Creso Pharma Limited (ASX: CPH)

CPH was founded in 2015 which is involved in developing cannabis and therapeutic-grade nutraceuticals and products derived from hemp. It also cultivates and harvests cannabis through its subsidiary. Its market capitalization stood at AUD 168.91 million as of 15^th November 2021.

Financial and Operational Updates: As per the announcement on 15^th November 2021 it strengthened its IP Portfolio and completed the integration of Creso ImpACTIVE assets. After signing a non-binding LOI with Innuana AG Switzerland on 1^st November, CPH reported a total of ~AUD 2.56 million Swiss Revenue for the FY21 (till date), including a ~126% growth in 4QFY21 as ~AUD 0.82 million versus previous quarter (3QFY21). On 9^th November 2021, Dr Brian Walker MLC resigned from the Strategic Consultant position, who was recently appointed on 4^th November. On 8^th November 2021, Halucenenx Life Sciences Inc. received positive results from USP 61 and USP 62 (Phase II Trial). As per Quarterly Update on 30^th September 2021, a revenue of ~AUD 1.16 million reported in 3QFY21, witnessed a ~92% of increase from ~AUD 0.61 million Pcp (3QCY20).  Its sales receipts for 3QFY21 were reported as ~AUD 1.80 million and cash balance at the end of 30^th September 2021 was reported at ~AUD 11.86 million versus ~AUD 13.56 million at the end of 30^th June 2021 (1HFY21). CPH posted loss during 1HFY21 reaching to ~AUD 18.96 million as compared to ~AUD 17.41 million in PcP.

Technical Analysis: CPH stock prices are continuously consolidating in the range of AUD 0.102 to AUD 0.16 range from the past 5 months on the weekly chart. Moreover, the price is trading below its 50-period SMA, which may act as a crucial resistance zone in short term. The momentum oscillator RSI (14-period) is trading at ~50.78 level, indicating lack of strength in the prices.  An important support level for the stock is placed at AUD 0.12, while the key resistance is at AUD 0.15.

A ‘Watch’ stance is suggested after considering its substantial net losses reported for 1HFY21, the current indecisive nature of price levels. The stock was analysed as per the closing price of AUD 0.135 per share, down by ~3.572%, as of 15^th November 2021.

Weekly Technical Chart – CPH

Source: REFINITIV

NOTE: Creso Pharma Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any recommendation concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

Aus Tin Mining Limited (ASX: ANW)

ANW is a multi-commodity exploration firm mainly dealing in Tin, Coking Coal, and Cobalt and nickel. Its projects include Taronga Tin project, Ashford Coking Coal project (Ashford Project), The Granville (Tasmania) Tin Project, and Cobalt and Nickel (Queensland Projects). Its market capitalization stood at AUD 12.71 million as of 15^th November 2021.

Financial and Operational Updates: As per the announcement on 8^th November 2021, it entered into a Sale and Purchase Agreement (SPA) to sell its 20% owned subsidiary Taronga Tin Pty Ltd for AUD 34 million to First Tin Limited (a UK-based company). As per the Quarterly Update on 29^th October 2021, its sales receipts for 1QFY22 were reported as nil and cash balance at the end of 30^th September 2021 was reported at ~AUD 1.269 million versus ~AUD 1.75 million at the end of 30^th June 2021. As per the Statutory Report released on 28^th September 2021, revenue from operations were reported as nil in FY21 from ~AUD 0.069 million in FY20. However, the net losses after tax reduced to ~AUD 1.32 million for FY21 as against ~AUD 2.24 million in FY20. 

Technical Analysis: ANW’s prices trading in a long consolidation phase between AUD 0.001 to AUD 0.002, on a weekly chart. Prices are unable to cross its trend-following indicators 21-period SMA and 50-period SMA by upside. The momentum oscillator RSI (14-period) is trading in a mid-range at ~45.1340, showing indecision in the stock. The important for the support level stock is placed at AUD 0.005 and while resistance level is at AUD 0.0015.

It is prudent to suggest the scrip as A ‘Watch’ stance is suggested after considering its divestment in the operating assets and current sideways movement of its price. The stock was analysed as per the closing price of AUD 0.001 per share, as of 15^th November 2021.

Weekly Technical Chart – ANW

Source: REFINITIV

Argosy Minerals Limited (ASX: AGY)

Incorporated in 2010, AGY is involved in the development of its flagship Rincon Lithium Project and exploration of Tonopah Lithium Project. Its market capitalization stood at AUD 412.77 million as of 15^th November 2021.

Financial & Operational Updates – As per the recent update, the development of 2000tpa Lithium-Carbonate Production at Rincon Project is progressing as per the schedule (40% completion), along with the procurement of the plant and equipment. Its first commercial production is expected to be completed by mid-2022. As per the Half Yearly Report released on 10^th September 2021, the other income decreased from ~AUD 57.57k in 1HFY20 to ~AUD 54.45k in 1HFY21. It converted its Net losses after tax of ~AUD 1.38 million for 1HFY20 to Net Profits after Tax of ~AUD 86.15k in 1HFY21.  Cash balance at the end of 30^th September 2021 was reported as AUD 22.79 million (3QFY21), versus ~AUD 27.843 million at the end of 30^th June 2021 (2QFY21) – both excluding the cash at bank accounts of Puna Mining S.A.

Technical Analysis: AGY's price witnessed a robust rally from the low of AUD 0.085 to a recent high of AUD 0.365 made on November 11, 2021. Currently, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA which support a positive bias; however, the momentum oscillator RSI (14-period) is trading in an overbought zone at ~83.495 levels, indicating the possibility of a downside correction. The important support level for the stock is placed at AUD 0.260 while the resistance is at AUD 0.379 level.

On technical front, the scrip is trading at higher band and the RSI forming a negative divergence, therefore A ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.32 per share, down by ~3.031%, as of 15^th November 2021.

Weekly Technical Chart – AGY

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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