Audinate Group Limited (ASX: AD8)

AD8 is involved in developing and commercialization of audiovisual networking solutions worldwide. The major offerings are Dante Controller, a software application that enables users to route audio and configure devices on a Dante network; Dante Virtual Soundcard, which turns the computer into a Dante-powered workstation and integrating the PC or Mac with Dante audio devices on the user network. The company's current market capitalization is $718.50 million, with the current price of $9.85 per share.

Financial & Operational Highlights- On 9 July 2021, the company released its trading update where it has stated that unaudited US Dollar revenue stood at US$2.5 million for the FY21, up by 23% from US$20.4 million in FY20. This was driven by 74% gain in quarterly revenue in US$. Since the company is exposed to the currency risks, the similar revenues when translated to the Australian Dollar reflects a modest 10% increase to A$33.4 million in FY21 from A$30.3 million in FY20, depicting the strengthening the Australian Dollar against the US Dollar. On 7^th July 2021, the company stated that it will release of its FY21 results on 23^rd August 2021.. For the quarter ended 31^st March 2021, the company clocked the US$ revenue growth of 31% YoY to US$7.0 million  . The growth was majorly contributed by the launch of Bluetooth and USB-C AVIO adapters along with the increase in orders resulting from the rising global supply chain disruptions. Meanwhile, the company turned from profit in H1FY20 of $0.34 million to a net loss of $1.21 million in H1FY21.

Technical Analysis- The stock showed a continuous uptrend with drawdowns in between only to form a strong base and continuing uptrend from there. The Relative Strength Index is currently showing a reading of 65.10, which is inching closer towards the north, indicating more upside remaining to the stock prices. The 21 Days Simple Moving Average is placed as a shadow of the stock price at $9.33, which is below the stock price, suggesting the bullish momentum for the stock price. The support to keep the trend intact is placed between $9.18 and $8.45 zone, and the resistance is at the lifetime high of $10.29 levels, breaching that, will take off the stock to fresh new highs.

Accumulating losses, high currency conversion risks, company fundamentals and financials decupling from the lifetime high stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $9.85 per share, up by 4.564%, as of 29^th July 2021.

Daily Technical Chart – AD8

Source: REFINITIV

Parkway Minerals NL (ASX: PWN)

PWN is into the exploration of phosphate and potash mineral properties in Australia and Germany. The company holds interests in the Karinga Lakes Potash Project, located within the Central Australian Groundwater Discharge Zone; and the New Mexico Lithium project in New Mexico, the United States. Parkway Minerals NL was incorporated in 2010 and is based in West Perth, Australia. The company's current market capitalization is $24.24 million, with the current price of $0.011 per share.

Financial & Operational Highlights - On 22 July 2021, the company released its quarterly activity and cash flow report, where it announced the successful development of the industrial water treatment business. In this release it also stated that Parkway Process Solutions (PPS) has received a 2-stage contract to design a wastewater treatment plant. On the financial front, the cash balance stood at $7.5 million as of 30^th June 2021. The company witnessed large outflows resulting from the establishment of PPS, which includes the inventory for conducting its operations without any disruptions. The total revenues for the quarter ended 30 June 2021 stood at $0.26 million. As per the official announcement on 6^th July, the company suspended the commencement of trading of its Partly Paid shares. During the H1FY21, the company raised $5.25 million from a group of institutional investors to fund the business operations including the commercialization of the technology portfolio and taking strategic growth initiatives.

Technical Analysis- The stock spiked recently printed the highs of $0.032 and corrected from there and forming the lower highs and lower lows to trade in a narrow range. The relative strength index is showing a reading of 46.77, which is the middle range of the zone, indicating no clear continuation from current price marks. The 21 Day Simple Moving Average is placed in tandem closely with the stock price and placed at $0.0120 which lacks the conviction for the strong trend formation or continuation from the current levels. The support is placed at $0.008 and the resistance is at $0.019 to cap the stock positive gains beyond those levels.

Increasing cash outflows, declining stock prices and narrow range-bound movement approaching towards the lifetime lows, we suggest that investors to ‘Avoid’ the stock at the closing price of $0.0115, up by ~4.54%, as of 28^th July 2021.

Daily Technical Chart – PWN

Source: REFINITIV

Iron Road Limited - (ASX: IRD)

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IRD is engaged in the exploration and evaluation of iron ore properties in Australia. It's 100% owned principal project is the Central Eyre iron project located on the Eyre Peninsula of South Australia. The IRD was incorporated in 2007 and is based in Adelaide, Australia, and operates as a Sentient Executive GP IV subsidiary, Limited. The company's current market capitalization is $190.14 million, with the current price of $0.240 per share.

Financial & Operational Highlights - As per the quarterly activies report, released on 28 July 2021, the company signed a Joint Development Agreement with other Eyre Peninsula Co-operative Bulk Handling (EPCBH) and Macquarie Capital (Macquarie), to facilitate services across Cape Hardy port, a multi-commodity lead port. In this quarterly report ended 30 June 2021, the company raised $4.25 million through share placement and $0.84 million through share perchase plan. The cash and equivalents as of 30 June 2021 stood at $4.79 million.

Technical Analysis- The stock showed an uptrend and reached the near term highs of $0.40 and corrected from there to gain further and showing a similar pattern of correction, implying the high volatility of the stock. the relative strength index is showing the reading of 41.77 which is in the middle of the range, failing to give a concrete trend formation from current levels. The 21 days Simple Moving  Average is currently placed above the stock price at $0.252 directing the potential downside path for the stock. Keeping the volatility of the stock into consideration, the support is placed at  $0.18 and the resistance can be found at $0.31 levels. Breaking either side of the range will give a clear picture of the trend formation.

Considering the lost operating revenues, distorting supply chains and logistical challenges, and volatile stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.240 per share, as of 29^th July 2021.

Daily Technical Chart – IRD

Source: REFINITIV

Emerald Resources NL (ASX: EMR)

EMR is engaged in the exploration and development of gold properties in Cambodia, Australia, and the United States. It primarily explores for and develops Cambodian gold projects comprising a combination of 100% owned granted licenses, applications, and earn-in & joint venture agreements. The company's current market capitalization is $463.85 million, with the current price of $0.90 per share.

Financial & Operational Highlights- On 24^th June 2021, the company announced the results of the operation conducted at its Okvau Gold Mine, in the form of two Gold bars with a combined weight of 8.6 kgs. From a similar site, approximately 245,000t of ore on the ROM was extracted and the same was utilised for the commissioning of the SAG Mill. On the financial front, the company did not record any cash flows for the last three quarters ending on 31^st March 2021 and the cash outflows from operations amounted to $1.25 million. The cash and equivalents decreased to $47.40 million in 3Q FY21 from $76.78 million in 2Q FY21.

Technical Analysis- The stock showed a continuous uptrend with drawdowns in between only to form a strong base and continuing uptrend from there. The Relative Strength Index is currently showing the reading of 49.08, which is hovering in the middle range of the zone, indicating no clear trend formation from current levels. The 21 Days Simple Moving Average is placed as a shadow of the stock price at $0.888, which is below the stock price, suggesting the bullish momentum to the stock price from current levels. The support to keep the trend intact is placed between $0.825 and $8.45 zone, and the resistance is at the lifetime high of $1.025 levels, breaching that, will take off the stock to fresh new highs.

Lack of operating revenues, volatile commodities prices, declining stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.90 per share, as of 29^th July 2021.

Daily Technical Chart – EMR

Source: REFINITIV

Argent Minerals Limited (ASX: ARD)

ARD is into the exploration, extraction and marketing of precious and base metal properties in Australia, focussing on gold, silver, copper, zinc, and lead deposits. Its flagship property is the Kempfield Polymetallic project located in New South Wales, Australia. Argent Minerals Limited was incorporated in 2007 and is based in West Perth, Australia. The company's current market capitalization is $26.30 million, with the current price of $0.030 per share.

Financial & Operational Highlights - The recent drilling updates covering 16 RC holes, totalling 1,913m, with a high probability of significant gold mineralisation lying underneath.  The first 7 of the 8 RC hols assay results came positive, and other results are awaited with the remaining 5 holes are await drilling. As of 19^th July 2021 updates, the company announced that MinRex Resources Ltd. (ASX: MRR) exercised its options to acquire Argent’s farm-in rights to earn up to a 90%  interest in the exploration for the payment of $10,000 a non-refundable option fee. On the financial front, the company did not record any cash flows for the last three quarters ending on 31^st March 2021 and the cash outflows from operations amounted to $0.57 million. The cash and equivalents decreased to $4.6 million in 3Q FY21 from $5.12 million in 2Q FY21.

Technical Analysis- The stock spiked recently printing the highs of $0.092 and corrected from there and forming the lower highs and lower lows to trade in a narrow range. The relative strength index is showing a reading of 27.15, which is the lower end of the range of the zone, indicating further more downside remaining to the stock price. The 21 Day Simple Moving Average is placed above the closing price of the stock at $0.038, which again depicts the selling pressure that continued the stock prices, pushing the stock to the South. The support is placed at $0.024 and the resistance is at $0.037 to cap the stocks positive gains beyond those levels.

Missing operating revenues, negative operating cash flows, volatile gold prices, declining stock prices approaching towards the lifetime lows, we suggest that investors to ‘Avoid’ the stock at the closing price of $0.030 per share, as of 29^th July 2021.

Daily Technical Chart – ARD

Source: REFINITIV

Cann Group Limited - (ASX: CAN)

CAN is engaged in the research and development, cultivation and production, manufacturing, clinical evaluation, processing, packaging, and distribution and supply of medicinal cannabis for various diseases and medical conditions in Australia. The company was incorporated in 2014 and is based in Bundoora, Australia, with a current market capitalization is $93.16 million, with the current price of $0.31 per share.

Financial & Operational Highlights - The company recently announced that it had received $1.2 million after the court proceedings to recover funds subject to the cybersecurity accident on February 8, 2021. It had recorded YTD cash receipts of $1.378 million from customers (full-year ending June 2021). Cash balance stood at $3.15 million as of June 2021 as compared to $16.4 million in the preceding quarter. The company is expecting sales to show traction reflecting expanded distribution in Australia and in international markets. The acquisition of Satipharma to drive the UK market.

Technical Analysis- The stock showed some movement in the past few days, giving a consolidation with a high probability of forming the congestion at current levels which will lead to a break out eventually. The Relative Strength Index is currently showing the reading of 30.81, heading towards the oversold territory, giving a probability for a pullback on the grounds of short covering. The 21 Days Simple Moving Average is positioned at $0.377 above the stock price, hinting at more downside on the chart. The support is placed at $0.285, from where we can witness bargain hunting, whereas the resistance is placed at $0.4050 levels.

Considering the niche segment, positive outlook on sales, and lifetime low of stock prices gives the investor a comfort to accumulate at current levels. Therefore, we suggest 'Speculative Buy’ on the stock at the closing price of $0.310, down by ~7.46%, as of 29^th July 2021.

Daily Technical Chart – CAN

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.

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