MoneyMe Limited (ASX: MME)

MME is a tech-based financial services company, providing an online platform to consumers and businesses to get credit. Its main segments include Loans and Credit services. Its market capitalization stood at AUD 349.73 million as of 8^th November 2021.

Financial & Operational Updates – As per its Quarterly 1QFY22 Results released on 18^th October 2021, revenue was up by ~92% on PcP basis and recorded as ~AUD 23 million in 1QFY22 versus ~AUD 12 million in 1QFY21. It reported a sum of 1 billion customer receivable originations since 2013 (inception) and originations witnessed an increase of ~283% from ~AUD 45 million in 1QFY21 (PcP) to AUD 173 million in 1QFY22. On 13^th October 2021, Emery Pty Ltd reduced its substantial interest from ~28.09% to ~27.01%. As per the FY21 Annual Report released on 30^th August 2021, the net profit of ~AUD 1.29 million in FY20 were converted into net losses ~AUD 7.92 million in FY21. Cash on hand decreased and reported as ~AUD 26.16 million at the end of 30^th June FY21 versus ~AUD 35.37 million at the end of 30^th June FY20.

Technical Analysis: On the weekly chart, MME prices have been trading sideways since June 2021 and sustaining below the trend-following indicator 21-period SMA. The momentum oscillator RSI (14-period) is consolidating around mid-point at ~53.397 levels which indicates directionless movement. The crucial support and resistance levels are AUD 1.840 and AUD 2.200, respectively.

Considering its prices sideways movement, getting the scrip at this time might not be prudent at the moment, therefore a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 2.030 per share, down by ~0.491%, as of 8^th November 2021.

Weekly Technical Chart – MME

Source: REFINITIV

Sports Entertainment Group Limited (ASX: SEG)

Incorporated in 1987, SEG provides social media content and entertainment business services through radio, television, print, online, events and in-stadium. Its market capitalization stood at AUD 60.08 million as of 8^th November 2021.

Financial & Operational Updates – On 19^th October 2021, its 513,762 shares were removed from the Voluntary Escrow account. On 4^th October 2021, Ms. Jodie Simm was appointed as an Executive Director. As per the FY21 financial results announced on 30^th August 2021, the revenue increased by ~10.4% Y-o-Y from ~AUD 66.8 million in FY20 to ~AUD 73.7 million in FY21. Operating expenses decreased by ~5% on Pcp basis, resulting in conversion of net losses of ~AUD 4.36 million in FY20 to net profits of ~AUD 2.04 million in FY21. Cash on hand at the end of 30^th June FY21 was reported as ~AUD 5.32 million versus ~AUD 7.65 million at the end of 30^th June FY20.

Technical Analysis: On the weekly chart, SEG prices have been trading in a consolidation phase for the past two years and struggling to surpass the trend-following indicators 21-period SMA and 50-period SMA. The momentum oscillator RSI (14-period) is consolidating around mid-point at ~45.802 levels, which indicates a directionless movement for the stock. The crucial support and resistance levels are AUD 0.22 and AUD 0.29, respectively.

Considering reduced cash balance, current directionless movement in the stock,  we suggest a cautious stance on the stock, therefore a ‘Watch’ rating is given. The stock was analysed as per the closing price of AUD 0.245 per share, down by ~5.770%, as of 8^th November 2021.

Weekly Technical Chart – SEG

Source: REFINITIV

Conico Limited (ASX: CNJ)

Incorporated in 2006, it is engaged in exploration and development of minerals. CNJ conducts its operations in Peru and Canada. Its projects include Ryberg, Mestersvig, Sortekap and Mount Thirsty, covering Greenland and Iceland. Its market capitalization stood at AUD 38.0 million as of 8^th November 2021.

Financial & Operational Updates – On 2^nd November 2021, its 108,038,019 fully paid ordinary shares were removed from Voluntary Escrow. As per the Quarterly Report for Q1FY22 published on 29^th October 2021, its drilling program at Ryberg Project at the Miki, Sortekap and Cascata Prospects got completed. A placement of 67 million shares for AUD 4.02 million was completed and the field season is likely to get started in April/May 2022 for Mestersvig Project. There were no receipts from customers for the 1QFY22, cash and cash equivalents reported as ~AUD 4.74 million as of 30^th September 2021 versus ~AUD 3.91 million as of 30^th June 2021 (4QFY21). As per its 2021 Annual Report, its other income was reported as ~AUD 1.13k in FY21 versus ~AUD 22.96k in FY20. Its net losses increased and reported as ~AUD 0.99 million in FY21 from ~AUD 0.34 million in FY20.

Technical Analysis: CNJ stock prices are trading in a bearish trend and facing the selling pressure from the higher levels on the weekly chart. Moreover, the price is trading below its 21-period SMA, which may act as a crucial resistance zone in short term. The momentum oscillator RSI (14-period) is trading at ~44.06 level, indicating lack of strength in the prices.  An important support level for the stock is placed at AUD 0.033, while the key resistance is at AUD 0.040.

Considering higher net losses, reduced other income, prices trading below 21-period SMA, we suggest a ‘Watch’ stance on the stock. The stock was analysed as per the closing price of AUD 0.036 per share, down by ~5.264%, as of 8^th November 2021.

Weekly Technical Chart – CNJ

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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