AVITA Medical Inc. (ASX: AVH)

AVH works as a commercial-stage regenerative tissue company in the United States, Australia, and the United Kingdom. The company has varied products offerings to address unmet medical needs in burn injuries, trauma injuries, chronic wounds, and dermatological and aesthetics indications, including vitiligo. AVITA Medical Inc. is based in Valencia, California.

Fundamental Highlights - The company mentioned that it had exceeded its fourth-quarter guidance in the range of $8.2-$8.6 million. For Q3 FY21, AVH clocked an increase of 126% in its revenues to $8.8 million as compared to the previous period for a similar quarter. The losses stood at ~$6.0 million, which had increased from the losses of $5.6 million posted for the quarter ending 31^st Dec 2020.

Technical Analysis - The stock printed the lifetime high of $17.30 in Feb 2020 and formed lower lows and lower highs since then. The prices are close to the support levels of $4.40, and the Relative Strength Index is pointing at 53.07, which is in the middle of the range. The resistance is placed at $6.48 and $7.53, which can bring in some fresh selling from those levels.

Considering the mounting losses, the technical analysis, and declining stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $5.400, up by 3.053% as of 7^th July 2021.

Daily Technical Chart - AVH

Source: REFINITIV

Strategic Elements Limited (ASX: SOR)

SOR was incorporated in 2006 and is based in South Pert, Australia. The company is engaged in investing in companies focusing on rare earth and rare metals exploration and material development.

Fundamental Highlights - The company recently announced to design and deliver an autonomous drone carrying vehicle used for defence purposes. To further strengthen the operations, the company announce the $3 million institutional placement offerings to fun new projects. For the 31^st March 2021 ending quarter, the company had marginal revenues of $0.025 million along with the net cash outflows from the operation of ~$0.80 million. The quarter ended with a cash balance of $5.24 million, lower than the $6.04 million posted in the preceding quarter. The net loss for the 1H FY21 was $1.34 million, lower than the loss of $1.83 million in pcp.

Technical Analysis- The prices were in an uptrend until they peaked at the highs of $0.515, and then the prices corrected gradually. This gradual sell-off will help the prices to prevent from crashing or bottoming out, which often happens during the sharp technical sell-off. The relative strength index is currently at 36.87, in the middle zone of the range, lacking any clear trend in the near term. The support is currently placed at $0.1850, which can eventually emerge as buying interest. The resistance for the stock is at $0.345.

Considering the mounting losses, marginal revenue, net cash outflows, and technical analysis, we suggest investors to 'Avoid' the stock at the closing price of $0.22, down by 2.223% as of 7^h July 2021.

Daily Technical Analysis Chart

Source: REFINITIV

Pancontinental Oil & Gas NL (ASX: PCL)

PCL was incorporated in 1985 and based in West Perth, Australia. The company is engaged in the exploration of oil and gas properties.

Fundamental Highlights - The company failed to record any cash receipts from customers for the past three quarters ending on 31^st March 2021. It had posted net cash outflows of -$0.132 million from operations for the March 2021 quarter, whereas the company maintained the cash balance of $0.78 million for the same period. This was as a result of a private placement of shares to the extent of $0.71 million.

Technical Analysis- The stock prices are in the narrow zone of $0.003 and $0.001 for very long, not showing any clarity on the technical study of the stock prices.

Considering the missing cash receipts from customers, muted share performance, and technical analysis, we suggest investors to 'Avoid' the stock at the closing price of  $0.001 as of 7^th July 2021.

Daily Technical Analysis Chart

Source: REFINITIV

Cobalt Blue Holdings Limited (ASX: COB)

COB was incorporated in 2016 and based in North Sydney, Australia. It is engaged in the exploration and evaluation of early-stage cobalt resources in Australia.

Financial Highlights:  The company announced raising $15 million to use in the projects in the pipeline. There were cash outflows from operations which stood at $0.54 million during the quarter ending March 2021. The cash in the books for the same period ending was $4.18 million vs the previous quarter ending on 31st Dec 2020 of $7.06 million.

Technical Analysis: The prices were in an uptrend until they peaked at the highs of $0.515, and then the prices corrected gradually. This gradual sell-off will help the prices to prevent from crashing or bottoming out, which often happens during the sharp technical sell-off. The relative strength index is currently at 41.03, in the middle zone of the range, lacking any clear trend in the near term. The support is currently placed at $0.225, which can eventually emerge as buying interest. The resistance for the stock is at $0.36.

Considering the cash outflows from operations with nil customer receipts, declining stock prices, and technical analysis, we suggest investors to 'Avoid' the stock at the closing price of $0.285, down by 1.725% as of 7^th July 2021.

Daily Technical Analysis Chart

Source: REFINITIV

Barton Gold Holdings Limited (ASX: BGD)

BGD is based in Lodz, Poland and is engaged in the development, production and distribution of pharmaceuticals products in Poland.

Fundamental Views: The company reported the initial income for the first half-year period ending 31^st Dec 2020 of $12k and the net loss of $2.74 million. The losses for the previous comparable period was $1.29 million, accumulating over the books.

Technical Analysis: The stock was recently listed and does not have enough price history to perform any technical analysis.

Considering the accumulating losses in the books, narrow volatility, and technical analysis, we suggest investors 'Avoid' the stock at the closing price of $0.195, up by 2.631% as of 7^h July 2021.

Daily Technical Analysis Chart

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decision should be made depending on the investors’ appetite on 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 uptrend may take a pause due to profit booking or selling interest.

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