Alderan Resources Limited (ASX: AL8)

AL8 is engaged in mineral exploration actives across the USA, focused on copper, gold, zinc, lead, and silver ores. It holds interests in the Frisco project and the White Mountain epithermal gold project located in Utah. The company was incorporated in 2013 and is based in Subiaco, Australia. The company's current market capitalization is $14.00 million, with the current price of $0.047 per share.

Fundamental Highlights- In the release dated 21 July 2021, the company stated the results of the petrographic examination at its Detroit project (DD20M-003), where it identified copper and molybdenum mineralised potassic altered porphyry in its core samples. Further, on 11 June 2021, AL8 announced that the subsidiary of Rio Tinto, Kennecott Exploration to extent its drilling program on the site of the Alderan’s project sited, indicating positive expectation from the results received for the final five holes. As of 31 March 2021, the company had cash balance of $1.56 million

Technical Analysis- The stock moved in a gradual downtrend forming lower highs and lower lows, failing to counter any resistance level. The Relative strength index is showing a reading of 43.44 which is in the middle zone of the range, indicating a lack of trend in any direction. The 21 Days Simple Moving Average is shadowing the stock process and placed at $0.049 which is again failing to give a trend formation or continuation from the current levels. The downtrend can take the stock to the support levels of $0.038, from where some buying interest can emerge. The resistance for the stock is placed at $0.074.

Missing operating revenues, volatile stock prices, currency exposure, and declining stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.047, as of 27^th July 2021.

Daily Technical Chart – AL8

Source: REFINITIV

Simble Solutions Limited (ASX: SIS)

SIS is engaged in software development as a service for businesses and organizations in UK, Australia, and New Zealand. It also offers mobility and energy management solutions along with its flagship product SimbleSense, integrated hardware and real-time software solutions to its clients. The company was founded in 2009 and is based in Sydney, Australia. The company's current market capitalization is $7.96 million, with the current price of $0.029 per share.

Fundamental Highlights- On 26 July 2021, the Smart energy Software-as-a-Service (SaaS) company announced to raise circa A$1.5 million at an offer price of $0.025 per new share through Placement to new and existing sophisticated and institutional shareholders. Further, as per the release dated 30 April 2021, the company signed a 3-year contract with United Solar Group to provide solar and energy metering software platforms and apps integrated with third party energy IoT devices. The contract is expected to generate revenues of $260k throughout the contract. On 29 April 2021, it signed a 3-year contract with a solar energy provider, Juice Capital with a minimum commitment for onboarding software and services under the contract over $50k. For the March quarter, the cash inflow from operating activities stood at $0.36 million and net cash outflow stood at $0.19 million. As of 31 March 2021, the cash balance stood at $655k.

Technical Analysis- The stock moved in a gradual uptrend forming higher highs and higher lows, and giving spikes in between, only to correct from there. Since then, the stock was in a range-bound trade and consolidating, which eventually gives a breakout in the near term. The Relative strength index is currently reading at 46.44 which is in the middle of the range, coinciding with the stock prices without giving any clear trend formation. The 21 Days simple moving average is placed slightly above $0.030 which is close to the stock closing price, again missing any strong trend continuation of formation from these levels. The support for the prices is $0.024, below which a new leg for downtrend will open up and for upside potential trend formation the resistance of $0.039, must be taken off from the charts. 

Declining cash balances, accumulating losses and overall declining stock prices, we suggest that investors to ‘Avoid’ the stock at the closing price of $0.029, as of 27^th July 2021.

Daily Technical Chart – SIS

Source: REFINITIV

Field Solutions Holdings Limited - (ASX: FSG)

FSG is a telecommunications carrier and technology company, provides connectivity and business solutions for rural, regional, and remote areas in Australia. The company provides cloud computing applications and software development services, manages, and optimizes cloud and network infrastructure and builds disaster recovery scenarios. The company's current market capitalization is $94.60 million, with the current price of $0.18 per share.

Fundamental Highlights- As per the release dated 21 July 2021, the company has been awarded $3.19 million funding from the Federal Government’s Mobile Blackspot Program round 5a, which is a 10x increase from Round 5 last year, helping the company to construct 15 towers across NSW, WA and QLD. The company expects long term revenue steam to grow existing tower portfolio and facilities leasing. Before this, another funding of $0.94 million was awarded to launch Australia’s 4^th mobile Network and expected to deliver 4G, 5G and IoT services in near future. One of the biggest funding was awarded in April 2021 of $20.475 million, which will generate revenues of $85 million over 7 years adding 69,889 k of network coverage. For H1FY21, the company reported revenue at$7.4 million, up 33% YoY, EBITDA at $0.52 million, up 20% YoY, and Net profit after tax at $0.28 million, up 182% YoY.

Technical Analysis- The stock showcases a gradual uptrend since 2020 after eroding record stock value in the previous year and printed the lifetime lows of $0.10. The relative strength index is currently showing the reading of 62.01 which is still in the middle range of the zone, giving the sign to wait before the trend formation takes place in either direction. The 21 Days Simple moving average is placed at $0.163, which is below the stock price and indicating further upside movement to the stock prices. For the stock to continue the uptrend, the prices should hold the support of $0.145 and the resistance of $0.205 should be pierced with strong volumes for the prices to sustain in the long term. 

Dependency on the government funding, technological changes, prices hovering at near lifetime lows, we suggest that investors ‘Avoid’ the stock at the closing price of $0.18, up by ~5.882%, as of 27^th July 2021.

Daily Technical Chart – FSG

Source: REFINITIV

Argenica Therapeutics Limited - (ASX: AGN)

AGN was incorporated in 2019 and is based in Nedlands, Australia. The company is engaged in the Research & Development of a neuroprotective therapeutic drug in Australia. Its lead product candidate is ARG007, a neuroprotective peptide candidate in pre-clinical trials for use in protecting brain tissue against damage during a stroke. The company's current market capitalization is $15.36 million, with the current price of $0.20 per share.

Fundamental Highlights- The company recently announced, the cash grant received $0.29 million to advance pre-clinical research of its therapeutic product, ARG-007 in preparation for Phase 1 trials. The preliminary study shows the positive results of tests on its ARG-007 when co-administered with Tissue Plasminogen Activator to continue producing neuroprotection. In the interim financials ending half-year 31 December 2020, AGN posted profit of $65.2k mainly led by other income. It had closed the period with a cash balance of $1.22 million.

Technical Analysis- The stock has been recently listed. Hence, the data required to conduct technical analysis of chart patterns and observations is not possible. Support is placed at $0.19, and resistance is around $0.245.

Since it is a recently listed stock, nil revenue generation, and inadequate data to study the technical analysis of the prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.20, down by ~4.76%, as of 27^th July 2021.

Daily Technical Chart – AGN 

Source: REFINITIV

Armour Energy Limited- (ASX: AJQ)

AJQ was incorporated in 2009 and is based in Brisbane, Australia. The company is engaged in the discovery, development, and production of natural gas and associated liquids resources in Australia. The company's current market capitalization is $50.08 million, with a current price of $0.031 per share 

Fundamental Highlights- The company recently announced the sale of shares in Ripple Resources Pty Ltd to Auburn Resources Limited (Auburn), to focus on its core assets and operation in the Surat and Cooper basins. Further, the company successfully raised $11.5 million via private placement to institutional investors and sophisticated investors for conducting various exploration and Norther Basin Business demerger along with costs associated with IPO. The company eventually received the required number of votes from its shareholders for the proposed McArthur Oil & Gas demerger and IPO transaction. The sales revenues for the 3Q FY21 increased to $4.67 million as compared to the $4.0 million in 2Q FY21. The cash balance increased to $7.99 million as of March 2021 from $5.86 million in the preceding quarter. It is worth mentioning, the Secured Amortising Notes were reduced by $8.0 million to $42.4 million during 3Q FY21.

Technical Analysis- The stock has been in a continuous downtrend forming lower highs and lower lows and printed the recent low of $0.023 and trying to regain grounds from here. The Relative Strength Index is currently showing a reading of 56.39, 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 $0.024, and the resistance is at $0.037.

Various corporate restructuring activities such as stake sale, demerger, and IPO of another unit, along with declining stock prices, give many uncertainties to the investors. Hence, we suggest that investors ‘Avoid’ the stock at the closing price of $0.031, as of 27^th July 2021.

Daily Technical Chart – AJQ

Source: REFINITIV

Genex Power Limited - (ASX: GNX)

GNX was incorporated in 2013 and is based in Sydney, Australia. The company is engaged in generating and storing renewable energy in Australia and generates power through hydro, wind, and solar projects. The company's current market capitalization is $240.72 million, with the current price of $0.235 per share.

Fundamental Highlights- The company recently announced the financial closure of the Kidston Pumped Storage Hydro Project for the total consideration of $777 million, which will enable to company to work towards achieving carbon neutrality by 2050. For this project, the company received $147 million in funding support from the Queensland Government. As a result, the cash receipts from customers increased to $4.23 million in 4Q FY21 from $3.61 million in 3Q FY21. Further, the operating cash outflows increased in 4Q FY21 to $1.77 from the cash outflows to $0.96 in 3Q FY21. The cash balance increased to $49.73 million in 4Q FY21 from $39.16 million in 3Q FY21. The group reported a net loss of $3.37 for the 1H FY21 ending on 31^st December 2020.

Technical Analysis- The stock is picking up the momentum and witnessing upticks with some dips in between. The Relative Strength Index is 52.53; moving is in the middle range of the zone, which is quite far from overbought/ oversold levels for getting any trend confirmation basis. The 21 Days Simple Moving Average is placed in tandem with the stock price at $0.231, lacking any direction from current levels. The support is placed at $0.195, keeping the stock trend intact, preventing it from entering the bear territory. The resistance is hovering at $0.265, from fresh selling can exert downward pressure on the stock prices.

Considering the accumulating losses, volatile stock prices with a narrow range, we suggest investors to 'Avoid’ the stock at the closing price of $0.235, up by 4.44%, as of 27^th July 2021.

Daily Technical Chart – GNX

Source: REFINITIV

AnteoTech Ltd. - (ASX: ADO)

ADO was incorporated in 1995 and is based in Eight Mile Plains, Australia. The company is engaged in developing, commercializing, manufacturing, and distributing products for the life sciences research and medical device markets, primarily in Australia. The company's current market capitalization is $410.17 million, with the current price of $0.225 per share.

Fundamental Highlights- The company recently signed a Distribution Agreement with Biomed and its subsidiaries to distribute EuGeni Reader and SARS-COV-2 Antigen Rapid Diagnostic Test (RDT).  The company raised $8 million via Share Purchased Plan, which was oversubscribed to support the operations. The company signed a participation agreement with the Future Battery Industries CRC (FBICRC) to work collectively on ‘The Super Annode Project', enabling the company to join a $130 million project for the next four years. S&P Dow Jones Indices announced to include AnteoTech Ltd. in S&P/ ASX Indices, enabling the investors to track the stock widely and attract investments. The sales revenues for the 3Q FY21 decreased to $0.11 million as compared to the $0.24 million in 2Q FY21. The cash balance decreased to $5.13 million in 3Q FY21 from $6.43 million in 2Q FY21.  It is worth mentioning, the net loss for the 1H FY21 was increased by 32% to $1.46 million.

Technical Analysis- The stock was uptrend and made a recent high of $0.495 and corrected sharply from there and entered in a downtrend forming lower highs and lower lows. The Relative strength index is 42.22, which is in the middle range and not giving any conducive signals of any particular trend. The 21 Days Simple Moving Average is placed above the closing stock price at $0.242, directing for a fresh downtrend at the prices from current levels. The support on the chart is placed at $0.155, whereas the resistance is placed at $0.295 levels.  

Considering the declining revenues from operating receipts, cash balances and accumulating losses, and declining stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.225, up by 7.14%, as of 27^th July 2021.

Daily Technical Chart – ADO

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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