Doctor Care Anywhere Group PLC (ASX: DOC)

DOC is a UK based telehealth service provider connecting health insurers, healthcare providers and corporate customers with patients by using its cloud-based technology platform including Virtual GP and Internet Hospital. It holds a market capitalization of AUD 215.97 million as of 15^th October 2021, at the stock price of AUD 0.680 per share.

Financial & Operational Updates – As per the announcement dated 14^th September 2021, DOC expanded its business in a 4.9 million populated region of the Republic of Ireland. On 13^th September the escrow restrictions posed on 129,444 Ordinary Fully Paid restricted securities (ASX code: DOCAA) got removed and an application for quotation of the CDI securities is expected to be lodged. On 9^th of September 2021, the company acquired 100% stake in GP2U Telehealth Pty Ltd of Australia for a sum of AUD 11 million (2.5x of unaudited gross revenue for FY21) and forayed to the Australian Market. As per the Interim Financial Report (Unaudited) for the six months ending in June 2021, released on 18^th August 2021, showed Y-o-Y increase in Total Revenue to reach ~£11.23 million for 1HFY21 as against £4.57 million in 1HFY20. Its total comprehensive loss decreased from ~£18.66 million in 1HFY20 to ~£8.04 million. Cash at the end of 1HFY21 was reported as ~£31.47 million as of 30^th June 2021 versus ~£38.36 million in PcP.

Technical Analysis: On a weekly chart, DOC's price broke the falling wedge pattern (bullish pattern) by an upside and the prices are sustaining above the breakout level from past 6 weeks. RSI divergence with price is also visible on a weekly chart that also confirms our bullish stance. RSI (14-period) is hovering near to oversold territory i.e., ~37.546 levels. The next immediate resistance levels are AUD 0.800 and AUD 0.880 while immediate support levels are AUD 0.620 and AUD 0.570.

Its strategic alliances and its perpetual globalisation strategies along with its decent financial performance in 1HFY21, DOC can be considered for a ‘Speculative Buy’ position by the investors with a high-risk appetite but keeping the support and resistance level as crucial points. The stock was analysed as per the current price of AUD 0.68 per share, 02:57 PM (GMT+10), Sydney, Eastern Australia, as of 15th October 2021. However, the risk levels are high depending on its performance in an upcoming third quarter 2021 update awaited to be released on 20th October 2021 as well as the expected versus actual synergies derived from the acquisition.

Weekly Technical Chart – DOC

Source: REFINITIV

PPK Group Limited (ASX: PPK)

Incorporated in 1990, PPK is an Australian company engaged in investment in a battery technique - lithium-sulphur (Li-S) battery using Boron Nitride Nanotubes (BNNT). Besides, it is also involved in commercialisation of high-performance batteries, ballistic armour for commercial and military use, and mining technology. Its market capitalization as of 15^th October 2021 stood at AUD 1.14 billion and the share price stood at AUD 13.13 per share.

Financial and Operational Updates: As per the release on 5^th October 2021, its subsidiary, White Graphene Limited had signed an agreement with Sun Metals Corporation Pty Limited, a subsidiary of Korea Zinc Company Limited, for developing protective coatings. On September 2021, it raised AUD 34.00 million through IPO of its subsidiary, Li-S Energy Limited. On 23^rd September 2021, it had partnered with Xefco Pty Limited for immediate production of anti-viral, anti-bacterial face masks. On 3^rd September PPK was added in S&P/ASX 300 Index list, effective from 20^th September 2021. As per the release of Annual Report on 31^st August 2021, the production capability technology of its subsidiary, BNNT, has been improved to 400kgs. It is expecting to add two 6 furnace module production units in FY22. There is no revenue generation and it had posted Net Losses of ~AUD 6.31 million in FY21 as compared to Net Profit of ~AUD 8.25 million in FY20. Cash at the end of 30^th June FY22 was recorded as ~AUD 30.36 million versus ~AUD 5.34 million in Pcp. On 27^th August 2021, it was released that it is expected to be promoted to the FTSE Small Cap Index for Asia Pacific. After White Graphene Limited’s initial production module in August, it is expected to commission the same in 1QFY22.

Technical Analysis: After correcting from the 52- week high of AUD 21.95 touched on September 10, 2021, currently the PPK stock prices are trading above the horizontal trend line crucial support level at AUD 12.50 and continuously taking support of the same. The leading indicator RSI (14-period) is trading in an oversold zone at (~ 29.96 level) and which might indicate the possibility of a rebound from the lower levels. However, the prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, which might act as a crucial resistance zone. An important support level for the stock, is placed at AUD 12.50 while the key resistance level is placed at AUD 14.30.

Due to conversion of profits into losses in FY21 and its current overbought RSI levels it looks like a risky bet at this level, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing market price of AUD 13.13 per share, down by ~0.906%, as of 15^th October 2021.

Weekly Technical Chart – PPK

Source: REFINITIV

Alligator Energy Limited (ASX: AGE)

Incorporated in 2009, it is an Australia based energy metal-based exploration company, mainly focussing on uranium in South Australia and Northwest Italy. It also had farm-in and directly help leases for nickel (Ni), cobalt (Co), copper (Cu) region. Its market capitalization as of 15th October 2021 stood at AUD 181.49 million and the share price stood at AUD 0.070 per share.

Financial & Operational Updates – In the recent update on 14^th October 2021, the company completed share issuance and raised AUD 11 million and offered one for ten Loyalty Option to all shareholders, expiring on 1^st February 2022. As per the release of Annual Financial Statements on 24^th September 2021, AGE reported other income for the FY21 as ~AUD 3.14k versus ~AUD 5.78k in the FY20. Its total comprehensive loss for FY20 was ~AUD 0.98 million versus ~AUD 0.99 million in FY21. Cash at the end of FY21 was reported as ~AUD 1.63 million as of 30^th June 2021 versus ~AUD 0.90 million in PcP. On 22^nd September 2021, it confirmed its acquisition completion of non-core exploration license EL6350 from Stellar Resources Limited for a total sum of AUD 7.105 million.

Technical Analysis: AGE's prices witnessed sharp upside movement from the low of AUD 0.023 made in Aug-21 to the high of AUD 0.115 made in Sep-21 and gained ~400% during the tenure and post that price entered the correction phase. On the daily chart, RSI (14-period) reached around mid-point from an overbought zone and trading at ~53.447 levels. The CMP is sustaining above the trend-following indicator 50-period SMA, supporting a positive stance; however, below 21-period which acts as a resistance level for the stock.

The risk attached in investing in the scrip at current price and RSI levels, seems to be on a higher side as AGE incurred Net Losses as last year, therefore, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.070 per share, down by ~6.667%, as of 15^th October 2021.

Daily Technical Chart – AGE

Source: REFINITIV

Mithril Resources Limited (ASX: MTH)

MTH was incorporated in 2002, is involved in precious metal exploration, acquisition and development, mainly gold and silver. It has projects like Copalquin District mining in Mexico and Copalquin Gold Silver Project in Australia. Its market capitalization stood at AUD 38.55 million as of 15^th October 2021, at the stock price of AUD 0.015 per share.

Financial and Operational Updates: As per the announcement on 15^th October 2021, it had issued fully paid ordinary shares of 10,000,000. On the same date, MTH increased its interest to 25% aligning the 100% purchase option in Copalquin mining concessions in Mexico. On 12^th of October 2021, MTH is expected to receive a sum of AUD 0.5 million with 10% of free carried interest if the proceeds from biding contract of sale of Limestone Well tenements gets executed with Auteco Minerals Limited. As per the Annual Report for FY21 released on 29^th September 2021, other income decreased from ~AUD 72.31k in FY20 to ~AUD 53.16k in FY21. Its Net Losses of ~AUD 3.36 million in FY20 decreased to ~AUD 1.42 million in FY21. Cash at the end of FY21 was reported at ~AUD 2.92 million as of 30^th June 2021 versus ~AUD 1.18 million in PcP. As per the update on 8^th September 2021, high-grade gold and silver were confirmed at the El Refugio structure near to the Bonanza intercept of CDH-077 (8.26m @80.3g/t gold, 705g/t silver from 468.34m). On 1^st September 2021, MTH completed its fundraising for AUD 3.3 million to be used for drilling in the Copalquin Gold Silver District in Mexico.

Technical Analysis: On a weekly chart, MTH’s price is trading below both 21-period and 50-period SMA and is majorly placed at support level which might further trigger a breakout post a resistance level of AUD 0.019. Furthermore, the momentum oscillator RSI (14-period) is trading at ~44.16 level, which indicates indecisive momentum for the stock. The next immediate support levels are AUD 0.012 and AUD 0.008 while the immediate resistance levels are AUD 0.019 and AUD 0.024.

Considering above mentioned points MTH still needs some time to generate revenue and price levels are not supportive, hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.015 per share, as of 15^th October 2021.

Weekly Technical Chart – MTH

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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