29Metals Limited  (ASX: 29M)

29M was incorporated in 2021 and is based in Melbourne, Australia. The company is engaged in the exploration and mining of Copper focused base and precious metals. The company explores Copper, zinc, gold, and silver deposits and holds interest in the Golden Grove mine located in the mid-west region of Western Australia; and the Capricorn Copper mine located in Queensland. The company's current market capitalization is $1.07 billion, with the current price of $2.30 per share.

Fundamental Highlights- The company recently announced the updates on the Golden Grove project, delivering enhanced metallurgical outcomes and supporting an increase in the milling capacity to 1.8Mtpa. The paste fill plant in Capricorn Copper project was successfully recommissioned in June 2021, lowering the volumes of tailings required to be stored in surface tailing storage facilities and supporting the mining rates. The company recorded an increase in the gross revenues to $192.6 million of the quarter ending on June 2021 from $119.8 million on 31^st March 2021. The forecasted gross revenue for the entire year as per the company is $723.3 million. The unaudited cash balance stands at $183.8 million, and the utilized debt is 150 million for the quarter ending 30^th June 2021.

Technical Analysis- The stock was listed recently and lacked adequate data to study the chart patterns and technical analysis to form an opinion. However, with the limited data, the support could be derived at $2.07, and the resistance is $2.38.

With limited financial data and inadequate guidance on profit/ loss from the management, insufficient data to conduct the technical analysis on the charts, we suggest investors avoid the stock at the closing price of $2.30, up by ~3.14%, as of 23^rd July 2021.

Daily Technical Chart – 29M

Source: REFINITIV

Adairs Limited - (ASX: ADH)

ADH was incorporated in May 2015 and is based in Scoresby, Australia. The company is a speciality retailer providing home decoration and home furnishings across Australia and New Zealand. The significant offerings as towels, bath mats, bathroom accessories, home care products, furniture, etc. The company's current market capitalization is $669.54 million, with the current price of $3.99 per share.

Fundamental Highlights- The company recently announced updates on the acquisition of Moka. The company will pay $45 million by September 2021, funded from cash and the term debt facilities. The total cost for the acquisition of Moka comes to $95 million, which is 7x times FY21 forecasted EBIT (Earnings Before Interest and Taxes). S&P Dow Indices announced to add Addaris Limited to its S&P/ ASX Indexes, enabling the stock to be widely tracked by the investors and can attract inflows as per the portfolio mandate. The growth in the revenue for the 1H FY21 was 34.8% to $242.99 million as compared to the revenues of $180.27 million in 1H FY20. The profit grew to 2.3x to $43.86 million in 1H FY21 as compared to the $13.15 million in 1HFY20. The cash and cash equivalents were increased to $22.12 million on 31^st December 2020 than the $10.88 million on 31^st December 2019.  

Technical Analysis- The stock moved in a gradual uptrend forming higher highs and higher lows with slight hiccups in between, overall maintaining a substantial uptrend till it printed the lifetime high of $4.97 and showed resilience from those levels. The relative strength index is currently showing 45.91, which is in the middle zone of the range, indicating a lack of a strong trend in either direction. The 21 Days Simple Moving Average is currently placed in tangent with the stock at $3.985, which failed to give any trend confirmation from current levels. The stock touched the initial support of $3.69 and is still above its crucial support of $3.41, to prevent itself from entering the downward trajectory. The resistance is placed at $4.50 levels, which is the first most selling zone visible on the charts.

Expensive acquisitions along with rising debt levels and rising stock gives the stock expensive valuations at current levels. We suggest investors to ‘Avoid’ the stock at the closing price of $3.99, up by ~0.76%, as of ^23rd July 2021.

Daily Technical Chart – ADH

Source: REFINITIV 

Growthpoint Properties Australia - (ASX: GOZ)

GOZ  is engaged in providing high quality industrial and office properties across Australia. Collectively, the company owns 58 properties with a valuation of $4.2 billion. The company is operating, intending to grow the portfolio and at the same time trying to reduce the impact on the environment. Growthpoint is a real estate investment trust (REIT), listed on the ASX, and is part of the S&P/ASX 200.  The company's current market capitalization is $3.01 billion, with the current price of $3.94 per share.

Fundamental Highlights- The company recently announced the updates on the valuation of its 45 out of 55 properties, gaining 7.7% or $251 million in value as of the quarter ending 30^th June 2021. The upwards valuation will add $0.33 per security of the net tangible assets, recording $3.82 per security on 31^st December 2020. In the recent Q3 FY21, GOZ witnessed surge in occupancy rate to 96%. The gearing ratio at 29.8%, below the target range of 35%-45%. It had reaffirmed distribution guidance of 20.0 cents per share. The company upgraded FFO per share guidance of 25.4-25.7 cents per share. The revenues increased by 6.8% to $148.1 million in 1H FY 21 as compared to the revenues of $138.6 million in 1H FY20. The cash flows from operations declined to $82 million in 1H FY21 as compared to $120.7 million in 1H FY 20. The profit after tax increased by 1.9% to $205.8 million in 1H FY21 as compared to the profits of $202.0 million in 1H FY20.

Technical Analysis- The stock was sold off in March 2020 during the global sell-off on account of lockdowns globally. Since then the stock showed positive traction and eventually tried to recoup the losses but still not near pre-COVID 19 levels. The relative strength index shows a reading of 47.93 in the middle of the trading zone, depleting the one-sided trend bias from current levels. The 21 Days Simple Moving average is currently placed slightly above the stock prices at $3.994, giving a slight indication of downside from current levels. The stock's support level is placed in the zone of $3.77 and $3.47, from where some buying interest can be seen. For the stock to resume the upward path, the resistance of $4.72, should be taken off the charts with the strong volumes to hold the trend formation substantially.

Looking at the rising covid cases and fresh lockdown restrictions and impact on office vacany rates, prevailing work from home policies, elevated stock prices, we suggest investors to “Avoid” the stock at the closing price of $3.94, up by ~0.77% as of 23^rd July 2021.

Daily Technical Chart – GOZ

Source: REFINITIV

Brightstar Resources Limited - (ASX: BTR)

BTR was incorporated in 2002 and is based in Belmont, Australia. The company and its group are engaged in the exploration and development of mineral properties in Australia, covering majorly gold. It holds interests in the Alpha Deposit, Beta, and Cork Tree Well (Delta) Deposit located in Western Australia. The company's current market capitalization is $11.87 million, with the current price of $0.025 per share.

Fundamental Highlights- The company recently announced the results of the Sam survey at Cork Tree Well, which indicates a positive result of mineralisation in that spread area. To conduct the evaluation and exploration, the company acquired the exploration licence from the Mining Equities Pty Ltd, for 4 million Brightstar shares and 1 million unlisted options over ordinary Brightsatr shares with a three-year term from issue and an exercise price of 10 cents.  The company did not receive any cash receipts from customers for the quarter ending on 31^st March 2021. The cash and cash equivalents increased to $1.59 million from the cash balance of $0.36 million in the preceeding quarter. For the 1H FY21, the company noted a profit of $59.63 million as compared to the loss of $2.98 million in 1H FY20. The sudden turnaround was because of other income of $63.44 million in 1H FY21.

Technical Analysis- The stock gave a breakout in the middle of the year 2020 and since then the stock prices exploded, touching the 52-week high of $0.093, only to correct from there. Since then the stock is in a continuous downward trend forming lower highs and lower lows and revolving closer to the support of $0.02. The Relative strength index is pointing at 33.14 which is in the lower end of the zone, indicating further more downtrend is on the charts. The 21 Days Simple Moving Average is placed above the stock price at $0.030, confirming the prices' continuing downward trajectory. For the stock to show some strength,should take the initial resistance of $0.036  off the charts.

Lack of operating cash revenues in Q3 FY21, volatile commodity prices, and declining stock prices suggest that investors avoid the stock at the closing price of $0.025, down by 7.41%, as of 23^rd July 2021.

Daily Technical Chart – BTR

Source: REFINITIV

Lode Resources Limited - (ASX: LDR)

LDR was incorporated in 2019 and is based in Sydney, Australia. The company is engaged in exploring gold, silver and copper-related metals in various properties. It holds 100% interest in seven exploration licenses covering 969.3 square kilometres in the New England Fold Belt in northern New South Wales. The company was incorporated in 2019 and is based in Sydney, Australia. The company's current market capitalization is $13.59 million, with the current price of $0.17 per share.

Fundamental Highlights- The company recently announced the results from its Uralla Gold Project assay, resulting in a bulk tonnage potential of gold mineralisation underlying. As per the interim results ending 31^st December 2020, LDR posted loss of $83,711. It had closed the period with a cash balance of $579.8 k, higher than $299.1 k posted in the previous year.  

Technical Analysis- The stock was listed recently and lacked adequate data to study the chart patterns and technical analysis study to form an opinion.

Since it’s a recently listed stock, lack of recent financials, and inadequate data to study the technical analysis of the prices, we suggest investors 'Avoid’ the stock at the closing price of $0.17, as of 23^rd July 2021. And advice investors to wait for at least one to two quarters for the results and their fine prints before taking any position in the stock

Daily Technical Chart – LDR

Source: REFINITIV

Polymetals Resources Limited - (ASX: POL)

POL was incorporated in 2020 and is based in Sydney, Australia. The company is engaged in the acquisition, exploration and development of gold projects in Guinea, West Africa. It holds interests in the Alahiné licence covering 64.21 square kilometres and the Mansala licence covering 48.23 square kilometres in the Siguiri Basin. The company's current market capitalization is $11.51 million, with the current price of $0.145 per share.

Fundamental Highlights- The company recently announced the commencement of phase 2 drilling program at e East Alahiné North, Central and South prospects on 29^th June 2021. The company did not receive any cash receipts from customers for the past twelve months ending on 30^th June 2021. The cash and cash equivalents for the same period were $5.01 million.

Technical Analysis- The stock was relisted recently and lacked adequate data to study the chart patterns and technical analysis study to form an opinion. 

Since it’s a recently listed stock, nil receipts from customers, and inadequate data to study the technical analysis of the pricess, we suggest investors to 'Avoid’ the stock at the closing price of $0.145as of 23^rdJuly 2021.

Daily Technical Chart – POL

Source: REFINITIV

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