Argo Investments Limited (ASX: ARG)

ARG is an investment company (LICs), offering exposure to diversified portfolio of ASX-listed companies. The focus of the company is to optimize the long-term return to shareholders through a balance of dividend and capital growth. The company was incorporated in 1946 and is based in Adelaide, Australia with an additional office in Sydney, Australia.  The company's current market capitalization is $6.64 billion, with the current price of $9.30 per share.

Fundamental Highlights- On 12 July 2021, the company released its Net Tangible Asset (NTA) per share that stood at $9.01 and NTA per share after unrealized tax provision stood at $7.78 as of 30 June 2021. In the release dated 26^th February 2021, the company issued the Dividend reinvestment plan for the fully franked Interim dividend for the year ending 30^th June 2021, at $8.34 per share. For H1FY21, the income from operating activities declined by 43% to $74.89 million, which impacted the profitability that declined by 43.3% to $67.37 million on pcp basis. To boost the shareholder's confidence, the company announced the Interim fully franked dividend of 14 cents per share. The cash balance as of 31 December 2020 stood at $190.5 million.

Technical Analysis- The stock dipped during the March 2020 period on account of the COVID-19 restrictions, and since then prices have moved upwards with small dips in between. The Relative Strength Index is showing the reading of 66.04 which is moving towards the overbought zone, indicating further bullish momentum in the prices. The 21 Days Simple Moving Average is placed below the closing price of the stock at $9.12, further driving the stock upward trajectory from current levels. The gradual uptrend without any sudden spike or entering into the bear territory where the stock declined by more than 20%, indicates the strong formation with the base at higher support levels of $8.73. since the prices are at a lifetime high, resistance is not viable on the charts.

Declining stocks prices and profits, including dividend payout, decoupled from the lifetime high stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $9.30 per share, up by 1.528%, as of 28^th July 2021.

Daily Technical Chart – ARG

Source: REFINITIV

Sydney Airport Limited (ASX: SYD)

SYD owns Sydney Airport, providing domestic and international passenger services. Its other services include but are not limited to aeronautical services, including access to terminals, infrastructure, apron parking, and airfield and terminal facilities, as well as government, mandated security services for airlines, etc. The company's current market capitalization is $20.96 billion, with the current price of $7.73 per share.

Fundamental Highlights- On 15^th July 2021, the company announced that it has rejected the offer made by the consortium of infrastructure investors to acquire 100% of the stapled securities in Sydney Airport at an indicative price of $8.25 per stapled security, stating that the offer is not in the best interest of the security holders. As per the recent announcement, the company will release its H1FY21 results for the period ending 30^th June 2021 on 20^th August 2021, which should be keenly observed by the investors and other stakeholders. For the financial year ended 31 December 2020, the company reported various reckoning revenue metrics as a fall in traffic by 74.7% YoY to 11.2 million passengers. On the financial front, the company recorded the full year loss after income tax expense of $107.5 million, down by 150% YoY and the decline in EBITDA by 45% YoY to $627.8 million, mainly due to decrease in net operating receipts (NOR) by 95% YoY to $45.5 million.

Technical Analysis- The stock exhibits an extremely volatile nature where the sudden spike in June 2021, took the stock from $5.8 to $8.04 levels in a matter of a day. The Relative Strength Index is currently showing the print of 68.55 which is near to the upper end of the range, intent more upside from the current levels. The 21 Days Simple Moving Average is currently signalling at $7.503 which is below the stock price, giving some more upside pressure to the stock prices. For the trend to stay intact, the support of $6.93 should be respected. Similarly for the stock to counter the selling pressure coming from the resistance level of $8.27 should be taken off from the charts with heave trading volumes.

Declining cash receipts, accumulating losses and overall volatile stock prices, we suggest that investors to ‘Avoid’ the stock at the closing price of $7.73 per share, down by ~0.515%, as of 28^th July 2021.

Daily Technical Chart – SYD

Source: REFINITIV

Kairos Minerals Limited - (ASX: KAI)

KAI is engaged in the exploration of various minerals, includinggold, copper, cobalt, nickel, and lithium properties across Australia. Its flagship project is the Pilbara gold project, which includes the Mt York deposit covering an area of 1,547 square kilometres located in the Pilbara region. The company was incorporated in 1983 and is based in West Perth, Australia. The company's current market capitalization is $45.26 million, with the current price of $0.030 per share.

Fundamental Highlights- As per the release dated 28 July 2021, Pilbara exploration is accelerating with vast number of assays forecasted in coming weeks. Early phare of AC drilling completed at the Kangan Project, WA, targeting gold underlying reserves.  The results from the major RC program at Mt. York showed impressive results of gold mineralisation during its initial assay from the Old Faithful prospect as Per the company announcement on 1^st June 2021. Earlier, the drilling operations started at Roe Hills project, east of Kalgoorlie, for unearthing the Nickel and Gold lying beneath. For the quarter ended 31 March 2021, the cash position stood at $9.6 million. 

Technical Analysis- The stock made a recent high at the end of Oct 2020 and witnessed a steep decline from there only to form lower highs and lower lows. The relative strength index is currently showing the reading of 48.97 which is in the middle range of the zone, implying a lack of trend on either side from the current levels. The 21 Days Simple Moving Average is paced in close to the stock price, at $0.030, which is again lacking to confirm the trend continuation in the near term. The support is placed at $0.024, which can act as the buying level for the speculators. The resistance is placed at $0.039, from where the prices can collapse unless the stock breaches the hindrance with strong volumes.

Considering the missing operating revenues, volatile commodity prices, declining stock prices with a narrow range, we suggest investors to 'Avoid’ the stock at the closing price of $0.030 per share, up by 11.111%, as of 28^th July 2021.

Daily Technical Chart – KAI

Source: REFINITIV

Variscan Mines Limited - (ASX: VAR)

VAR was incorporated in 1987 and is based in Perth, Australia. The company is engaged in the acquisition, exploration and development of mineral properties such as zinc, copper, gold, lead, uranium, and precious metal deposits. The company owns interests in the Novales/Udias and Guajaraz projects located in Spain; the Rosario project is located to the east of the port city of Chanaral, Chile. The company's current market capitalization is $17.29 million, with the current price of $0.069 per share.

Fundamental Highlights- The company recently announced the results from the structural survey conducted at San Jose Mine, which highlighted the regional potential of undeveloped Zinc mineralisation in that area. As of 21^st June 2021, the company raised funds close to $4.25 million, which was used for the San Jose Mine project and the issue was oversubscribed. VAR has completed preliminary activities to pursue exploration on its Novales-Udias project for the unearthing of Zinc mineralisation under that surface. On the financial front, the company did not record any operating income for the past 3 quarters ending on 31^st March 2021 and maintained a cash balance of $1.36 million for a similar period. On the profitability accounts, the company reported a net loss after tax of $0.31 million for 1H FY21.

Technical Analysis- The stock recently made a high of $0.15, only to correct from there forming lower lows and lower highs. The Relative Strength Index is currently showing the reading of 48.33 which is in the middle range of the zone, not giving any clear trend bias from current levels. The 21 Days Simple Moving Average is currently placed at $0.071 above the stock price, showing some more bearish momentum to the price from here. The support is placed at $0.058, and resistance is at $0.083 levels.

Considering the lack of operating revenues, accumulating losses, volatile commodity prices and declining stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.069, up by 6.15%, as of 29^th July 2021.

Daily Technical Chart – VAR 

Source: REFINITIV

Digital Wine Ventures Limited - (ASX: DW8)

DW8 operates as a wine distribution company in Australia. The company operates WINE-DEPOT, a cloud-based technology platform to sell wine and offers wine storage services. The company's current market capitalization is $115.11 million, with a current price of $0.068 per share.

Fundamental Highlights- The company recently announced the 2^nd stage of rollout opening to the Melbourne buyers and has shipped more than 27,000 cases in June. As per the announcement made on 19^th July 20201, the company added new 25 suppliers out of which, 8 were from Victoria. DW8 signed an agreement to acquire 100% of the Parton Wine Group against the consideration based out of performance via Earn-Out and paid through the shares of DW8. And for this acquisition, the company received commitments for $7.5 million through share placement. This acquisition will enable the company to attain a position among the top 3PL in wine logistics. The cash receipts from customers for the 4Q FY21 increased to $1.03 million as compared to the $0.63 million in 3Q FY21. The cash balance decreased to $6.78 million as of June 2021 from $8.37 million in the preceding quarter.

Technical Analysis- The stock has been in a continuous downtrend forming lower highs and lower lows after printing the recent highs of $0.21 and trying to regain ground from here. The Relative Strength Index is currently showing a reading of 36.53, which is in the lower end of the range, indicating more downside remaining for the stocks from the current prices. The 21 Days Simple Moving Average is currently placed above the closing stock price at $0.0783 around the stock price, implying the further downtrend confirmation in the near term. The support is placed at $0.063, and the resistance is at $0.086.

Considering the decline in cash balance and deteriorating stock prices, we suggest investors ‘Avoid’ the stock at the closing price of $0.068, down by ~1.45%, as of 29^th July 2021.

Daily Technical Chart – DW8

Source: REFINITIV

Lithium Power International Limited - (ASX: LPI)

LPI was incorporated in 2015 and is based in Sydney, Australia. The company is engaged in the identification, acquisition, exploration, and development of lithium projects in Chile, Argentina, and Australia. The company holds a 51% interest in the Maricunga lithium brine project located in the Atacama Region, Chile: and 100% interest in the Pilgangoora lithium tenement in the Pilbara region of northern Western Australia. The company's current market capitalization is $70.75 million, with the current price of $0.255 per share.

Fundamental Highlights- The company recently announced the results from the latest drilling program on the Sage One mining concessions, confirming the fining of an average lithium concentration of 989 mg/l, as one of the richest deposits globally. Further, the exploration in Western Australia will commence with findings of lithium mineralisation underlying. On its 11^th May 2021 announcement, the company revealed its joint venture company, Minera Salar Blanco S.A. (“MSB”) with the Japanese conglomerate Mitsui $Co, Ltd. to advance the development of the Maricunga Project. On the financial front, the company did not record any operating income for the past 3 quarters ending on 31st March 2021 and the cash balance decreased to $9.02 million for the 3Q FY21 as compared to the $11.08 million in 2QFY 21.

Technical Analysis- The stock recently exhibits volatility in nature and moves in a wide range. The Relative Strength Index is currently showing the reading of 66.04 which is in the upper range of the zone, giving an upward trend bias from current levels. The 21 Days Simple Moving Average is currently placed at $0.223 below the stock price, showing some more bullish momentum to the price from here. The support is placed at $0.175, and resistance is at $0.34 levels.

Considering the lack of operating revenues, volatile commodity prices and stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.255, up by ~8.51%, as of 29^th July 2021.

Daily Technical Chart – LPI

Source: REFINITIV

Aurumin Limited - (ASX: AUN)

AUN was incorporated in 2020 and is based in Subiaco, Australia. the company is engaged in the exploration and development of gold properties across Australia. The company primarily focuses on exploring the Mt Dimer project consisting of approximately 290 square kilometers of tenements, which include 11 granted and 5 applications. The company's current market capitalization is $16.48 million, with the current price of $0.18 per share.

Fundamental Highlights- The company recently announced the positive results from the latest drilling

across Mt. Dimer, confirming a high grade of gold mineralisation lying beneath. On the financial front, the company did not record any operating income for the past 3 quarters ending on 30^th June 2021. The cash outflows from operations increased to $1.75 million for the 4Q FY21 as compared to the $0.79 million in 3QFY21. Further, the cash balance decreased to $3.76 million in 4Q FY21 as compared to the $5.51 million in 3Q FY21.

Technical Analysis- The stock recently exhibits volatility and experienced a sharp sell-off, coming to the recent lows of $0.18. The Relative Strength Index is currently showing the reading of 41.93 which is in the middle range of the zone, indicating a lack of trend confirmation from current levels. The 21 Days Simple Moving Average is currently placed at $0.19, slightly above the stock price, depicting no clear one-way price movement from the current levels. The support is placed at $0.165, and resistance is at $0.225 levels.

Considering the operating cash outflows, volatile commodity prices and declining stock prices, we suggest investors to 'Avoid’ the stock at the closing price of $0.18, down by 5.26%, as of 29^th July 2021.

Daily Technical Chart – AUN

Source: REFINITIV

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