BCI Minerals Limited (ASX: BCI)

BCI is engaged in the exploration and development of mineral assets in Australia. The company explores for salt, iron ore, and sulphate of potash deposits. It owns a 100% interest in the Mardie Salt and Potash Project located in the West Pilbara coast. Another key project is the Iron Valley mine located in Central Pilbara. The company was incorporated in 2006 and is based in West Perth, Australia. The current market capitalization is $284.79 million, and the current price is $0.480 per share.

Financial & Operational Updates – as per the exchange announcement of 2^nd September 2021, the company stated that its northern embankment trial is almost about to get completed and the construction of its southern trial pond is starting, and the contract has been given for the main seawater pump structure. On 20^th August 2021, the company released its earnings report for FY21, where the net profit after tax increased tremendously to $22.0 million in FY21 as compared to $0.4 million in FY20. The annual Iron Valley EBITDA increased to $69.5 million in FY21 from the $23.0 million in FY20. The company has no debts on its books and the cash balances stood at $79.4 million as of 30 June 2021.

Technical Analysis: The stock moved gradually with some dips at various instances and finally printed the recent highs of $0.615 ad cooled off from there and entered a slight downtrend as of now. The relative strength index is at 46.925, which is in the middle zone, implying a lack of linear price movement from current levels. The 21 days simple moving average is hovering close to the stock price and placed above $0.482, indicating bearing trend for the prices from current levels. Since the stock is less volatile, hence the support is placed near the current prices around $0.405 and similarly the resistance is placed at $0.575 levels.

Though the revenues have increased, profits and cash flows have improved, but the stock prices have seen an uptrend and trading near the recent highs. Hence, it's suggested to ‘wait and watch’ till the prices correct near the support level, where the investor can review. The recommendation was made at the closing price of $0.48, up by ~1.052%, as of 7^th September 2021.

Daily Technical Chart – BCI

Source: REFINITIV

Pan Asia Metals Limited (ASX: PAM)

PAM is a speciality metal explorer and developer in Southeast Asia. The company owns two tungsten projects and two lithium projects. Its key projects are the Khao Soon tungsten, Reung Kiet lithium, and Bang Now lithium projects located in Southern Thailand; and the Minter tungsten project located in Australia. The company was incorporated in 2017 and is based in Bangkok, Thailand. The current market capitalization is $71.52 million, and the current price is $0.680 per share.

Financial & Operational Highlights – On 2^nd September 2021, the company announced positive updates on its six more holes drilled at the Reung Kiet project for the lithium mineralization in that area. To further support the exploration activities and fund other projects, the company raised $8 million through private placement and SPP methods successfully on 6^th September 2021. On 27^th July 2021, the company announced its Quarterly results ended on 30 June 2021, stating the company did not receive any cash from its customer for the past 2 quarters ending on 30^th June 2021. The cash balances were reduced to the US$1.25 million as of 30^th June 2021 as compared to $1.8 million as of 31 March 2021.

Technical Analysis- The stock witnessed a sudden spike from $0.155 which took the prices towards the highs of $0.805 and currently closed nearby those levels. The relative strength index is at 94.062 which is in the overbought zone and can witness correction any time soon which could be minor to significant, depending upon the intensity of its reversal. The 21 days simple moving average is placed below the stock price of $0.234, implying a bullish trend to the stock prices, considering the lagging behaviour of the Moving Averaging. Since the prices have spiked, the support is coming in a range between $0.455 and $0.325. The stock is at the lifetime high, hence plotting the resistance on the chart is not feasible.

Missing cash receipts from its customers, volatile commodity prices and highly volatile stock prices, devoid the rationale of investing at these levels. Unless the financial improves and the prices cooled down and technical points some buying indication till then we give the stock the rating of ‘Avoid’ at the closing price of $0.680, up by ~20.353%, as of 7^th September 2021.

Daily Technical Chart – PAM

Source: REFINITIV

CFOAM Limited (ASX: CFO)

CFO is an Australia-based company that provides a range of carbon products. The principal activity of the Company is the commercialization of its CFOAM business. CFOAM products are inorganic carbon material that is manufactured from coal, pitch or lignin feedstock. Its CFOAM carbon foam products are designed to meet the demand for engineering materials in the industrial, aerospace, military and commercial product markets. The current market capitalization is $8.80 million, and the current price is $0.014 per share.

Financial & Operational Highlights – The company recently released its results for the financial year ending on 30 June FY21, stating the decline in revenues by 22% to US $654k in FY21 as compared to US $847k in FY20. Besides the decline in revenues, the losses were improved by 44% to US $3.04 million in FY21 as compared to the loss of US $5.47 million in FY20. The cash balances were increased to US $1.10 million in FY21. On the operational front, the company and the Department of Energy (DOE) funded project continues with key purchased orders placed for additional equipment. To further fund the operations and the growth trajectory, the company raised A$4.14 million in tranches in July 2021.

Technical Analysis- The stock gave a breakout around $0.026 and showed a gradual uptrend with wide dips giving the extra volatility edge to the stock price and eventually turning downwards after showing the highs of $0.065. The relative strength index is at 53.871, which is between the overbought and oversold range, pointing at the directionless movement of the stock prices from current levels. The 21 days simple moving average is hovering closer to the stock price and placed in proximity at $0.013, which implies a lack of concrete trend formation or continuation at current levels. Since the prices are declining and trading at lifetime lows, the support levels are tough to be plotted on the charts. For the stock to regain the upwards movement, the resistance of $0.019 should be breached with strong volumes.

Declining revenues and accumulating losses along with the lifetime low stock prices are the crucial warning signs to stay away from the stock. From the lifetime lows, there can be a small pullback in the prices at any time for the short term. Hence, we give the rating of stock as ‘Avoid’ unless we see some turnaround in the financial or the stock prices. The recommendation was made at the closing price of $0.014, up by ~16.67%, as of 7th September 2021.

Daily Technical Chart – CFO

Source: REFINITIV

iSignthis Limited (ASX: ISX)

ISX is engaged in providing identification and payment authentication services, including in anti-money laundering (AML)/counter-terrorist funding (CTF), Know your customer (KYC) identity proofing. It provides online payment security, Internet identity, e-mandates and e-contract validation services to e-Commerce operators, and assists AML and CTF. The Company's solutions include Evidence of Identity (EOI), e-Know Your Customer (eKYC) and Strong Customer Authentication (SCA).

Financial & Operational Update – On 1^st September 2021, the company announced that it is investigating a proposed demerger of subsidiary ISX Financials EU Ld (ISXFEU) through a reduction in the capital of ISX, the approval of which can be expected in October 2021. Recently the company released its half-yearly results ended on 30^th June 2021, stating the decline in revenues by 7.58% to Euro 10.72 million 1H FY21 and the net losses reaching Euro 376k, and there were no dividends declared during the current financial period. There has been a slight decline in the Net Tangible Assets per ordinary share to Euro 0.96 cps in the current period as compared to the Euro 1.07 cps in the previous period. On the quarter-on-quarter basis, the company experienced an increase in cash receipts by 17% to Euro 5.7 million as compared to the previous quarter. The cash and cash equivalents at the end of the quarter stood at Euro 9.8 million, up by Euro 0.2 million from the previous quarter of Euro 9.6 million.

Technical Analysis- The stock is under the restricted category, hence technical analysis cannot be done.  

The stock is under the restricted category, hence it's better to wait for the trading to resume and then analyse from that level.

Daily Technical Chart – ISX

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 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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