Dubber Corporation Limited (ASX: DUB)

Incorporated in 1999, DUB offers Voice Intelligence, Unified Call Recording (UCR) and Audio Asset Management in the cloud to the carriers in North America, Europe and Asia Pacific. Its services are also used for compliance, business intelligence, sentiment analysis, and AI. It holds a market capitalization of AUD 1.01 billion as of 2^nd December 2021.

Financial & Operational Updates – On 2^nd December 2021, it signed a partnership agreement with BT to provide services related to recording and conversational intelligence solution for BT Meetings Suite. The earn-out component of acquisition of Speik which was supposed to be delivered in mid-2022, has been accelerated at a discount of 7% on the original consideration and is likely to occur within seven days. As per the Annual Report released on 1^st November 2021, a ~111% Y-o-Y of increase was observed in Operating Revenue and reported as ~AUD 20.34 million in FY21 versus ~AUD 9.65 million in FY20. It recorded substantial increase in total losses for FY21 as ~AUD 31.69 million versus ~AUD 18.00 million reported last year. This was due to spike to salaries and related expenses reaching ~AUD 22.15 million. Cash at the end of FY21 was reported as ~AUD 32.04 million as of 30^th June 2021 versus ~AUD 18.41 million in PcP.

Technical Analysis: DUB stock prices are trading below the falling trend line resistance zone at AUD 3.84 and facing the resistance of the same. Moreover, prices are trading below 21-period SMA which may act as a crucial resistance zone for the stock. The momentum oscillator RSI (14-period) is trading at (~50.91 level), which indicates the lack of strength in the prices. An important support level for the stock, is placed at AUD 3.03 while the key resistance level is placed at AUD 3.70.

After considering its huge losses in FY21, and on technical front considering its lack in strength in RSI levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing market price of AUD 3.30 per share, down by ~2.655%, as of 2^nd December 2021.

Weekly Technical Chart – DUB

Source: REFINITIV

Linius Technologies Limited (ASX: LNU)

LNU is involved in the technology business, providing services like development of technology products, software, and the commercialization and licensing of computer software - the Linius Video Virtualization Engine. It caters various sectors like Sports, Business, Education, Blockchain, and Video Services. It was incorporated in 2011, holds market capitalization at AUD 33.89 million as of 2^nd December 2021.

Financial and Operational Updates: As per the Quarterly Report released on 29^th October 2021, it signed its first commercial deal with the University of Newcastle for the launch of its Education Whizzard Product and its Sports Solution Product. With NBL contract, the company started to realize recurring revenues. Its sales receipts for 1QFY22 were reported as AUD 39k and closed the quarter with a cash balance of ~AUD 2.93 million at the end of 30^th September 2021 versus ~AUD 1.59 million at the end of 30^th June 2021. On 25^th October 2021, it appointed James Brennan and Clive Malcher as CEO and CTO, respectively. As per its Annual Report for FY21, it reported an increase of 64% increase in revenue from ordinary activities reaching at ~AUD 0.11 million in FY21. On the other hand, it had a decrease of ~21.6% in its net losses from ~AUD 7.82 million in FY20 to ~AUD 6.13 million in FY21.

Technical Analysis: On the weekly chart, LNU stock price witnessed a breakout of the rising trendline support at AUD 0.022 level and sustaining below the breakout level. Moreover, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as a resistance level for the stock. The momentum oscillator RSI (14-period) is at ~40.67 level. The crucial support level for the stock is placed at AUD 0.018, while the key resistance is at AUD 0.022.

A ‘Watch’ stance is suggested, after considering its current price, RSI levels and continues losses. The stock was analyzed as per the closing market price of AUD 0.020 per share, as of 2^nd December 2021.

Weekly Technical Chart – LNU

Source: REFINITIV

Crowd Media Holdings Limited (ASX: CM8)

An Artificial Intelligence (AI) company, CM8 deals in Direct-to-Customers (D2C) segment and provides sale of information, entertainment and content and utility services. It covers segments like Subscription and Crowd Direct to mobiles and tablets. Its market capitalization stood at AUD 26.04 million as of 2^nd December 2021.

Financial and Operational Updates: As per the recent investor presentation, CM8 to release proof of concept from PangeaMed wherein which it had formed a partnership during the September 2021 quarter. As per the Quarterly Report, its sales receipts for 1QFY22 were reported as AUD 1.53 million and closed its quarter with a cash balance of ~AUD 2.33 million at the end of 30^th September 2021 versus ~AUD 3.14 million at the end of 30^th June 2021. As per its Annual Report for FY21, it reported a decrease of ~33% in Revenue from ordinary activities reaching to ~AUD 11.06 million in FY21. On the other hand, it had booked a substantial increase of ~225.7% in its Net Losses from ~AUD 1.91 million in FY20 to ~AUD 6.24 million in FY21.

Technical Analysis: On the weekly chart, CM8’s prices witnessed significant gain in past three months. Stock prices are now getting resistance of the downward sloping trend line. The momentum oscillator RSI (14-period) is at (~60.455), indicates a gain in momentum. The crucial support level for the stock is placed at AUD 0.033, while the key resistance is at AUD 0.043.

Due to widening of losses in FY21 and its current indecisiveness in the prices, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing market price of AUD 0.039 per share, down by ~7.143%, as of 2^nd December 2021.

Weekly Technical Chart – CM8

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 represents the Trendline.

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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