Archer Materials Limited. (ASX: AXE)

AXE  was incorporated in 2007 and is based in Adelaide, Australia. The company is engaged in the development of materials in quantum computing, biotechnology, and lithium-ion batteries. It is also involved in exploring graphite, copper, gold, nickel, cobalt, manganese, tin, and tungsten deposits. The company's current market capitalization is $300.30 million with the current price of $1.25 per share.

Fundamental Highlights- The company recently announced the sale and purchase of the Wadikkee and Carappee Hill tenements to NextGen Materials Pty Ltd (‘NextGen’) for total consideration of $1.85 million. Further, the company confirms the early indication of on-chip qubit control in microscopic scale qubit material which marks an achievement in CQ quantum computing chip development. The company failed to record any cash receipts from its customer for the past three quarters ending on 31^st March 2021. There was an increase in negative cash flows from operations on 31^st March 2021 of $0.53 million compared to $0.45 million on 31^st December 2020. The cash and cash equivalents also witnessed a drop to $6.61 million on 31^st March 2021 compared to the $6.93 million on 31^st December 2020. The company has no debt on its book as of 31^st March 2021.

Technical Analysis- The stock is in a continuous uptrend past few weeks and recently printed the lifetime high of $1.38. The Relative Strength Index shows 72.02, which is in the upper end of the zone and indicates a strong uptrend to continue. The 21 Days Simple Moving Average is $0.99 which is below the stock's closing price and indicates a further uptrend in the near term. The support is placed at $1.085, which must be maintained to keep the current trend intact. Since the stock is near the lifetime high levels, there is no viable resistance on the charts; the strong trading volumes must be accompanied to take the stock towards the North.

Absence of cash receipts from the customers, rising negative cash outflows, and lifetime high stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $1.250, down by ~5.30%, as of 19^th July 2021.

Daily Technical Chart – AXE

Source: REFINITIV

BARD1 Life Sciences Limited- (ASX: BD1)

BD1 was incorporated in 1983 and is based in Notting Hill, Australia. The company is engaged in the research, development, and commercialization of non-invasive diagnostic products to detect cancer at early stage The company is also providing Molecular NET technology, including its EXO-NETTM product to capture and purify exosomes. The company's current market capitalization is $148.50 million with the current price of $1.82 per share.

Fundamental Highlights- The company recently announced the positive test results from the BARD1 autoantibody assay to detect ovarian cancer, improving the sensitivity of the detection from 27% to 91%. There has been a significant decline in cash receipts from customers on 31^st March 2021 to $42k as compared to the $152k on 31^st Dec 2020. The cash and cash equivalents also witnessed a drop to $6.01 million on 31^st March 2021 as compared to the $7.25 million on 31^st December 2020. It should be noted that the company recorded a total comprehensive loss of $3.30 million for the 1H FY21.

Technical Analysis- The stock gave a strong breakout and showed a vertical rise in Feb 2021 and entered into the downtrend since then forming lower lows and lower highs. The Relative strength index is currently pointing at 42.61 which is in the middle zone and lacking any trend confirmation n the near term. The 21 Days Simple Moving average is hovering near the stock prices at $1.90, showing the mixed trend signals from the closing. The support is currently placed at $1.65, which should be respected for the prices to refrain from failing further. The resistance of the stock is $2.20, which needs to be taken off the charts for the stock to resume any further upside.

Declining cash receipts from customers, accumulating losses, and downward trending stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $1.82, down by ~1.89%, as on 19^th July 2021.

Daily Technical Chart – BD1

Source: REFINITIV

Berkeley Energia Limited- (ASX: BKY)

BKY was incorporated in 1991 and is based in Madrid, Spain. The company is engaged in the exploration and development of uranium properties in Spain. It primarily holds interest in the Salamanca project located in western Spain. The company's current market capitalization is $88.05 million with the current price of $0.33 per share.

Fundamental Highlights- The company recently announced it received an unfavorable report on the grant of the Authorisation for Construction for the uranium concentration plant as a radioactive facility by  ‘Nuclear Safety Council’.  The company failed to record any cash receipts from customers for the past 3 quarters ending on 31^st March 2021. The major component of cash outflows from operations is the ‘exploration and evaluation’ cost, comprising more than two-thirds of the total outflows. The cash and cash equivalents balance stand for the 3Q FY21 are $79.10 million, for carrying out the operations and expansions smoothly. The company recorded an increase in net loss after tax reported as of 1H FY21 was $32.57 million as compared to the $5.68 million as of 1H FY20. 

Technical Analysis-  The stock is extremely volatile, which moves on the rumours and noises in the markets. Following the downtrend in the prices, the recent dip is very much evident a part of the highly volatile prices, and near the support range of $0.305 and $0.225. The Relative Strength Index shows the reading of 31.52, which is in the lower end of the range, signalling further more downside is possible on the chart. The 21 days Simple Moving Average is placed above the stock price and shows $0.50, indicating some more downtrend in the stock price. The resistance for the stock is at $0.505 which can be taken off with strong trading volumes.

Lack of operating revenues, accumulating losses, and highly volatile stock prices suggest that investors avoid the stock at the closing price of $0.330, down by ~2.94%, as of 19^th July 2021.

Daily Technical Chart – BKY

Source: REFINITIV

Metro Mining Limited- (ASX: MMI)

MMI was incorporated in 2006 and is based in Brisbane, Australia. The company is engaged in mining exploration across Australia and China and focused primarily on coal and bauxite ores. Its primary project is the Bauxite Hills Mine property, located to the north of Weipa on Western Cape York. The company's current market capitalization is $36.77 million with the current price of $0.017 per share.

Fundamental Highlights- The company recently announced the transition of its CEO and Managing Director stepping down after six and a half years of his responsibilities, welcoming Mr. Simon Wensley as its CEO and Managing Director. Further, the S&P Dow Jones Indices removed MMI from its S&P /ASX Indices, which will make it less widely tracked among the investor community. To carry out its operations smoothly, the company announced to raise upto $25.5 million in the near term. There has been a significant decline in cash receipts from customers on 31^st March 2021 to $35k as compared to the $16.40 million on 31^st Dec 2020. The cash and cash equivalents also witnessed a drop to $15.41 million on 31^st March 2021 as compared to the $25.44 million on 31^st December 2020. The company recorded a loss after income tax of $11.12 million as of 31^st December 2020 as compared to the profit after tax of $3.62 million in the prior year.

Technical Analysis- The stock is in a continuous downtrend forming lower highs and lower lows and in bear territory for long, printing the fresh lifetime lows of $0.015. The Relative Strength Index is showing the reading of 31.53 which is at the lower end of the oversold territory, indicating further downside to the prices. The 21 Days simple moving average is currently placed above the stock's closing price at $0.19 and indicates a further downtrend to the stock. The support is placed at the lifetime lof of $0.015 and the resistance is at $0.0.42 levels.

Declining cash receipts from customers, accumulating losses, and lifetime low stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.017, down by 5.56%, as on 19^th July 2021.

Daily Technical Chart – MMI

Source: REFINITIV

Sprintex Limited - (ASX: SIX)

SIX was incorporated in 2003 and is based in Darch, Australia. The company is engaged in the manufacturing and distributing various superchargers, along with its customer support, sales and marketing services across Australia, the US, UAE and various other geographies.  The company's current market capitalization is $15.61 million with the current price of $0.073 per share.

Fundamental Highlights- The company recently established an engineering operations in China, which will have a production capacity of 50,000 units per year. The facility will be rent-free and receive grants and incentives from the Chinese Government to boost its operations. There has been a  decline in cash receipts from customers on 31^st March 2021 to $0.13 million as compared to the $0.16 million on 31^st December 2020. The cash and cash equivalents also witnessed a drop to $85k on 31^st March 2021 as compared to the $98k on 31^st December 2020. It is worth mentionining the company recorded a net profit of $2.65 million for the 1H FY21  as compared to the loss of $1.61 million in 1H FY20.

Technical Analysis- The stock has a recent listing and hence the data is not adequate to perform a technical analysis study on the charts. However, the support is placed near the lifetime lof of $0.045 and the resistance is at $0.13 levels.

Declining cash receipts from customers along with cash balances, and downward trending stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.073, as on 19^th July 2021.

Daily Technical Chart – SIX

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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