Li-S Energy Limited (ASX: LIS)

LIS was incorporated on 12^th July 2019, is an Australian company developing a battery technique - lithium-sulphur (Li-S) battery using boron nitride nano-tubes (BNNT). Besides, it is also focussed on commercialisation to markets such as EV (Electric Vehicles), and e-mobility, consumer electronics and Internet of things devices, aviation and drone technology, and law enforcement and defense. Its market capitalization as of 6^th October 2021 stood at $1.27 billion and the share price stood at $2.190 per share.

Financial & Operational Updates – On 1^st October 2021, Deakin University and PPK Aust. Pty Limited announced to be substantial holders with 13.02% and 50.12% voting interest, respectively. As per the announcement on 28^th September 2021, LIS commenced its trading journey on ASX. As per the Annual Report released on 24^th September 2021, company still hasn’t gone for commercialisation of its batteries, the group reported an increase in Total Comprehensive Loss, stated as ~$1.68 million for FY21, as compared to loss of ~$35k in FY20. Cash at the end of FY21 was reported as ~$18.60 million as of 30^th June 2021 versus ~$3.03 million in PcP. LIS raised a sum of $34 million through its IPO in April 2021, proceeds from which will be used for further research and developments, and funding of the industrial scale-up of the new-technology.

Technical Analysis: As stated in the above-mentioned announcement of its recent ASX listing on 28^th September 2021, due to lack of ample candlestick data from the given date, technical analysis is not applicable.

Besides being a novice to ASX, Li-S Energy is still in its research phase and has a long way to go for commercialisation of its batteries. The risk attached with the scrip seems to be on a higher side and can be put in a category of highly volatile stocks, therefore, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of $2.19 per share, up by ~10.050%, as of 6^th October 2021.

Daily Technical Chart – LIS

Source: REFINITIV

Redcape Hotel Group (ASX: RDC)

Managed by MA Hotel Management, RDC Hotel Group (2013) holds a portfolio of 36 community-focused venues, 26 bottle shops, 3 accommodation venues, and The Australian Brewery across East Coast in Australia. As on 6^th October 2021, the market capitalization of the company stood at $604.65 million, and trading at $1.095 per share.

According to the release of FY21 results, revenue from ordinary activities was increased by ~29.3% Y-o-Y, from ~$259.29 million in FY20 to ~$335.31 million in FY21. On the other hand, Statutory Net Profit after Tax increased by ~153.6% and was stated as ~$28.47 million in FY21 versus ~$11.23 million in FY20. Despite its strong financial performance, RDC has always traded at discount, since its IPO.

As per the general meeting held on 10^th September 2021, Independent Board Committee along with RDC’s Responsible Entity (the Board) have passed a proposal to delist the scrip from ASX with effect from 2^nd November 2021. Depending on which, the shareholders are left with two options:

• While retaining the existing shares, shareholders can also increase their holdings under the Right Issue at $1.15 per security in a ratio of 1:4.8 fully underwritten by MA Financial Group, which can further be applied for additional securities till the cap of 2.0x shareholders’ entitlement. In this case, RDC will provide quarterly liquidity on 30^th June, 30^th September and 31^st December 2022 at 7.5%, 5.0% and 2.5% discount to Directors NAV, respectively to its shareholders.
• Exit before the de-listing, at a price of $1.15 per security by applying for Buy Back, which is placed at 22.3% premium to the last close price prior to the announcement of De-listing.

The stock was analysed as per the closing price of $1.095 per share, as of 6th October 2021.

Daily Technical Chart – RDC

Source: REFINITIV

Impact Minerals Limited (ASX: IPT)

Incorporated in 2006, IPT is an Australian company engaged in deposits exploration, mainly nickel, gold, copper and platinum group elements. Its major projects are: Broken Hill, Commonwealth, Blackridge, Arkun and Doonia Projects. Its market capitalization stood at $30.35 million as of 6^th October 2021, at the stock price of $0.0155 per share.

Financial & Operational Updates – As per the Australian Nickel Conference Presentation, the cash as of 6^th October 2021 was reported as ~$2.3 million. As per the announcement on 21^st September 2021, 11 Targets for Ni-Cu-PGM and 11 Targets for LCT with soil anomalies, have been found at Arkun Project, WA. As per the recent Full Year Statutory Accounts released on 16^th September 2021, revenue from operations decreased from ~$20.70k in FY20 to ~$15.63k in FY21. On the other hand, Total Comprehensive Loss of ~$1.68 million in FY20 has increased to ~$4.71 million in FY21.

Technical Analysis: IPT's prices started to fall after making a high of $0.027 in March 2021 and recently started to move upside. On the higher side, $0.0175 acts as a crucial resistance level for the stock, and any sustainability above the same might extend buying in the stock. On the daily chart, the CMP is above the trend following indicators 21-period SMA and 50-period SMA and the momentum indicator RSI (14-period) is trading above mid-point at ~56.941 level.

Considering drop in revenues and widening losses in FY21 and its current RSI levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing market price of $0.0155 per share, up by ~3.333% as of 6^th October 2021.

Daily Technical Chart – IPT

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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