Domino's Pizza Enterprises Limited  (ASX: DMP)

DMP was incorporated in 1983 and is based in Brisbane, Australia. The company holds franchise rights for Domino's brand and network in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark. The company's current market capitalization is $10.48 billion, with the current price of $117.70 per share.

Fundamental Highlights- The company recently announced the acquisition of PizzaVest Company Limited, which is the second-largest pizza chain in Taiwan, having 157 stores operating efficiently. The acquisition amounts to $79 million on a cash basis, and the synergies will enhance the company's financial performance for FY22. The Australia/ New Zealand sales grew at 5.7% to $648.0 million, along with an increase in 13 more new stores, with EBIT growth of 9.8% at $63.7 million for 1H FY21.

Technical Analysis- The stock showed a strong uptrend past few months printing the lifetime high of $122.65 and hovering near those levels. The Relative Strength Index shows 52.62, which is in the upper end of the zone, indicating a strong uptrend from current levels. The 21 Days Simple Moving Average is hovering closer to the stock prices, showing $117.70, failing to indicate any clear trend in the near term. The support level of $108.45 needs to be respected for the stock to hold the current uptrend. The resistance on the charts at the time of lifetime high of the stock is not viable on the charts.

Substantial acquisitions from the cash balances, rising revenues, and EBIT growth rates, and elevated stock prices make the stock expensive at current levels. Accordingly, we suggest investors to 'Avoid' the stock at the closing price of $117.70, down by 2.83%, as of 20^th July 2021.

Daily Technical Chart – DMP

Source: REFINITIV

FYI Resources Limited - (ASX: FYI)

FYI was incorporated in 1993 and is based in Cottesloe, Australia. The company explores and develops mineral properties in Southeast Asia and Australia. It holds interest in the Cadoux kaolin deposit, a high purity alumina project in Western Australia. The company's current market capitalization is $171.10 million, with the current price of $0.53 per share.

Fundamental Highlights- The company recently adopted the Environmental, Social, and Governance (ESG) framework created by the World Economic Forum, enabling the company to ensure both shareholder and long-term sustainable benefits. From the Definitive feasibility study (DFS) of the High Purity Aluminia, the uptick in the Net Present Value (NPV) was recorded to $1.01 billion.  The company did not receive any cash receipts from customers for the past 3 quarters ending on 31^st March 2021. The cash outflows from operations were increased by five folds to $0.55 million on 31^st March 2021 compared to the outflows of $89k million on 31^st December 2021. The cash and cash equivalents were increased to $9.20 million on 31^st March 2021 compared to the $6.82 million on 31^st December 2020.  

Technical Analysis- The stock showcase a strong uptrend past few months and recorded the lifetime high of $0.73 and correct from there. The support is currently placed at $0.44, from where the buying can emerge to keep the trend intact. The Relative Strength Index shows 45.79, 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 hovering near the stock's closing prices at $0.53, failing to indicate any clear trend in the near term. The resistance is placed at $0.60, which needs to take off the charts for the stock to resume an uptrend.

Lack of operating revenues, rising cash outflows, and elevated stock prices declining, we suggest investors to ‘Avoid’ the stock at the closing price of $0.53, up by 2.91%, as of 21^st July 2021.

Daily Technical Chart – FYI

Source: REFINITIV 

Northern Minerals Limited - (ASX: NTU)

NTU was incorporated in 2006 and is based in West Perth, Australia. The company is engaged in the exploration and evaluation of rare earth minerals in Australia covering dysprosium. Its flagship project is the 100% owned Browns Range project located to the southeast of Halls Creek in northern Western Australia. The company's current market capitalization is $169.61 million, with the current price of $0.035 per share.

Fundamental Highlights- The company recently announced the installation and commissioning of the

ore sorting system, which will help to carry out further Research & Development related projects to ascertain the technical and economic benefits of the ore sorter circuit. To carry out the operations smoothly and fund upcoming projects, the company raise $20 million through private placement and received a good response for the same. S&P Dow Jones Indices announces to add NTU to its S&P/ ASX Indices after meeting the entry requirements, enabling the stock to be widely tracked by investors. The company did not receive any cash receipts from customers for the past 2 quarters ending on 31^st March 2021. The cash from operations turned to outflows in 3Q FY21 to $3.95 million as compared to the inflows of $3.0 million in 2Q FY21. The cash and cash equivalents were increased to $24.37 million on 31^st March 2021 than the $10.58 million on 31^st December 2020.  

Technical Analysis- The stock gave a breakout to an inch higher last year and witnessed a sharp fall from $0.070, eroding 50% of its market capitalization towards $0.035. The relative strength index shows a reading of 48.79, which is in the middle of the range, lacking clarity for the other trend in either direction from the current prices. The 21 Days Simple Moving Average is currently placed closer to the stock price at $0.035, giving an unambiguous signal for the trend formation in the near term. The support is currently paced at $0.030, and resistance is at $0.045.

Lack of operating revenues, increasing cash outflows from operations, range-bound stock prices, we suggest investors to “Avoid” the stock at the closing price of $0.035, as of 21st^h July 2021.

Daily Technical Chart – NTU

Source: REFINITIV

CANN Group Limited - (ASX: CAN)

CAN was incorporated in 2014 and is based in Bundoora, Australia. The company is engaged in the research and development, cultivation and production, manufacturing, clinical evaluation, processing, packaging, distribution, and supply of medicinal cannabis for various diseases and medical conditions in Australia. The company's current market capitalization is $104.21 million, with the current price of $0.38 per share.

Fundamental Highlights- the company recently announced that it had received $1.2 million after the court proceedings to recover funds subject to the cybersecurity accident in February 2021. It had recorded the YTD revenues of $3.2 million (up to April 2021-end). During the half-year period for FY21, CAN posted a 35.5% growth in revenues reaching $1.10 million as compared to the last year. The loss for a similar period increased by 12.2% to $9.39 million for 1H FY21. The cash balance stood at $27.7 million as of 31^st December 2020.

Technical Analysis- The stock is in the downtrend forming lower highs and lower lows and hovering near the lifetime lows and touched this ranging and bounced back eventually. The relative strength index is currently showing 43.52, which is again in the middle of the zone, hinting at a directionless trading pattern. The 21 Days Simple Moving Average is currently moving in proximity with the stock prices at $0.386, not directing any strong trend bias in the near future. The support is at $0.295 and the resistance at $0.455.

Considering the niche segment, increasing revenues and lifetime low of stock prices gives the investor a comfort to hold the stock at current levels. Therefore, we suggest investors to 'Hold’ the stock at the closing price of $0.38, up by 1.33%, as of 21^st July 2021.

Daily Technical Chart – CAN

Source: REFINITIV

Food Revolution Group Limited - (ASX: FOD)

FOD was incorporated in 2011 and is based in Mill Park, Australia. The company is engaged in the manufacturing and sales of functional juices, fibers, infused fruits and waters, and fruit waters under The Original Juice Co, Juice Lab, and Eridani brands. The company's current market capitalization is $26.50 million, with the current price of $0.029 per share.

Fundamental Highlights- the company recently secured financial backing covering all the funding requirements for the next 5 years from NAB. The latest product offering of Juice Lab “Wellness Shots” is expected to be a breakthrough in Australia’s $650 million Health And Wellness Market. Further to support its operations, the company secured $3 million from its two strategic global institutions through the equity stake sale. The cash from operations turned to outflows in 3Q FY21 to $0.71 million as compared to the inflows of $0.16 million in 2Q FY21. The cash and cash equivalents were increased to $3.14 million on 31^st March 2021 compared to the $2.93 million on 31^st December 2020. The company turned to the net profit in 1H FY21 to $32k as compared to the net loss of $1.78 million in 1H FY20.

Technical Analysis-The stock is in the downtrend forming lower highs and lower lows and hovering at the lifetime lows around $0.029 levels, which is also the support range for the stock. The prices bounced from these levels in past instances. The Relative Strength Index shows 51.35, which is at the middle range, lacking any strong trend bias in the near term. The 21 Days Simple moving average is placed in tandem with the stock closing price at $0.028, depicting directionless movement in the near term. The stock is minimizing the daily range of its high and low and holding the support level, which on the eve of any sharp upside can face the resistance of $0.045.

Launch of new products, financial backing and fundraising, and low lifetime levels of the stock, we suggest that investors “Hold” the stock at the closing price of $0.029, up by 3.57%, as of 21st July 2021.

Daily Technical Chart – FOD

Source: REFINITIV

BrainChip Holdings Ltd.  (ASX: BRN)

BRN was incorporated in 2011 and is based in Sydney, Australia. The company is developing software and hardware-accelerated solutions for artificial intelligence (AI) and machine learning applications in North America, Europe, the Middle East, and Asia. The company's current market capitalization is $763.47 million, with the current price of $0.46 per share.

Fundamental Highlights- The company was recently added by S&P ow Jones Indices to its S&P/ ASX Indices, enabling the stock to be widely tracked by the investors. The cash receipts from the customers grew tremendously to US $1.12 million by 31^st March 2021 compared to the US $36k for the quarter ending on 31^st December 2020. The company posted an increase in the cash balance from US $19.13 million on 31^st December 2020 to US $19.99 million on 31^st March 2021.

Technical Analysis- The stock gave a breakout in the year-end of 2020 and recorded a lifetime high of $0.97. Since then, the prices are moving in a range-bound trend. The Relative Strength Index is 36.13, which is towards the end of the lower zone. The 21 Days Simple Moving Average is $0.489, which is very closely placed towards closing the stock price, giving ambiguous trading bias in the near term. The support is currently placed at $0.405, and the resistance is at $0.55.

With rising cash receipts from the customers and stable stock prices, we suggest investors 'Hold' the stock at the closing price of $0.46, as of 20^th July 2021.

Daily Technical Chart – BRN

Source: REFINITIV

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