Mid-Cap

Business Update on These Two ASX-Listed Stocks –TLX, GTR

April 21, 2023 | Team Kalkine
Business Update on These Two ASX-Listed Stocks –TLX, GTR

Company Overview: Telix Pharmaceuticals Limited (ASX: TLX), a radiopharmaceutical corporation, develops molecularly targeted radiation products for cancer and rare diseases in the United States, Australia, Belgium, Japan, and Switzerland. GTI Energy Limited (ASX: GTR)'s principal activities and its subsidiaries include the exploration of mineral tenements in the United States of America, including Utah and Wyoming. This report covers Business Updates, Price Action, and Technical Indicators Analysis along with the Support Levels and Resistance Levels on these two stocks.

Telix Pharmaceuticals

Q1FY23 (for the period ended 31 March 2023) Business Updates:

On 17 April 2023, TLX announced its activities report for the January-March quarter of 2023. Here are the key highlights of the report:

  • Total revenue for the quarter reached AUD 100.1mn, driven by global sales of Illuccix®, Telix’s prostate cancer imaging agent.
  • Demand for Illuccix in the United States continues to increase, with sales of AUD 97.5mn compared to AUD 76.8mn in the prior quarter.
  • Cash flow was positive for the second consecutive quarter at AUD 2.4mn.
  • Cash receipts from customers increased by 15% over the prior quarter to AUD 83.2mn.
  • Closing cash balance increased to AUD 121.4mn as on 31 March 2023 compared to AUD 116.3mn as on 31 December 2022.

17 April 2023: The company announced the successful preclinical development of radiolabelled olaratumab, an antibody licensed from Eli Lilly and Company. TLX demonstrated proof-of-concept (PoC) of using olaratumab to selectively deliver diagnostic and therapeutic radiation to tumours as a radiopharmaceutical moiety and has produced a candidate for clinical translation. Following this development, Telix will now progress to first-in-human clinical studies based on these results.

TLX’s Technical Analysis:

On the daily chart, TLX's stock price is rising after surpassing its all-time high from August 2022; however, the RSI (14-period) is trading in the overbought region with a very high level of 86.23, indicating that a correction may occur in the near future. While having been surpassed, the previous high may serve as a support level for the stock, and the 21-day SMA might function as another further support level. Important support for the stock is at AUD 8.800, while key resistance is at AUD 11.000.

Daily Technical Chart – TLX

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

The stock was analysed as per the closing price of AUD 9.790 per share as on 20 April 2023, up by 4.48%. Telix Pharmaceuticals Limited (ASX: TLX) was last covered in a report dated ‘25 July 2022'.

GTI Energy Limited

GTR Entitlement Offer:

As per the entitlement offer, existing shareholders of GTR, as on the record date (23 March 2023), will be entitled to receive one right for every 10 shares they hold to buy new shares at AU 0.9 cents per share. Secondly, for every two new shares purchased through this rights issue, investors will receive one free listed option, which can be exercised at AU 3 cents per share before 30 October 2024. The amount raised from the offer will be used to fund progress across all of its projects.  GTR is currently raising capital at 0.9c per share via a placement and a rights issue.

GTR’s Technical Analysis:

While in a downtrend, the stock price of GTR is forming a falling wedge on the chart and currently trading around the lower band of the pattern. In addition, the RSI (14-period) is showing a reading of 48.83 and is forming a positive divergence compared to price action. Prices are trading below the 50-period SMA, which may act as a resistance level for the stock. Important support for the stock is positioned at AUD 0.006, while key resistance is placed at AUD 0.012.

Daily Technical Chart – GTR

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

The stock was analysed as per the closing price of AUD 0.009 per share, as on 20 April 2023.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.

Note 3: Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Orange/ Yellow colour line represents the Trendline.

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.