Field Solutions Holdings Limited (ASX: FSG)

Found in 2004, FSG is involved in developing and providing telecommunication products and services, to improve connectivity in rural and regional area. It caters local government, businesses and residents. Its market capitalization stood at AUD 136.20 million as of 25th November 2021.

Financial and Operational Updates: On 29^th October 2021, FSG announced the acquisition of TasmaNet for ~AUD 12 million (debt-free & cash-free basis) and earn-out consideration of ~AUD 2 million. TasmaNet is projecting FY22 revenue of ~AUD 19 million. The combined business is expected to generate EBITDA in the range of ~AUD 4.5 – 5.5 million in FY22. On 5^th October 2021, Microequities Asset Management Pty Ltd became substantial shareholder by having voting power of ~6.37%. In the month of September, it completed its capital raise of AUD 20 million, which will be utilized to fund organic growth strategy. FSG will commence delivery of 16 networks in Australia, and also intended to double its revenue and EBITDA for FY22. As per the Annual Year Report released on 19^th August 2021, its total revenue increased Y-o-Y and was reported as ~AUD 18.85 million in FY21 versus ~AUD 10.62 million in FY20. It converted its net losses after taxes of ~AUD 0.47 million in FY20 to the net profits after tax of ~AUD 2.13 million in FY21. The cash balance at the end of 30^th June 2021 was reported at ~AUD 0.18 million versus ~AUD 0.43 million at the end of 30^th June 2020.

Technical Analysis: On the weekly chart, FSG’s prices are trading above a rising trendline and getting support from the trend-following indicators 21-period SMA and 50-period SMA, indicating a positive stance. The momentum oscillator RSI (14-period) is trading in positive territory at ~59.386 level. The crucial support level for the stock is placed at AUD 0.180, while the key resistance is at AUD 0.250.

With a view of expanding in Australia in FY22, it has transformed its negative earnings into positive figure. On technical front its expected short-term bullish trend suggests the investors with a high-risk appetite a ‘Speculative Buy’ stance along with incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current market price of AUD 0.200 per share, as of 25^th November 2021, 11:59 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are extremely high in view of the efficiency and effectiveness of the expansion plans for future.

Weekly Technical Chart – FSG

Source: REFINITIV

AVZ Minerals Ltd (ASX: AVZ)

Incorporated in 2007, it is a mineral exploration and development company mainly focussing on Lithium and Tin Projects - Manono Lithium and Tin Project. As on 25^th November 2021, the market capitalization of the company stood at AUD 2.17 billion.

Financial & Operational Updates – On 24^th November 2021, it reported a cash balance of ~AUD 7.00 million at the end of 15^th November 2021 with no debt. As per the Quarterly Update on 29^th October 2021, to develop its Manono Lithium and Tin Project, Suzhou CATH Energy Technologies (CATH) signed as a cornerstone investor. CATH will pay ~USD 240 million as against a payment of 24% equity, while the whole project’s transaction cost totalled to ~USD 400 million depending on the final verification of project capital. Its sales receipts for 1QFY22 were reported as nil and closed the quarter with a cash balance of ~AUD 10.03 million at the end of 30^th September 2021. As per the Annual Year Report released on 29^th October 2021, other income was reported as ~AUD 0.04 million in FY21 versus ~AUD 0.22 million in FY20. It reported substantial increase in its comprehensive loss and reported as ~AUD 13.11 million in FY21 versus ~AUD 4.19 million for FY20.

Technical Analysis: AVZ stock price witnessed a robust rally from the low of AUD 0.315 to a 52-week high of AUD 0.735 tested on November 23, 2021. Currently, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, acting as crucial support zone. Moreover, the momentum oscillator RSI (14-period) is trading in an overbought zone at (~83.682 level) and formed negative divergence on the weekly chart, which indicates the possibility of a downside correction from the higher levels. An immediate support level for the stock is at AUD 0.605 while immediate resistance level is AUD 0.720.

After considering its current higher trading levels, RSI negative divergence and substantial losses for FY21, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.660 per share, down by ~2.223% as of 25^th November 2021.

Weekly Technical Chart – AVZ

Source: REFINITIV

Prescient Therapeutics Limited (ASX: PTX)

With the use of CAR-T and targeted therapy approaches, PTX (clinical-stage oncology) treats a range of cancer. It currently holds market capitalization at AUD 141.81 million as of 25^th November 2021.

Financial and Operational Updates: On 19^th November 2021, it appointed Dr Marco Davila (physician-scientist) and Prof. Andrew Tsourkas (bioengineering expert) to its Scientific Advisory Board (SAB). As per the Quarterly Activities Report on 28^th October 2021, its PTX-100 Phase 1b trial presented positive safety results, following with an expansion in T cell Lymphoma study. It reported its cash receipts from customers as nil for 1QFY22 and closed the September quarter with a cash balance of ~AUD 14.88 million at the end of 30^th September 2021 versus ~AUD 16.09 million at the end of 30^th June 2021. As per the Appendix 4E and 2021 Annual Report, total revenue was down by ~5.8% Y-o-Y and reported as ~AUD 66.28k. Its net losses after taxes reported as ~AUD 4.15 million in FY21 versus loss of ~AUD 3.32 million in FY20.

Technical Analysis: PTX’s prices recently broke an upward sloping trend line by the downside, indicating the possibility of a downside movement. The momentum oscillator RSI (14-period) is trading around mid-point at ~51.036 levels and forming a negative divergence with the price action, supporting a negative bias. The prices are sustaining below the trend-following indicator 21-period SMA and indicate a downward trend; however, the 50-period SMA may act as the resistance level for the stock. 

The possible downward movement in near future and subdued profitability suggests the scrip as A ‘Watch’. The stock was analysed as per the closing price of AUD 0.220 per share, as of 25^th November 2021.

Weekly Technical Chart – PTX

Source: REFINITIV

NOTE: Prescient Therapeutics 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.

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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