Pure Hydrogen Corporation Ltd Limited (ASX: PH2)

PH2 is involved in the Hydrogen development and Fuel Cell technology. It is also engaged in purchase of Hydrogen and supplying it to Asia Pacific (specifically Japan and Korea). Its market capitalization stood at AUD 149.09 million as of 23^rd November 2021.

Financial and Operational Updates: As per 18^th November 2021 update, after the integration of the results of Serowe-2 and Serowe-3 appraisal well, it has received third party certified 2C resources of 160.6 BCF with prospective resources of 10.07 TCF (best estimate) at its Botswana Serowe-CSG project. As per 12^th November 2021 update, the company’s Serowe 4 (spudded) and 5 drilling in Botswana will commence by the end of CY2021.

As per the agreement negotiated with CAC-H2 for 3 hydrogen plants, the first plant in Brisbane is expected to see operations in late 2022 followed by Melbourne & Sydney plants in mid-2023. As per the Quarterly Update on 29^th October 2021, its sales receipts for 1QFY22 were reported as Nil and closed the quarter with a cash balance of ~AUD 9.495 million at the end of 30^th September 2021 versus ~AUD 10.116 million at the end of 30^th June 2021. As per the Annual Year Report released on 3^rd November 2021, total income was reported as ~AUD 8k in FY21 versus ~AUD 9k in FY20. It increased its Net Losses after Taxes Y-o-Y and reported as ~AUD 2.78 million in FY21 as against the net losses after tax of ~AUD 1.53 million for FY20.

Technical Analysis: PH2 prices are sustaining above the horizontal trend line support level at AUD 0.44 and continuously taking support of the same on the daily chart. Moreover, the prices are trading above the trend-following indicator 50-period SMA, which may act as a support level. The leading indicator RSI (14-period) is trading at ~48.82 level. An important support level for the stock is placed at AUD 0.420, while the key resistance is at AUD 0.615.

Considering the recent drilling updates and agreement with CAC-H2 and its current price levels, it is prudent to suggest the investors with a high-risk appetite a ‘Speculative Buy’ stance along with incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current market price of AUD 0.485 per share, as of 23^rd November 2021, 10:43 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are extremely high in view of the further updates on drilling and their results.

Daily Technical Chart – PH2

Source: REFINITIV

Far Limited (ASX: FAR)

FAR was founded in 1984, is engaged in oil and gas exploration and development covering segments in Australia, namely, The Gambia, Guinea-Bissau, Senegal and corporate. Its market capitalization stood at AUD 72.84 million as of 23^rd November 2021.

Financial and Operational Updates:  As per the update on 15^th November 2021, it had commenced its drilling at its Bambo-1 exploration well in block A2 at offshore of The Gambia. On 2^nd November 2021, Allan Gray Australia Pty Ltd increased its substantial shareholding from ~8.9% to 7.59%. As per the Quarterly Activities Report on 18^th October 2021, it received a sale proceeds of ~USD 126 million from the sale of Senegal RSSD to Woodside. The receipts for 3QFY21 were reported as Nil and cash balance at the end of 30^th September 2021 was reported at ~USD 64.72 million versus ~USD 3.31 million at the end of 30^th June 2021. As per the Half Yearly Report released on 13^th September 2021, it had reduced its Net losses after tax from ~USD 21.24 million in 1HFY20 to Net Losses after Tax of ~USD 7.09 million in 1HFY21.

FAR scrip re-started its trading on ASX on 23^rd July 2021 after the sale of Senegal Project. Trading on was on halt since September 2020. On 28^th September 2021, FAR returned a total of ~AUD 80 million (at the rate of AUD 0.80 per share) to its shareholders.

Technical Analysis: On the weekly chart, FAR’s prices are taking support of the horizontal trend line at ~AUD 0.72. The momentum oscillator RSI (14-period) has recovered from the lower band of an oversold area and now placed at ~32.54 level, indicating a gain of momentum in the prices, supporting an upside short-term movement. The crucial support level for the stock is placed at AUD 0.660, while the key resistance is at AUD 0.840.

With sale of Senegal RSSD, reduction of Net Losses in 1HFY21 and capital return to the shareholders, FAR has resumed its trading on ASX. On current price levels and keeping in mind the updates, it is prudent to suggest the investors with a high-risk appetite a ‘Speculative Buy’ stance along with incorporating the support and resistance as one of the tools while analysing the investment opportunity. The stock was analysed as per the current market price of AUD 0.730 per share, as of 23^rd November 2021, 10:38 AM (GMT+10), Sydney, Eastern Australia. However, the risk levels are extremely high in view of the further updates on drilling and their findings.

Daily Technical Chart – FAR

Source: REFINITIV

Minerals 260 Limited (ASX: MI6)

MI6 is a gold, platinum, palladium, nickel and copper exploration company. Its main projects consist of Moora Project and the Koojan JV Project. MI6 was listed on ASX on 12^th October 2021 and currently holds a market capitalization of AUD 163.90 million as of 23^rd November 2021.

Financial and Operational Updates: On 4^th November 2021, it commenced its inaugural drilling program of ~3,500m at Moora Gold-PGE-Nickel-Copper Project. It is the first program after its demerger from Liontown Resources Limited and its IPO of AUD 30 million on 12^th October 2021. On 1^st November 2021, it appointed Emma Scotney as a Non-Executive Director. As per Annual Report (27days ended on 30th June 2021) released on 27^th October 2021, total income was reported as Nil in FY21. Its Net Losses after Taxes were reported as ~AUD 1.12k in FY21.

Technical Analysis: As stated above, MI6 is a newly added stock on ASX on 12^th October 2021. Hence, it is difficult to comment on its Technical Front.

Due to lack of appropriate information on the scrip, it is prudent to suggest the scrip as A ‘Watch’. The stock was analysed as per the closing price of AUD 0.700 per share, down by ~6.041%, as of 23^rd November 2021.

Daily Technical Chart – MI6

Source: REFINITIV

NeuroScientific Biopharmaceuticals Limited (ASX: NSB)

NSB is an Australian company which works on developing peptide-based pharmaceutical drugs targeting neurodegenerative conditions. It was incorporated in 2002 and holds a market capitalization at AUD 50.93 million as of 23^rd November 2021.

Financial and Operational Updates: On 22^nd November 2021, it partnered with Imeka – the world leading neuroimaging company with cutting edge Diffusion MRI imaging technology. On 2^nd November 2021, it had partnered with International CRO (contract research organisation), Biospective for its R&D studies on multiple sclerosis. As per the Quarterly Update on 29^th October 2021, two key drug development experts were chosen for its scientific advisory team. Net operating cash outflow for 1QFY22 was reported as ~AUD 1.26 million and it spent ~AUD 257k in R&D and ~AUD 774k in administration and corporate costs. The cash receipts reported were Nil and closed its 1QFY22 with the cash balance as ~AUD 12.898 million at the end of 30^th September 2021 versus ~AUD 14.16 million at the end of 30^th June 2021. As per the Annual Report, its Net Profit After Tax increased to ~AUD 3.177 million in FY21 versus ~AUD 2.868 million in FY20.

Technical Analysis: On the weekly chart, NSB’s prices are consolidating around an upward sloping trend line and taking support of the same. Current price levels are struggling to surpass the 21-period SMA, which may act as a crucial resistance zone for the stock. The momentum oscillator RSI (14-period) is trading at ~51.360 levels, indicating the lack of momentum and directionless movement. An important support level for the stock is placed at AUD 0.325 while the resistance level is at AUD 0.420.

Keeping in mind its directionless movement gauged by RSI and nil cash receipts from customers in 1QFY22, it is prudent to suggest the scrip as A ‘Watch’. The stock was analysed as per the closing price of AUD 0.365 per share, up by ~2.816% as of 23^rd November 2021.

Weekly Technical Chart – NSB

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 Yellow colour line represents the Trendline.

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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