IGO Limited (ASX: IGO)

IGO. is engaged in mining and development of operating assets focused on metals to enable clean energy in Australia. The primary metals for exploration include Nickel and Copper projects located in Western Australia, Northern Territory, South Australia, and Greenland. The was incorporated in 2020 and is based in Perth, Australia. The company's current market capitalization is $6.69 billion, with the current price of $8.930 per share.

Fundamental Highlights- On 19 July 2021 the company released an update on its project at Red Bull, Fraser Range JV, revealing the two new conductors lying at the 30kms South project. Both the conductors are perceived to contain nickel and copper sulphide targets. Further, the positive update from the Orion Chonolith suggests that mineralization of nickel is underlying post evaluation and assay results. The company earned 70% interest in the Fraser Range Joint Venture tenements by fulfilling its $5 million exploration expenditure milestone. The S&P/ASX 100 Index recently added the stock to its Index, enabling it to be tracked by varied investors. For Q3FY21, the revenues and other income slipped by 21% QoQ to $185.7 million, on account of lower nickel and copper sales. The slippage in revenues impacted the EBITDA that decreased by 23% QoQ to 92.7 million. The cash balance increased to ~$1.30 billion in Q3FY21 from $1.19 billion in Q2FY21.

Technical Analysis- The stock moved in a gradual uptrend forming higher highs and higher lows with slight hiccups in between, maintaining a substantial uptrend until it reported the lifetime high of $9.06 and trading at those levels only. The relative strength index is currently showing 71.74, which is in the upper end of the zone, indicating further upside movement to the stock from current levels. The 21 Days Simple Moving Average is currently placed below the stock price at $8.257, suggesting the bullish momentum intact for the stock in the near term. For the stock to maintain the current trend, support levels of $8.06 levels should be respected. Since the stock is trading at lifetime highs, the previous lifetime high was $9.06, which can be considered the resistance on the closing basis for the stock to gain a further bullish stance.

Declining revenues and EBITDA, volatile commodities prices, and expensive valuations at current levels. We suggest investors to ‘Avoid’ the stock at the closing price of $8.930, up by ~1.018%, as of 26^th July 2021.

Daily Technical Chart – IGO

Source: REFINITIV

Apollo Minerals Limited (ASX: AON)

AON is engaged in manufacturing of aluminium oxide powder, zinc oxide dispersions, and powder for use in the personal care sector in Australia, the United States, Canada, Europe, and other geographies. The company was incorporated in 1997 and is based in Rocklea, Australia. The company's current market capitalization is $34.76 million, with the current price of $0.09 per share.

Fundamental Highlights- As per the release dated 21 July 2021, the company announced an update on the discovery of zinc and lead on its Kroussou project, on the drilling of 11 diamond hold as the Dikaki Prospect, confirming the high-grade zinc and lead mineralization within 40m of the surface. This project was funded by issuing ordinary shares worth $3.25 million to institutional and sophisticated investors across various nations covering Australia, UK, and the USA. As of 29 April 2021, the company had cash reserve of ~$3.95 million. Meanwhile, the company expects strong news outflow from the 2021 work program at the Kroussou project.

Technical Analysis- The stock moved in a gradual uptrend forming higher highs and higher lows, printing the recent highs of $0.14, only to correct from there. Since then, the stock was in a downtrend and hovering near the crucial support of $0.083. The relative strength index is currently showing 49.79, 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 placed in tangent with the stock at $0.089, which failed to give any trend confirmation from current levels. The stock witnessed the spike off late and closed below the resistance of $0.109, where the selling pressure emerged, shoving the prices down to near the support levels.

Lack of operating cash revenues in Q3 FY21, volatile commodity prices, and declining stock prices suggest that investors to ‘Avoid’ the stock at the closing price of $0.090, as of 26^th July 2021.

Daily Technical Chart – AON

Source: REFINITIV

Altech Chemicals Ltd. - (ASX: ATC)

ATC was incorporated in 2007 and is based in Subiaco, Australia. The company is engaged in the production of high purity alumina which is used in the production of synthetic sapphire. It holds 100% interest in a kaolin deposit located in the Meckering, Western Australia. The company's current market capitalization is $65.61 million, with the current price of $0.053 per share.

Fundamental Highlights- The company recently announced the patent submission for the method of Amulina coating of battery materials which will be used in the lithium-ion battery anode. This new methodology will act as an artificial solid electrolyte interface to reduce lithium-ion losses during usage. The company did not receive any cash receipts from customers for the straight 3 quarters ending on 31^st March 2021.  The cash outflows from operations increased to were $1.15 million in 3Q FY21 from $1.01 million in the preceding quarter. The cash balance increased to $5.73 million as compared to $5.10 million as of 31 December 2020. For the 1H FY21, the company turned to a net profit of $4.05 million in 1H FY21 as compared to the loss of $2.25 million in 1H FY20, which was a result of ‘other income’ of $7.94 million.

Technical Analysis- The stock exhibits extreme volatility in nature, witnessing steep rise and sharp falls at frequent intervals. Relative Strength Index is currently showing the reading of 64.88 which is indicating a furthermore upside from current levels, but hard to sustain for the long term. The 21 Days Simple Moving Average is pointing below the stock price at $0.048, indicating a more bullish momentum for the short term. The support is placed at $0.036, which is at an extreme level, keeping the volatility of stock into consideration. For the stock to gain upward momentum, the resistance of $0.065 should be taken off with strong volumes for the trend to sustain in the near term.

Lack of operating cash revenues in 3Q FY21, accumulating losses (excluding other income sources), and volatile stock prices, suggest that investors ‘Avoid’ the stock at the closing price of $0.053, up by ~3.92%, as of 26^th July 2021.

Daily Technical Chart – ATC

Source: REFINITIV

Wellfully Limited - (ASX: WFL)

WFL was incorporated in 2004 and is based in Leederville, Australia. The company is engaged in the development and enhancement of transdermal polymer technologies for use in the pharmaceutical, cosmetic and skincare, and consumer healthcare sectors in Australia. The company's current market capitalization is $15.31 million, with the current price of $0.074 per share.

Fundamental Highlights- The company recently announced the partnership with BORK, a brand retailer in Russia, to generate $2 million in revenues along with the initial order of $0.70 million in execution. Another update coming from the company is related to the Dongguan Facility on its phase 2 competition within a record time of less than 3 months, which will have hair and skinned pre-assembly supply chain operations along with various other products. The company recorded a decline in cash receipts from customers to $42k in 3Q FY21 as compared to $0.144 million in 2Q FY21. The cash and cash equivalents increased in 3Q FY21 to $1.45 million from the cash balance of $0.98 million in 2Q FY21. The losses for the 1H FY21 increased by 177% to $3.27 million as compared on PCP basis.

Technical Analysis- The stock has been in a continuous downtrend forming lower highs and lower lows and printed the lifetime lof of $0.047 and found support from those levels. The prices inched higher from the support and gradually trying to recoup losses, where the Relative Strength Index is currently showing the reading of 74.52, which is in the upper end of the zone, hinting at further upside bias for the prices in the near term. The 21 Days Simple Moving Average is currently placed at $0.059 below the stock price, another bullish momentum pattern to continue from current levels the support of $0.060 and the resistance at $0.086.

Dip in cash receipts from customers, volatile commodity prices and declining stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.074, up by ~1.37%, as of 26^th July 2021.

Daily Technical Chart – WFL 

Source: REFINITIV

Biotron Limited - (ASX: BIT)

BIT was incorporated in 1999 and is based in North Ryde, Australia. The company is engaged in developing and commercializing small-molecule products to treat various viral diseases in Australia. The company also develops a portfolio of preclinical antiviral drugs. The company's current market capitalization is $43.51 million, with the current price of $0.058 per share.

Fundamental Highlights- The company recently announced the receipt of $1.41 million in Research & Development Tax Incentive refund for the financial year 2019/20. The proceeds will be utilized for the antiviral drug development program. The company did not receive any cash receipts from customers for the straight three quarters ending on 31^st March 2021.  The cash outflows from operations increased to $1.31 million in 3Q FY21 from $1.06 million in 2Q FY21. The cash balance decreased to $3.82 million in 3Q FY21 from $5.15 million in 2Q FY21.  It is worth mentioning, BIT reported a net loss of $2.39 million in 1H FY21, up by 15.74% in pcp.

Technical Analysis- The stock has been in a continuous downtrend forming lower highs and lower lows and printed the recent low of $0.046 and trying to regain grounds from here. The Relative Strength Index is currently showing a reading of 51.39, which is in the middle range of the zone, indicating no definite trend from the current prices. The 21 Days Simple Moving Average is currently placed at $0.059 around the stock price, further lacking any strong trend confirmation in the near term. The support is placed at $0.053, and the resistance is at $0.068.

Lack of operating cash revenues in 3Q FY21, accumulating losses, and falling stock prices, we suggest that investors ‘Avoid’ the stock at the closing price of $0.058, down by ~6.45%, as of 26^th July 2021.

Daily Technical Chart – BIT

Source: REFINITIV

ReadCloud Limited - (ASX: RCL)

RCL was incorporated in 2009 and is based in Brighton, Australia. The company is engaged in providing eBook solutions to secondary schools in Australia. Its eBook platform allows students and teachers to share notes, questions, videos, and Web links directly inside the ebooks and make comments and import third party content. The company's current market capitalization is $39.04 million, with the current price of $0.32 per share.

Fundamental Highlights- The company recently announced the acquisition of Ripponlea Institute Pty Ltd. (‘Ripponlea”), against the consideration of $1.8 million with a combination of cash and shares. Ripponlea generated sales revenue of $0.85 million and adjusted EBITDA of $0.4 million in FY20. The cash receipts from customers increased to $3.12 million in 3Q FY21 from $0.92 in 2Q FY21.  further, the cash outflows in 2Q FY21 of $0.33 turned to cash inflows in 3Q FY21 to $0.39. RCL posted loss for the 1H FY21 that stands at $1.05 million.

Technical Analysis- The stock experienced sharp correction and gradually entering into the range, eventually moving downwards. The Relative Strength Index is currently showing a reading of 34.26, which is in the lower end of the range, pointing to more downside movement reaming to the prices.  The 21 Days Simple Moving Average is placed above the stock price at $0.344, indicating further selling pressure on the prices from the current level. The support is placed at $0.285, and the resistance is at $0.44.

Considering the accumulating losses, falling stock prices with a narrow range, we suggest investors to 'Avoid’ the stock at the closing price of $0.320, down by ~3.03%, as of 26^th July 2021.

Daily Technical Chart – RCL

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 analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Disclosure: Altech Chemicals Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any related insights concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine do not hold interests in any of the securities or other financial products covered on the Kalkine website.