 prices are trading in a primary downtrend since March after making a 52-week high of $5.60 in February 2021. RSI (14-period) is moving near an oversold level at ~30.722 levels, that indicates prices are trading in a weak momentum. The prices are also hovering below 21-period SMA and 50-period SMA which indicates prices are trading in a negative territory lowering chances of upside recovery in prices. Immediate support and resistance levels are $1.06 and $1.32 respectively.

Even though BD1 generated positive increase in revenue and witnessed operating synergies, it incurred losses for FY21. On the technical front, weak momentum has been observed, thus suggesting a ‘Watch’ stance. The stock was analyzed as per the closing price of $1.15 per share, up by ~1.769%, as of 24^th September 2021.

Daily Technical Chart – BD1

Source: REFINITIV

Aura Energy Limited (ASX: AEE)

Incorporated in 2005, AEE is a mineral exploration and development company mainly having a focus on low capex and high-grade uranium projects, with projects primarily in Sweden and Mauritania. Its market capitalization stood at $103.11 million and trading at $0.255 as of September 24, 2021.

Financial & Operational Updates – AEE resumed its trading on ASX effective 23^rd September 2021 after it was on halt since May 18, 2020. As updated on 22^nd September 2021, the Tiris Uranium Project resources upgraded by 10% or 5.0 million pounds of U₃O₈, totalling to a sum of 56 million pounds. A gravity survey at Tasiast South Gold Tenements was held along with, a first successful drillhole from a depth of 35m with a flow rate of ~17,000 ltrs. per hour was encountered in Tiris Uranium Project in the month of September 2021. The company reported cash of 3.21 million at the end of 30^th June 2021.

Technical Analysis: As per the announcement on 18^th May 2020, AEE was put on a trading halt on ASX, awaiting a “purchase” announcement. On 23^rd September 2021, after almost 16 months it resumed its trading at ASX. However, due to lack of ample candlestick data between the two mentioned dates, technical analysis is not applicable.

After considering the company’s updates on the Tirish Uranium Project & Tasiast South Gold Tenements and its trading halt, 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 market price of $0.255 per share, down by ~1.924%, as of 24th September 2021.

Daily Technical Chart – AEE

Source: REFINITIV

Cann Global Limited (ASX: CGB)

Incorporated in 2007, CGB is an Australian company engaged in multiple businesses including hemp cultivation, production and distribution of beauty products and plant-based food items. Besides, it has a mining division holding bauxite assets in South Johnstone project, Queensland. Its market capitalization stood at $22.90 million as of 24^th September 2021, at the stock price of $0.004 per share.

Financial & Operational Updates – As per the Preliminary Final Report released on 31^st August 2021, revenue was down by ~16% Y-o-Y and reported as $1.48 million in FY21. The decrease in revenue is due to decrease in export sales to Vietnam and lower revenue from Cann Global Thailand. Food products division being the major contributor to the revenue, contributed a total of $1.42 million for the FY21. CGB reported a Total Loss of $4.77 million, a decrease of ~41% Y-o-Y as compared to loss of $8.05 million reported in FY20. Cash at the end of FY21 was reported as $10.57 million versus $7.41 million in PcP. Research expenses in FY21 were significantly reduced to $0.10 million from $2.13 million in FY20 but is expected to rise in FY22 owing to clinical trial of cannabis on Multiple Sclerosis.

Technical Analysis: CGB’s price has been into a major downtrend since 2018 and have been consolidating in a sideways range between $0.004 to $0.006 from May 2021. The CMP is placed at the current level of 21-period SMA and still struggling to cross the 50-period SMA, further indicates indecision in the stock. The RSI (14-period) is hovering in negative territory at 47.675 level; however, forming a positive divergence with the price action. Immediate support levels are $0.03 and $0.02 while immediate resistance levels are $0.005 and $0.006.

The company reported net losses and expected to incur R&D expenses in FY22. On the technical front, it’s support, and resistance play a very important role, and investing in this stock at current levels must be undertaken with a cautious approach due to volatile nature, hence it's suggested to ‘Watch’ and re-evaluate the stock near the support and resistance levels. The stock was analyzed as per the closing market price of $0.004 per share, as of 24^th September 2021.

Daily Technical Chart – CGB

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.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.