Marley Spoon AG (ASX: MMM)

MMM provides subscription-based weekly meal kit services in Australia, the United States, Austria,  and various other European Nations. The company creates original recipes and delivers ingredients directly to customers for them to prepare and cook. The company was incorporated in 2014 and is based in Berlin, Germany, having a market capitalization is $499.24 million, at the current price of $1.90 per share.

Financial & Operational Highlights – on 1^st July 2021, the company announced it signed the agreement for a secured credit facility for US $65 with Runway Growth Credit Fund Inc. for supporting its growth and expansion plans. On 29^th July 2021, its 2Q FY21 business activity report was released, wherein net revenue was showed an increase of 10% to EUR 80.60 million on the prior corresponding period (PCP) and H1 2021 net revenue grew at 36% versus the PCP, and 38% growth on a constant currency basis. On further breaking down the contributor, globally the Contribution Margin in 2Q FY21 was at 27% because of the negative operating environment in the US, which declined by 4pts on the PCP. The management reaffirmed Net revenue growth guidance at 30-35% for CY21 and Contribution Margin guidance was revised to ~29% YoY.

Technical Analysis- The stock exhibits a volatile nature, forming the wider gap between its highs and lows and with odd spikes and dips in between. The relative strength index at 26.652, which is in the lower end of the zone, giving a strong indication for the oversold prices at current levels.  The 21 days simple moving average is hovering above the stock price at $2.420, which implies the further downside movement of the stock from current levels. The support for the current trend is at $1.42 and the resistance is at $2.55. Breaking either side of the range will give a clear picture of the trend formation. 

Rising revenues, reaffirming guidance for CY2021 revennues, and extremely discounted stock prices hovering at recent lows and close to the support zone, gives the stock the rating of 'Speculative Buy' at the closing price of $1.90, down by ~2.56%, as of 12^th August 2021.

Daily Technical Chart – MMM

Source: REFINITIV

New Hope Corporation Limited (ASX: NHC)

NHC is engaged in exploration, development, production and processes of coal, and oil and gas properties. It operates through three segments: Coal mining in Queensland, Coal mining in New South Wales, and Other. The company was incorporated in 1952 and is based in Brisbane, Australia, having a market capitalization of $1.70 billion, at the current price of $2.090 per share.

Financial & Operational Highlights – On  25^th June the announced it has issued $200 million of senior unsecured convertible notes due on 2026, and the proceeds from the issue will be used for growth expansion and M&A activities. On 30^th April 2021, the company reported its quarterly activities, stating the EBITDA of $101 million along with the strong cash generation for the quarter ending April 30^th 2021. The Newcastle coal price has increased by 78% (monthly average) since September 2020 and is expected to rise further. Bengalla realised the average sales price for the quarter was $105.41/T against $87.42/T for the prior quarter. In the 1H FY21 ending on 31^st January 2021, revenues were down by 34.4% to $405.53 million and the net loss after tax was reported at $55.38 million.

Technical Analysis- The stock showed a continuous uptrend and formed the recent highs of $2.11 and prices are hovering at similar levels. The relative strength index at 70.00, which is in the upper end of the zone, giving a strong indication for the overbought prices at current levels.  The 21 days simple moving average is hovering below the stock price at $1.939, which implies the further upside movement of the stock from current levels. The support is $1.79 and resistance is placed at $2.55.

Declining revenues, accumulating net losses, and elevated stock prices, gives un-comfort to the investors. Hence we give an 'Avoid' rating on the stock at the closing price of $2.090, up by 1.95%, as of 12^th August 2021.

Daily Technical Chart – NHC

Source: REFINITIV

Cettire Limited - (ASX: CTT)

CTT is the online luxury goods retailing business in Australia. The Company offers a selection of in-demand personal luxury goods through its Website. It has access to personal luxury goods, including apparel, shoes, bags and accessories from various brands globally, including Gucci, Prada, Burberry, Bvlgari, Versace, Coach, Dior, Saint Laurent and Moncler. The company was incorporated in 2014 and is based in Melbourne, Australia. The market capitalization stood at $953.09 million, at $2.64 per share.

Financial & Operational Highlights – on 11^th June 2021, the company was added by the S&P Dow Jones Indices to its S&P/ASX Indices, which will enable the investors to track the stock and invest as per the mandate. On 1^st July 21, the company launched a website for children's wear segment, having access to more than 6,000 children wear products and expanding over time. On the financial front, the company reported gross revenue of $52.7 million in H1FY21 which grew by 476% YoY. Further, the product margin stood at 38% and Adjusted EBITDA margin at 11%, for the same period.

Technical Analysis- The stock exhibits a strong uptrend, forming higher highs and higher lows and formed the light time high of $2.94 and corrected slightly from there. The relative strength index at 67.69, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side.   The 21 days simple moving average is hovering below the stock price at $2.165, which implies the further upside movement of the stock from current levels.   The support for the current trend is at $1.95 and the resistance is at $2.94. Breaking either side of the range will give a clear picture of the trend formation.

Rising revenues, improving profitability, and lifetime high stock prices, gives the stock an expensive valuation. Hence we give an 'Avoid' rating on the stock at the closing price of $2.64, up by 5.6%, as of 12^th August 2021.

Daily Technical Chart – CTT

Source: REFINITIV

Lark Distilling Co. Limited (ASX: LRK)

LRK is an Australia-based company, which is engaged in identifying and assessing new investment opportunities for the Company's prospects. The Company operates through two segments: Australia and China. The company was incorporated in 1839 and is based in Hobart, Australia. The market capitalization stood at $302.86 million, at $4.82 per share.

Financial & Operational Highlights – On  21^st July the company released its Quarterly activities report, for Q4FY21, where it stated that it has received IWSC awards, whisky won 1 Gold, 7 Silver & 2 Bronze across our Core & Limited Release programs. The Q4FY21 net sales were up by 244% YoY to $3.99 million versus $794k in Q4FY20. The cash balance was reduced to $7.64 million as of 30 June 2021.

Technical Analysis- The stock showed a continuous uptrend and formed the recent highs of $5.01 and prices are hovering at similar levels. The relative strength index at 66.085, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side. The 21 Day Simple Moving Average is currently hovering below the stock price at $4.586, indicating more bullishness on the stock from current levels. the support is $4.52 and resistance is placed at $5.01.

Rising revenues, declining cash balances, and elevated stock prices, gives the stock an expensive valuation. Hence we give an 'Avoid' rating on the stock at the closing price of $4.82, as of 12^th August 2021.

Daily Technical Chart – LRK

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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