Brickworks Limited (ASX: BKW)

BKW is engaged in the manufacturing, sales and distribution of building products for the residential and commercial markets in Australia and internationally. Its principal product lines include bricks, masonry blocks, pavers, roof tiles, floor tiles, precast walling and flooring panels, fibre cement walling panels, and roof battens. The Company has a track record of paying dividend every year since its listing in 1962. The company's current market capitalization is $3.70 billion, with the current price of $24.25 per share.

Financial & Operational Highlights - On 9^th June 2021, the company released its trading update stating the revaluation profit within its Joint Venture Industrial Property Trust (“Property Trust”) with Brickwork’s share is expected to be ~$100 million, contributing towards the Underlying EBIT of $240-$260 million for the FY21, up from $129 million in the prior year. Further, the sales revenue in the first half of FY21 was $193 million, where 70% of the contribution is from the products targeted by the detached housing market and the rest coming from the low rise and high-rise apartments.  On the profitability counter, as stated by the company on the 26^th March update, the statutory NPAT for the H1FY21 ending on 31^st January 2021, was up by 22% YoY to $71 million and the interim dividend was increased by 5% to 21 cents from 20 cents for 31^st January 2021.

Technical Analysis- The stock showed an uptrend and reached the near-term highs of $25.64 and hovering at the same levels. The Relative Strength Index is showing the reading of 47.94 which is in the middle of the range, failing to give a concrete trend formation from current levels. The 21 Day Simple Moving Average is currently placed above the stock price at $24.766 directing the potential downside path for the stock. Keeping the volatility of the stock into consideration, the support is placed at $23.32 and the resistance can be found at $26.60 levels. Breaking either side of the range will give a clear picture of the trend formation.

Though the financials showed an improvement and the prices surged at record levels, making it expensive at current price levels., we suggest investors to 'Avoid’ the stock at the closing price of $24.25 per share, down by ~0.90%, as of 30^th July 2021.

Daily Technical Chart – BKW

Source: REFINITIV

KEY is involved in the acquisition and exploration of petroleum permits in Australia. It holds interests in exploration at Cooper Eromanga and North Perth Basins in Australia. The company was incorporated in 2006 and is based in West Perth, Australia. The company's current market capitalization is $5.90 million, with the current price of $0.003 per share.

Financial & Operational Highlights- On 29 July 2021, the company released its quarterly update ended 30 June 2021, where it stated that the readiness for the Bookara 3D Seismic Survey is on its way as the joint venture has been managed by the company with the survey area and design finalised in quarter ended 30 June 2021. The company is working with the regulators to complete the Sale and Purchase Agreement for its balance equity in EP 437 and L7 to Triangle Energy, signed on 28 January 2021. Meanwhile, the company started a review of its Cooper Eromanga Basin exploration portfolio in July 2021. The cash balance for the period ending on 30^th June 2021 was $46.0k. The available funds were enhanced by a loan fund of A$250.k of which $200.0k had been drawn at the end of the quarter.

Technical Analysis- The stock showed a continuous downtrend with a few upticks in the prices and heading towards the lows. The Relative Strength Index is currently showing a reading of 45.54, which is in the middle of the trading zone, indicative of a waiting period for further trend formation from current levels. The 21 Days Simple Move Average is placed near the stock prices at $0.0031, which is again signalling no action in the near term to long/ short from current price levels. The support is placed at $0.002 which can bring further buying interest among the investors, and the resistance is placed at $0.045.

Lower cash balances, volatile commodity prices and declining prices of the stocks, we suggest investors to ‘Hold’ the stock at the closing price of $0.003 per share, as of 30^th July 2021.

Daily Technical Chart – KEY

Source: REFINITIV

Moho Resources Limited - (ASX: MOH)

MOH is engaged in the exploration of mineral properties across Australia covering Gold and Nickel deposits as its primary focus. The company holds 100% interest in the M27/263 mining lease located in Kalgoorlie, Australia. The company was incorporated in 2012 and is based in Wembley, Australia.  The company's current market capitalization is $6.81 million, with the current price of $0.068 per share.

Financial & Operational Highlights – The recent update on the drilling was released on 28^th July 2021, stating the commencement of aircore drilling program at Tyrelles and Hodges, with the prospect of discovering gold mineralisation which was already identified at East Samson Dam. The property at East Sampson Dam (ESD), identified 264,600 tonnes at 2.5g/t Au for 21,600 ounces at 0.5g/t. On the financial front, the company announced on 31^st May 2021, it received $686k as a refundable tax offset for eligible Research & Development prospective projects. The cash balance stands at $1.14 million for the period ending 31^st March 2021.

Technical Analysis- The stock showed a continuous downtrend with a few upticks in the prices and heading towards the lows. The Relative Strength Index is currently showing a reading of 48.20, which is in the middle of the trading zone, indicative of a waiting period for further trend formation from current levels. The 21 Days Simple Move Average is placed slightly above the closing price of the stock at $0.069, indicating more downside reaming to the prices from these levels. The support is placed at $0.060 which can bring further buying interest among the investors, and the resistance is placed at $0.80.

Missing operating revenues, declining stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.068 per share, up by 3.03%, as of 30^th July 2021.

Daily Technical Chart – MOH

Source: REFINITIV

Province Resources Ltd (ASX: PRL)

PRL is engaged in the exploration and development of mineral properties focused on copper, gold, nickel, cobalt, vanadium. The company also holds 100% interest in the Pascalle Gold Project located in the Paterson Province. Province Resources Ltd was incorporated in 1993 and is based in Subiaco, Australia. The company's current market capitalization is $151.99 million, with the current price of $0.135 per share.

Financial & Operational Highlights - On 20^th May 2021, the company raised $18 million via equity, and the issue was oversubscribed, and the participants were approaching from ESG funds. The proceeds will raise the cash balance to $23.6 million and the proceeds will be used to advance both the scoping and feasibility studies at its HyEnergy ZERO CARBON HYDROGENTM Project and its mineral exploration portfolio.  On 27^th April 2021, the company announced the successful acquisition of the Industrial Minerals and Renewable Green Hydrogen Project, enabling the company to carry out multiple projects for salt, potash, and mineral sands, along with a renewable green hydrogen project. On the financial front, the company failed to receive any operating revenues for the full-year ending June 30, 2021 and recorded the cash outflows from operating activities of $0.71 million for the quarter period ending on 30^th June 2021.

Technical Analysis- The stock stacked up gradually and printed the recent highs of $0.25 and eventually corrected from there and moving in a narrow range around the support levels of $0.15. The Relative Strength Index is currently showing a reading of 45.04, which is in the middle of the trading zone, indicative of a waiting period for further trend formation from current levels. The 21 Days Simple Move Average is placed near the stock prices at $0.1417, which is again signalling no action in the near term to long/ short from current price levels. For the prices to resume an uptrend, the resistance of $0.185 needs to be pierced.

Missing operating revenues, volatile commodity prices and declining stock prices and narrow range-bound movement, we suggest that investors to ‘Avoid’ the stock at the closing price of $0.135, as of 30^th July 2021.

Daily Technical Chart – PRL

Source: REFINITIV

SECOS Group Limited - (ASX: SES)

SES is engaged in the manufacturing and distribution of sustainable packaging materials in Oceanic, Asia, the Americas, Europe, and Africa. The company provides biodegradable resins, packaging products, and cast films to blue-chip companies. The company is headquartered in Mount Waverley, Australia, with a current market capitalization is $160.77 million, with the current price of $0.30 per share.

Financial & Operational Highlights - As per the quarterly activities report, released on 7^th July 2021, the company is investing $2 million over the three years to develop a top-notch Research & Development in Australia to support the rising demand for bio-based resin, film and products. As of the 15^th of June 2021, the company shared the update on the sales, Woolworths increases SECOS certified compostable bin liners from initial 88 stores to 203 stores. On the financial front, the company clocked the gain of 24% in its quarterly cash receipts to the total of ~$8.9 million for the quarter ending 30^th June 2021 as compared to the previous quarter receipts of ~$7.1 million on 31^st March 2021.  The operational efficiency is increased which is very much evident from the reducing operating cash outflows to $0.89 million by 30^th June 2021 which is lower than the previous quarter of $1.64 million on 31^st March 2021. Further, the cash balance for a similar period stands at $11.3 million with no debt on its books. Also, the management expects to report a significant improvement in its full-year FY21 profit compared to FY20.

Technical Analysis- The stock showed an uptrend and reached the near-term highs of $0.35 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 50.44 which is in the middle of the range, failing to give a concrete trend formation from current levels. The 21 Day Simple Moving Average is currently placed above the stock price at $0.308 directing the potential downside path for the stock. Keeping the volatility of the stock into consideration, the support is placed at $0.245 and the resistance can be found at $0.350 levels. Breaking either side of the range will give a clear picture of the trend formation.

Considering the negative operating cash flows, distorting supply chains and logistical challenges, and volatile stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.30 per share, as of 30^th July 2021.

Daily Technical Chart – SES

Source: REFINITIV

Southern Gold Limited (ASX: SAU)

SAU is involved in the exploration and production of gold and silver deposits in South Korea. The various key projects are the Beopseongpo gold project, Aphae gold project, Deokon gold-silver project, Weolyu gold-silver project, and Neungju gold project located in South Korea. Southern Gold Limited was founded in 2004 and is based in Stepney, Australia. The company's current market capitalization is $13.86 million, with the current price of $0.065 per share.

Financial & Operational Highlights- On 29 June 2021, the company announced the fine prints related to the sale of Southern Gold’s Gubong and Kpchang Joint Venture interests for $13.2 million, in form of the share issue. on the mining front updated on 18^th June 2021, the company commenced drilling as Dekon project (100% SAU) to target the probability of underlying gold mineralisation there. Another soil sampling programme was completed with assays at Deam Project (SAU 100%), yielding +3.56g/t AU gold results to an extensive stroke length of mineralisation. On the financial front, the company failed to receive any operating revenues for the full-year ending 30^th June 2021 and recorded the cash outflows from operating activities of $0.67 million for the quarter period. The cash balanced decreased to $8.0 million as of 30^th June 2021, as compared to $9.02 million in the quarter ending on 31^st March 2021.

Technical Analysis- The stock showed a continuous downtrend with a few upticks in the prices and heading towards the lows. Currently, the stock is in the congestion zone and which gives a strong probability of the breakout in the near term. The Relative Strength Index is currently showing a reading of 39.49, which is in the middle of the trading zone, indicative of a waiting period for further trend formation from current levels. The 21 Days Simple Move Average is placed slightly above the closing price of the stock at $0.069, indicating more downside reaming to the prices from these levels. The support is placed at $0.061 which can bring further buying interest among the investors, and the resistance is placed at $0.80.

Recent positive updates on the drilling initiatives, lower levels of the stocks forming congestion, we suggest investors to ‘Hold’ the stock at the closing price of $0.065 per share, as of 30^th July 2021.

Daily Technical Chart – SAU

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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