Byron Energy Limited (ASX: BYE)

Incorporated in 2005, BYE is an Australian company involved in oil and gas exploration, in the shallow areas and transition zone (offshore Louisiana) in the Gulf of Mexico, USA. As of 13^th October 2021, its market capitalization stood at AUD 150.84 million, at the stock price of AUD 0.145 per share.

Financial & Operational Updates – As per the Financial Report for FY21 release on 30^th September 2021, revenue from operations increased from ~USD 26.24 million in FY20 to ~USD 43.26 million in FY21. Total profit from continuing operations of ~USD 68.34k in FY20 rose to ~USD 5.85 million in FY21. Cash at the end of FY21 was reported at ~USD 4.14 million as of 30^th June 2021 versus ~USD 16.64 million in PcP. Prospective resources as at the end of 30^th June FY21 for oil was stated as ~33.3 Mmbbl and ~572.2 Bcf of gas. As per the announcement on 20^th September 2021, the operations at South Marsh Island 69 E2 Well (with a total depth of 8,157 feet) after casing and cementing has started with an aim of kick start the production in October-November 2021. No damage has been recorded due to hurricane Ida in August 2021 as the company suspended its drilling operations.

Technical Analysis: On the weekly chart, BYE stock price witnessed a breakout of the horizontal trendline resistance at AUD 0.145 level and has also crossed both the trend-following indicators 21-period and 50-period SMA by the upside, indicating a positive trend. The leading indicator RSI (14-period) is trading at ~57.608 level, indicating positive momentum. Now the important support and resistance levels for the stock are placed at AUD 0.130 and AUD 0.160, respectively.

With the recent progress in financial performance and improvement in profitability, BYE seems to be a promising scrip, and keeping the support and resistance level as crucial points, investors with a high-risk appetite might consider a ‘Speculative Buy’ position. The stock was analysed as per the closing price of AUD 0.145, as of 13^th October 2021. However, the risk levels are high depending on the commodity price fluctuations.

Weekly Technical Chart – BYE

Source: REFINITIV

Dubber Corporation Limited (ASX: DUB)

DUB was incorporated in 1999, offering Unified Call Recording (UCR), Voice Intelligence and Audio Asset Management in the cloud to the carriers in North America, Europe and Asia Pacific. The services provided by DUB were also used for compliance, business intelligence, sentiment analysis, and AI, among others. It holds a market capitalization of AUD 928.29 million as of 13^th October 2021, at the stock price of AUD 3.20 per share.

Financial & Operational Updates – On 20^th September 2021, it acquired world class AI technology Group Notiv for ~AUD 6.6 million, adding additional services, synergy revenue generation and additional customer base. On 3^rd September 2021, DUB was included in S&P/ASX 300, effective from 20^th of September 2021. As per the Preliminary Final Report, it had showed a ~143% CAGR increase in Annualised Recurring Revenue since 2018 with subscribers exceeding 420,000 in FY21. A ~97% Y-o-Y of increase was observed in Revenue and reported as ~AUD 23.3 million in FY21. It recorded total losses as ~AUD 30.68 million in FY21 versus ~AUD 18.00 million reported last year. Cash at the end of FY21 was reported as ~AUD 32.04 million as of 30^th June 2021 versus ~AUD 18.40million in PcP.

Technical Analysis: On the daily chart, DUB stock price witnessed a breakout of the rising trendline support at AUD 3.63 level and sustaining below the same. Moreover, the prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, indicating a negative momentum. However, the momentum oscillator RSI (14-period) is trading in near an oversold zone at (~36.46 level) and which might indicate the possibility of a rebound from the lower levels. An important support level for the stock, is placed at AUD 2.60 while the key resistance level is placed at AUD 3.41.

Due to widening of losses in FY21 and its current RSI levels it looks like a risky bet at this level, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing market price of AUD 3.20 per share, up by ~2.564%, as of 13^th October 2021.

Daily Technical Chart – DUB

Source: REFINITIV

YPB Group Limited (ASX: YPB)

YPB was incorporated in 2004. It offers sales, marketing and developing services of anti-counterfeiting, product authentication and consumer engagement solutions to brands owners globally. Its security services are used by Government, corporations and intellectual property owners. It holds a market capitalization of AUD 24.95 million as of 13^th October 2021, at the stock price of AUD 0.004 per share.

Financial & Operational Updates – On 12^th October 2021, it launched its new product named MultiSec Shield for authentication of government documents. After receiving of US patent from US Patent Office (USPO) for its smartphone’s anti-counterfeit MotifMicro1 (MM1) technology on 5^th of October 2021, YPB launched its first commercial trial in South-East Asia. The company’s first paid commercial trial of MM1 in Australia was secured on 8^th September 2021 with a leading ANZ packaging supplier OpalANZ through its Specialty Packaging Group Limited.  As per the Half Yearly Reports and Accounts released on 31^st August 2021, it showed a ~16.9% decrease in Y-o-Y Revenues and reported as ~AUD 0.29 million in 1HFY21 versus ~AUD 0.35 million in 1HFY20. It recorded total losses as ~AUD 1.79 million in 1HFY21 versus ~AUD 1.71 million reported last year. Cash at the end of 1HFY21 was reported as ~AUD 1.35 million as of 30^th June 2021 versus ~AUD 1.55 million as of December 31, 2020. In August 2021, a total sum of 1,193 shareholders participated in share sale facility, completed at a sale price of AUD 0.002 per share.

Technical Analysis: On the weekly chart, YPB stock prices are trading below the horizontal trendline resistance zone and facing the resistance of the same. However, prices are trading above 21-period SMA and 50-period, which may act as a crucial support zone at lower end. The momentum oscillator RSI (14-period) is trading at ~64.40 level. An important support level for the stock, is placed at AUD 0.003 while the key resistance level is placed at AUD 0.006.

Considering the drop in 1HFY21 performance and its current RSI levels we suggest a ‘Watch’ stance at current price. The stock was analyzed as per the closing market price of AUD 0.004 per share, down by ~20.000%, as of 13^th October 2021.

Weekly Technical Chart – YPB

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 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.