Douugh Limited (ASX: DOU)

DOU is an Australian based fintech company, which provides neobank and AI-driven financial wellness apps. It allows people to better manage their money and live financially healthier. The company was incorporated in 2016 and is based in Osborne Park, Australia. The market capitalization stood at $62.35 million at $0.093 per share.

Financial & Operational Update – on 29^th July 2021, the company released is Q4FY21 quarterly report ended 30 June 2021 where it stated that it successfully entered the Forex space by forming a strategic partnership with OXF to provide services related to Foreign Exchange to its clients. It launched an instant bank account funding with Stripe to compliment the launch of instant virtual debit card issuance with Mastercard. Further, it secured RIA license in the USA to provide robo-advisory investment services to its client, helping them to expand its presence across one of the prominent financial hubs. The most prominent revenue driver is coming from the customer acquisition, which grew from 26.5k in Q3FY21 to 32.2k in Q4FY21. On the financial front, the cash receipts from customers grew to $48k in Q4FY21. The cash balance was decreased for the period ending on 30^th June 2021 to $10.33 million from $13.30 million as of 31^st March 2021.

Technical Analysis- The stock depicted wide swings post-breakout towards the upside printing the recent highs of $0.49 and eventually crawled in the low volatile trading range. The relative strength index is at 46.296, which is in the middle range of the zone, pointing to directionless price movement. The 21 days simple moving average is hovering close to the stock price and placed at $0.094, diluting the strong trend indication from the current price. Since the prices are in the low volatile zone, the support and resistance are to be placed very cautiously, as a breakout on either side can give a strong trend formation. The support is placed at $0.080 and for the prices to regain the uptrend, a resistance of $0.1105 needs to be taken off with strong volumes.  

Improving revenues, declining cash balances along with various strategic ties and expansion plans, the stock prices are still in the low volatile zone and refrain from reflecting the fundamentals updates. Hence, we give the stock the rating of ‘Avoid’ at the closing price of $0.093, down by ~1.064%, as of 18^th August 2021.

Daily Technical Chart – DOU

Source: REFINITIV

Kalamazoo Resources Limited (ASX: KZR)

KZR is engaged in the exploration and development of mineral properties in Australia, covering gold and base metal deposits. It holds interests in the Castlemaine gold project, the South Muckleford gold project; the Pilbara gold and base metal project and the Ashburton gold project comprising 4 mining leases and 3 exploration licenses. The company was incorporated in 2011 and is headquartered in West Perth, Australia. The market capitalization stood at $49.64 million at $0.37 per share.

Financial & Operational Updates – On 29^th July 2021, the company released its activities report for the quarter ending 30^th June 2021, stating the updates on its production and exploration activities. For its Ashburton Gold project, the drilling excursion went up to 15,000m of Reverse Circulation and the assay results acknowledge the potential of gold mineralisation in that surface area. The results from its Dom’s Hill project assay activities suggest the probability of Pegmatite-hosted lithium mineralisation across the area. On its South Muckleford Gold project, the drilling and multi-event assay results confirm the presence of gold-antimony-arsenic mineralised reef structures beneath the area. The company did not record cash receipts from its customers for the straight 12 months ending on 30^th June 2021. The increasing operational activities and expenses, further lead to the drain on its cash reserves, which declined to $5.85 million for the quarter ending 30^th June 2021, from $7.11 million in the previous quarter ended on 31^st March 2021.

Technical Analysis- The stock is in a downtrend forming lower lows and lower highs and entered a low volatile zone, seeking stable prices before taking further trend formation/ continuation from current levels. The relative strength index shows 49.125, which is in the middle zone of the range, implying the prices are moving in a range-bound manner. The 21 days simple moving average is placed at $0.365, which is closer to the stock price, indicating a lack of clear trend formation from the current levels. Since the prices are in a range, hence the breaking of either side of the support or resistance will lead to a breakout in either direction. Support of the stock is placed at $0.335 per share and the resistance is plotted at $0.4250 per share.

Due to a lack of operating revenues, exploration risks, environmental regulations, and declining stock prices, we give the stock the rating of ‘Avoid’ at the closing price of $0.370, as of 18^th August 2021.

Daily Technical Chart – KZR

Source: REFINITIV

ClearVue Technologies Limited - (ASX: CPV)

CPV is engaged in providing building integrated photovoltaic (BIPV) solutions worldwide covering varied offerings for homes, vehicles, mobiles, public spaces, commercial buildings, and agriculture applications. The company was incorporated in 1995 and is based in West Perth, Australia, with a current market capitalization is $63.06 million, with the current price of $0.295 per share.

Financial & Operational Highlights – On 30^th July 2021, the company released its activities report for the quarter ending 30^th June 2021, stating it achieved a breakthrough across its product development of single and double glazing versions of its ClearVue PV IGU solar glazing products, bringing in incremental sales revenue. Further, it signed a term sheet to form a Joint Venture with eLstar Dynamics Holdings B.V., Netherlands to work collectively in developing new products for self-powered windows solutions capable of producing energy and control lighting usage. The company experienced growth momentum picking-up in the European market.  On the financial front, the company reported a modest increase in cash receipts from its customers to $28k for the quarter ending June 2021 as compared to the $21k in the preceding period. To ensure the smooth running of the operations and fund the various expansionary activities, the cash balances were raised significantly to about $16 million in 4Q FY21 from a mere $2.8 million compared to 3QFY21.

Technical Analysis- The stock showed a gradual and strong uptrend in 2020 and peaked in April 2021, printing the lifetime high of $0.99, to be sold off immediately and entering into the downward trajectory to date. The relative strength index is at 40.297, which is drifting towards the lower end of the range, indicating the carnage is not yet done with the stock prices, and bears are still in control. The 21 days simple moving average is placed in tandem with the stock price at $0.313, indicating a sideways movement from the current level, which can lead to further trend formation from here.  The support is placed at $0.245, from where we can witness bargain hunting, whereas the resistance is placed at $0.3850 levels. Breaking either side of the range will give a clear picture of the trend formation. 

The modest gain in the operating income, sky-high expansion plans and increase in cash balances are not truly reflecting in the declining stock prices. Therefore, we suggest 'Avoid’ on the stock at the closing price of $0.295, down by ~1.667%, as of 18^th August 2021.  

Daily Technical Chart – CPV

Source: REFINITIV

State Gas Limited (ASX: GAS)

GAS is an Australian based company, dealing in the exploration and development of gas fields in the Australian continent. Its principal property is the Reid’s Dome gas project comprising the production lease 231 permits located in the Bowen Basin in Central Queensland. The company was incorporated in 2017 and is based in Brisbane, Australia. The market capitalization stood at $76.99 million at $0.430 per share.

Financial & Operational Highlights – On 30^th July 2021, the company released its activities report for the quarter ending 30^th June 2021, stating the updates on its exploration activities spread across various projects. For its Nyanda 4 well project, the gas production reached approximately 700,000 cft/day before stabilising at 140,000 cft/ day. The company’s first drilling at Rolleston- West project (ATP 2062), which is 100% owned, acknowledges the probability of seam gas play. The company did not record any cash received any cash receipts from its customers for the straight 12 months ending on 30^th June 2021. This resulted in the dent in its cash outflows from operations, which have increased to $0.31 million for the 4QFY21 from outlflows of $63k in3QFY21. Further, the cash balances declined to $3.16 million on 30^th June 2021 from the balance held in the period ending on 31^st March 2021 of $6.27 million.

Technical Analysis- The stock showed a gradual downtrend with sudden spikes on either side, making the stock more volatile as the prices drop. The relative strength index is at 37.61, which is heading towards the lower end of the zone, indicating some more downtrend left with the stock to push the prices lower. The 21 days simple moving average is hovering above the stock price at $0.464, which implies the further downside movement of the stock from current levels. For the prices to find stable grounds, the support of $0.36 should be well respected and held firmly. Since the stock prices exhibit volatile nature, hence the resistance can be plotted at elevated levels of $0.59.

Due to the lack of operating revenues, declining cash balance and increasing cash outflows, resulting in the declining stock prices, we give the stock the rating of ‘Avoid’ at the closing price of $0.430, down by ~3.37%, as of 18^th August 2021.

Daily Technical Chart – GAS

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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