Keytone Dairy Corporation Limited (ASX: KTD)

Incorporated in 2017, KTD is engaged in manufacturing and exporting of dairy products like formulated powdered products, ready-to-drink protein drinks and snacking. It operates in Australia and NZ. Its market capitalization stood at AUD 32.89 million as of 1st November 2021.

Financial & Operational Updates – As per the Quarterly Report FY22 published on 11^th October 2021, the company recorded highest record quarterly sales of AUD 15 million in 2QFY22, increasing ~10% YoY from 2QFY21. It also witnessed the highest record sale of AUD 5.7 million for the month of September 2021 owing to commencement of Protein Bar line. Out of total order of AUD 2 million for protein bar line, KTD is likely to deliver about 75% of it by December 2021. Staff costs and capital expenditure increased in 2QFY22 because of addition of new protein bar line and its production. The company’s cash receipts increased to ~AUD 13.27 million for 2QFY22 versus ~AUD 12.87 million for 1QFY22. Cash and cash equivalents status at the end of 30^th September 2021 was ~AUD 3.7 million (excluding protein bar proceeds) with undrawn debt facilities as ~AUD 6.30 million.

Technical Analysis: On a weekly chart, KTD's price broke the falling wedge pattern by upside on a weekly chart. Currently, the prices are consolidating in a range and are trying to reverse from its support level placed as 52-week low at ~AUD 0.110. Moreover, the momentum oscillator RSI (14-period) at ~40.250 level is forming a positive divergence, which might indicate the possibility of an expected uptrend movement for short-term. The important for the support levels stock is placed at AUD 0.094 while resistance level is at AUD 0.165.

With the recording of highest performances on record and consideration of its current levels, the investors with a high-risk appetite can consider it as a ‘Speculative Buy’ stance, keeping the support and resistance levels as crucial points. The stock was analysed as per the closing price of AUD 0.120 per share, as of 1^st November. However, the risk levels are high considering the sustenance and efficiency of its protein bar.

Weekly Technical Chart – KTD

Source: REFINITIV

Ausgold Limited (ASX: AUC)

AUC was incorporated in 2007, is involved in exploration and development company of gold and other precious metals. Its projects include Katanning Gold, Woodanilling, Lake Magenta Gold, Doolgunna Station, Yamarna, Cracow Projects.  Its market capitalization stood at AUD 72.92 million as of 1^st November 2021.

Financial and Operational Updates: As per the announcement on 1^st November 2021, it was awarded a grant of ~AUD 0.15 million by Western Australian Government under the Exploration Incentive Scheme (EIS). As per the quarterly updates released on 28^th October 2021, extensive zones of high-grade gold mineralisation were found through RC drilling (10,281m) at the Katanning South Zone. Diamond drilling campaign of 1,200m will further support metallurgical and geotechnical studies of Central and Southern Zones. As per the Annual Report released on 30^th September 2021, it had recorded net loss after tax of ~AUD 3.51 million for FY21 as against ~AUD 1.82 million in FY20. Cash at the end of 30^th September 2021 was reported at ~AUD 5.80 million versus ~AUD 7.45 million at the end of 30^th June 2021.

Technical Analysis: Technical Analysis: AUC prices are trading in the lower highs and lower lows pattern, indicating a downtrend for the stock. On the weekly chart, the momentum oscillator RSI (14-period) is hovering around the mid-point and currently trading at ~52.00 levels. The prices are well placed above the trend-following indicator 21-period SMA that supports an uptrend; however, trading below 50-period SMA and may act as a resistance level. An important support level for the stock is placed at AUD 0.039, while the key resistance is at AUD 0.049.

A ‘Watch’ stance is suggested after considering the financial performance and the directionless movement of the scrip. The stock was analysed as per the closing price of AUD 0.44 per share, down by ~4.348%, as of 1^st November 2021.

Weekly Technical Chart – AUC

Source: REFINITIV

Beam Communications Holdings Limited (ASX: BCC)

Incorporated in 1985, BCC is involved in designing, manufacturing, sales, and distribution of satellite communication equipment, accessories and data airtime services. Its market capitalization stood at AUD 29.64 million as of 1^st November 2021.

Financial and Operational Updates: As per the Quarterly Update released on 26^th October 2021, cash receipts of ~AUD 6.15 million and an increase of ~38% Q-o-Q in cash & cash equivalents were reported as ~AUD 5.09 million for the period ending 30^th September 1QFY22. The subscribers in AUS and NZ increased by ~28% to 1,640 as of 30^th September 2021, in three months. A hike of ~47% and 33% increase in sales of its SatPhone and beam-branded equipment was recorded in 1QFY22 versus PcP. On 25^th October 2021, it received an additional order of 12k ZOLEO devices from its joint venture entity, to be delivered in FY22 and FY23. As per the Annual Report for FY21, the total revenue was reported as ~AUD 18.49 million for FY21 as against ~AUD 14.92 million in FY20. Its Net Losses after Income Tax of ~AUD 1.62 million in FY20 were converted to Net Profits of ~AUD 0.50 million in FY21.

Technical Analysis: On a weekly chart, BCC prices are trading in a rising channel pattern and currently prices are hovering around the upper band of the pattern. The momentum oscillator RSI (14-period) is trading in an overbought zone at ~72.164 level, which indicate the possibility of a downside correction from the higher levels. However, prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as a support levels. The crucial support and resistance levels are AUD 0.330 and AUD 0.410, respectively.

Due to its current prices and higher RSI levels a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.39 per share, down by ~1.266% as of 1^st November 2021.

Weekly Technical Chart – BCC

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.

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