Senex Energy Limited (ASX: SXY)

SXY is engaged in the exploration, development, and production of oil and gas resources in Australia. The Company operates through a single segment Surat Basin along with Cooper-Eromanga Basin located in South Australia. It provides gas to the industry that supports local communities, manufacturing, jobs and cleaner energy. The company was incorporated in 1980 and headquartered in Brisbane, Australia, with a current market capitalization of $577.90 million at the current $3.07 per share price.

Financial & Operational Highlights - On 22^nd July 2021, the company signed a new long term gas sales with Adbri Limited (Adbri, ASX: ABC) for supplying 11 petajoules (PJ) of natural gas to support Adbri’s South Australian manufacturing operation to 2030. The pricing for the contract is fixed as per the current market levels.  As of 30^th June 2021, the company shared its quarterly results, stating the revenues from continuing operations of $32.5 million which were declined by 2% on a quarter-on-quarter basis, further impacted positively by the average realised Australian Dollar gas price for the portfolio increased to 1% to $6.9/GJ compared to the 3Q FY21 of $6.8/GJ. Further, the cash reserves declined by 9% to $101 million for the period ending 30^th June 21, as compared to the $111.0 million of the previous quarter ending on 31^st March 21, with the unchanged debt levels in its books. The company boosted its capital expenditure by 1173% to $0.9 million based on quarter on the quarter comparison.

Technical Analysis- The stock showed an uptrend and reached the near-term highs of $3.64, to corrected from there forming lower lows and lower highs. The Relative Strength Index is showing a reading of 33.97 which is at the lower end of the range, confirming the current downward movement of the stock from current levels. The 21 Day Simple Moving Average is currently hovering above the stock price at $3.33, indicating a strong downward bias to the stock price taking it to the Soth. Keeping the volatility of the stock into consideration, the support is placed at $2.87 and the resistance at $3.63 levels. Breaking either side of the range will give a clear picture of the trend formation.

Improving financial performance, decoupling with the drowning stock prices gives uncertainty to the investment thesis, we suggest investors to 'Avoid’ the stock at the closing price of $3.07 per share, down by ~2.23%, as of 3^rd  August 2021.

Daily Technical Chart – SXY

Source: REFINITIV

Roolife Group Limited (ASX: RLG)

RLG is engaged in providing fully integrated eCommerce, digital marketing and customer acquisition services. It provides personalised real-time, targeted marketing solutions, and is focused on driving sales in Australia and China. The Company’s online e-Commerce marketplace assists businesses to sell directly to Chinese consumers and accept payment via the Wechat and Alipay mobile payments platforms. The company was incorporated in 2019 and headquartered in Pert, Australia, with a current market capitalization of $19.61 million at the current $0.027 per share price.

Financial & Operational Highlights - On 6^th July 2021, the company released the update of securing a $1.7 million investment from the strategic investor, Mr Daniel Love, to use the proceeds for carrying out its sales and expansionary projects. Off late, the company launched its flagship product, Kombucha Brand in China, across Alibaba’s Tmall and Alipay Platforms, to capture the maximum possible traction, over a three-year contract targeting $5 million in revenues. On 21stst July, the company released its quarterly updates, stating the growth in cash receipts to $5.5 million in 4Q FY21, along what the net positive cash flows of $1.35 million for the period ending on 3^rd June 2021. The cash balance stood at $3.8 million which was increased post fundraising from its inventor, solidifying its balance sheet.

Technical Analysis- The stock is moving in a wide range bound manner, giving spikes at odd times, and later cooling off by sharp sell-off. The relative strength index at 44.90, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side. The 21 days simple moving average is hovering close to the stock price at $0.026, indicating no strong trend formation from current levels. For the prices to prohibit from diving into the bear territory, the support of $0.022 should be held firmly. Similarly, for the prices to regain the uptrend, a resistance of $0.034 needs to be taken off with strong volumes.

An increase in operating revenues and cash balances, volatile ad range bond stock prices gives the level of un-comfort to the investors to get into the stock, hence we suggest investors to ‘Avoid’ the stock at the closing price of $0.027 per share, down by 10%, as of 3^rd August 2021.

Daily Technical Chart – RLG

Source: REFINITIV

Amaero International Limited (ASX: 3DA)

3DA is an Australia-based company engaged in research, development, manufacture and sales of laser-based metal additive goods. The Company manufactures components for a range of global companies, and small and medium enterprises (SME) in North America, Europe, Asia and Australia. It serves the aviation defence and space sectors, as well as the tool and dies industries. The company was incorporated in 2013 and headquartered in Notting Hill, Australia, with a current market capitalization of $115.15 million at the current $0.56 per share price.

Financial & Operational Highlights - On 28^th July 2021, the company announced the Head of the agreement to be signed soon for the contract negotiations commence during 1H FY22 instead of 1^st half of the calendar year 2022, sated on June 21, quarterly updates. Further, on 5^th July 21, the company announced to construct the worlds most advanced titanium allow manufacturing powder plant costing $8 million over 18 months, will convert the titanium alloy bar stocks into powder for 3D printing at half the cost of current global prices. On 27^th Jul21, the company released its quarterly update, stating the increase in cash receipts from customers to $0.21 million on June 21, from $90k on March 21. The cash balance for the 4Q FY21 ending on 30^th June 21 was $11.47 million and the company stated the losses for 1H FY21 ending on 31^st December 20, of $2.81 million.

Technical Analysis- The stock showed a strong uptrend and printed the lifetime hights of $0.835, to correct from there and moving in a range-bound manner. The Relative Strength Index is currently showing a reading of 46.005, which is in the middle range of the zone, indicative of no strong trend formation from current levels. The 21 Days Simple Move Average is placed above the stock price at $0.594, implying a more bearish trend continuation for the stock. For the trend to remain intact, the prices should not dip below the support of $0.44. and the resistance is placed at $0.44.

Accumulating losses with range-bound stock prices makes the stock expensive. We give ‘Avoid’ rating and suggest investors to wait for a better entry-level on the stock at the closing price of $0.56, down by ~1.755%, as of 3^rd August 2021.

Daily Technical Chart – 3DA

Source: REFINITIV

SportsHero Limited - (ASX: SHO)

SHO is a SportsHero Limited, formerly Nevada Iron Limited, which is an Australia-based social media company, engaged in developing a real-time sports social prediction platform. The company develops and owns Olahbola, a football app in Indonesia, also provides marketing services. The company is based in Twin Waters, Australia, having a market capitalization is $12.14 million, at the current price of $0.024 per share.

Financial & Operational Highlights - As per the quarterly activities report, released on 30^th July 2021, the company generated over 4.7 million new customers in the first 12 months ending 30^th June 2021. The company is in process of developing the world’s first artificial intelligence live esports predictor and also entered into a revenue-sharing partnership with Sportsclips Ltd, a UK-based company. The company recorded its first cash receipts from its customer in the past 12 months of $30k, in the period ended on 30^th June 21. The cash balance as of 30^th June 21, was decreased to $1.83 million as compared to the previous quarter ending on 31^st March 21 of $2.26 million.

Technical Analysis- The stock showed an uptrend and spiked to print the near-term highs of $0.081, to correct from these levels. Since then the prices are in a downtrend with a narrow range, forming lower highs and lower lows. The Relative Strength Index is currently showing he reading of 44.90, which is in the middle range of the zone, implying no clear trend formation at these levels. Another trend confirmation indicator, the 21 Days Simple Moving Average is placed close to the stock prices at $0.026,  lacking any trend bias from current levels. The support for the current trend is at $0.018 and the resistance is at $0.034. Breaking either side of the range will give a clear picture of the trend formation.

Lack of substantial operating revenues, declining cash balance and stock prices heading towards the south, makes the stock less attractive from an investment perspective. Hence, we suggest investors to 'Avoid’ the stock at the closing price of $0.024 per share, down by ~4.0%, as of 3^rd Auguest 2021.

Daily Technical Chart – SHO

Source: REFINITIV

Fargo Enterprises Limited (ASX: FGO)

FGO is a technology company engaged in knowledge sharing and collaboration platforms built with artificial intelligence (AI). The Company deliver a search, retrieval and knowledge-sharing platform built for business people. The company is based in Perth, Australia, having a current market capitalization of $5.93 million at the current $0.005 per share price.

Financial & Operational Highlights- On 30^th July 2021, the company announced its quarterly results update, stating it entered into a binding share purchase agreement with BDNM Investments Pty Ltd (buyer) for the sale of its subsidiaries: Flamingo Customer Experience Inc and Flamingo Ventures Pty Ltd. On the financial front, the company did not receive any cash receipts for the past year ending on 30^th June 2021. The cash outflows from operations increased to $0.26 million in 4Q FY21 as compared to the outflow of $35k in 3Q FY21 ending on 31^st March 2021. Further, the cash balance depleted to $0.66 million as of 30^th June 2020 as compared to $0.93 million in the preceding quarter.

Technical Analysis- The stock showed a continuous downtrend, after the recent spike taking it to $0.025, followed by the sharp sell-off and later heading towards the South. The relative strength index at 47.285, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side. The 21 Days Simple Move Average is placed in tandem with the stock price at $0.005, indicating an ambiguous trend prevailing at current levels. The support is placed at $0.0035 which can bring further buying interest among the investors, and the resistance is placed at $.0065, bringing the sellers to the front step.

Missing operating revenues, declining cash balances, and sinking stock prices makes the stock unattractive. We give ‘Avoid’ rating on the stock at the closing price of $0.005, as of 3^rd August 2021.

Daily Technical Chart – FGO

Source: REFINITIV

Chalice Mining Limited (ASX: CHN)

CHN is engaged is an Australia-based mining company engaged in mineral exploration and Platinum Group Element-Nickel-Copper-Cobalt-Gold discovery. Its flagship properties include the Julimar Nickel-Copper- platinum group in Avon Region, Western Australia; and the Pyramid Hill gold project, located in Bendigo Region, Victoria. The company was incorporated in 2005 and is based in West Perth, Australia, with a current market capitalization of $2.48 billion at $7.65 per share price.

Financial & Operational Highlights - On 2^nd August 2021, the company announced the drilling updates of the 100% owned Julimar Nickle-Copper-platinum Group Element (PGE) project, with a high grade of copper and nickle mineralization present underneath. On the financial front, the company received a bare minimum cash receipt from customers of $3k for 4Q FY21 ending 30^th June 2021, whereas the cash receipts were missing in the previous quarter. Further, the cash balance depleted to $99.88 million as of 30^th June 2021 as compared to $121.46 million in the preceding quarter.

Technical Analysis- The stock recently showed a gradual upmove after bottoming out from the lows of $0.18 levels in the year 2020. The relative strength index at 56.993, which is in the middle range of the zone, points for directionless movement, which can eventually lead to a breakout on either side. The 21 days simple moving average is placed below the closing price o the stock at $7.214,  implying some more upside left for the prices from current levels. For the prices to prohibit from diving into the bear territory, the support of $6.30 should be held firmly. Similarly, for the prices to regain the uptrend, a resistance of $8.25 needs to be taken off with strong volumes.

Lack of operating revenues, volatile commodity prices and rising stock prices decoupled from the fundamentals, we suggest investors to ‘Avoid’ the stock at the closing price of $7.650 per share, up by ~6.84%, as of 3^rd August, 2021.

Daily Technical Chart – CHN

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 Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

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.