Creso Pharma Limited. (ASX: CPH)

CPH was incorporated in 2015 and is based in Newlands, Australia. The company is engaged in developing and commercialization of pharmaceutical-grade cannabis and hemp-based nutraceutical products and treatments for human and animal health across in Middle East, Europe, North America, and the Asia Pacific. The company's current market capitalization is $160.77 million, with the current price of $0.135 per share.

Fundamental Highlights- The company recently announced the completion of the acquisition of Halucenex Life Sciences Inc., a well-established Canadian psychedelics firm, intending to step into the global emerging market for psychedelic medicines – estimated to be worth up to the US $100 billion. The company recorded an increase of 24% in the revenues to $1.71 million for the quarter ended 31^st June 2021 compared to the $1.38 million on 31^st March 2021. To carry out the expansion and further projects, the company raised $18 million through fully paid ordinary shares. As a result, the cash and cash equivalents grew to $18.6 million on 31^st March 2021 from $6.0 million on 31^st December 2020.

Technical Analysis- The stock showed a strong breakout in November 2020, printed the highs of $0.47, and witnessed a sharp sell. The prices are in a range-bound trajectory, leading to a breakout in either direction in the coming weeks. The Relative strength index shows 43.24, which is in the middle zone of the range, indicating a lack of a strong trend in either direction. The 21 Days Simple Moving Average is hovering closer to the stock prices, showing $0.14, failing to indicate any clear trend in the near term. The support is currently placed at $0.13, which should be respected to keep the prices falling further into a deep red. The resistance is at $0.195, which can act as the supply range from the traders, keeping the prices well check from rising further.

With ambitious plans of making a global footprint through acquisitions is contrary to the stock price performance, which gives a contradictory signal for considering the stock. Therefore, we suggest investors to 'Avoid' the stock at the closing price of $0.135, down by 3.57%, as of 20^th July 2021.

Daily Technical Chart – CPH

Source: REFINITIV

Australian Vanadium Limited- (ASX: AVL)

AVL was incorporated in 2015 and is based in West Perth, Australia. The company is engaged in mineral exploration and Energy Storage in Australia covering vanadium/ titanium, uranium and other economic resources. The company’s major property is consisting of 11 tenements covering approximately 260 square kilometres, located within Western Australia. The company's current market capitalization is $55.69 million with the current price of $0.019 per share.

Fundamental Highlights- The company recently announced the high vanadium extractions, ranging to the possibility of 88-90%, in the Pellet Leach Pilot process. The Government of Western Australia agreed to fund up to $112k for the Nickel-Copper-Platinum Group Elements-Gold Project. The discovery of High-Grade gold within the Vanadium-titanium-magnetite deposit indicates significant gold mineralization from 247 samples assayed from 17 holes recently. The company did not receive any cash receipts past 3 quarters ending on 31^st March 2021, and the positive cash flow was as a result of the receipt of the government grant of $1.05 million. The cash and cash equivalents also witnessed a drop to $6.15 million on 31^st March 2021 as compared to the $7.15 million on 31^st December 2020.  

Technical Analysis- The stock witnessed a downtrend forming lower highs and lower lows and hovering near the support of $0.018 levels. The Relative strength index shows 43.78, which is in the middle zone of the range, indicating a lack of a strong trend in either direction. The 21 Days Simple Moving Average is hovering closer to the stock prices at $0.020, failing to indicate any clear trend in the near term. The resistance is at $0.027, which needs to take off the charts for the stock to resume an uptrend, which can be sustained once accompanied by an increase in trading volumes.

Lack of operating revenues, declining cash and bank balance, and downward trending stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.019, as on 20^th July 2021.

Daily Technical Chart – AVL

Source: REFINITIV 

Fe Limited - (ASX: FEL)

FEL was incorporated was founded in 2005 and is based in West Leederville, Australia. The company explores battery metals, lithium, nickel, copper, iron, gold, and base metal deposits. The company's current market capitalization is $62.29 million, with the current price of $0.082 per share.

Fundamental Highlights- The company recently announced the sale of its Pilbara Exploration tenements for the total consideration of $0.55 million, along with trailing royalty on certain tenements. Further, the company raised $15,000 through the exercise of unlisted options at $0.03 expiring 31 August 2022. Earlier to this, in February 2021, the company raised $5.5 million to fund its iron ore projects. The company did not receive any cash receipts past 3 quarters ending on 31^st March 2021. The cash outflows from operations were increased by 100% to $1.0 million on 31^st March 2021 compared to the outflows of $0.53 million on 31^st December 2021. The cash and cash equivalents were increased to $9.64 million on 31^st March 2021 compared to the $4.86 million on 31^st December 2020.  

Technical Analysis- The stock is in the uptrend forming higher highs and higher lows. The relative strength index shows a reading of 67.64, which gives a clear indication of the continuing uptrend. The 21 days simple moving average is placed at $0.062, way below the stock closing price, giving another confirmation of the uptrend in the stock prices for the near term. The support is currently placed at $0.065, which can emerge as the buying opportunity to keep the stock afloat. The resistance is placed at $0.105, which needs to be taken off the charts when the prices accompany substantial trading volumes.

Lack of operating revenues, increasing cash outflows from operations, and rising stock prices, suggest investors to “Avoid” the stock at the closing price of $0.082, down by 7.87%, as of 20^th July 2021.

Daily Technical Chart – FEL

Source: REFINITIV

Cirralto Limited - (ASX: CRO)

CRO is based in Melbourne, Australia. The company is engaged in developing and commercializing technology assets, enabling the synergies and modernization of business IT systems through migrations and management of server-based data and cloud services in Australia. The company's current market capitalization is $167.76 million, with the current price of $0.061 per share.

Fundamental Highlights- The company recently announced to acquire a 100% stake in the Sydney-based Fintech, Invigo, for the total consideration of $10 million, which will give synergies to operate more efficiently and cross-sales of its products. Further, it got into the referral agreement for five years with the leading name as Mastercard and Fresh Supply Co. Pty Ltd., enabling Cirralto to expand payments and cash flow solutions globa. As a result, the trading on CRO has been temporarily suspended until July 21, 2021. The cash receipts from the customers grew up by 25% to $0.29 million in 3Q FY21. To further strengthen the balance sheet and fund the operations and acquisitions, the company raised $18 million, increasing the cash balance for 3Q FY21 to $24.3 million. On the customer base, the customer acquisition growth was recorded at 12.5%, and the merchant's turnover increased by 18%. For the 1H FY21, CRO posted a net loss of $1.26 million.

Technical Analysis- The stock spiked in early 2021 and printed the recent high of $0.21, and since then, the sharp sell was witnessed, eroding two-third of its value by the time stock approached the current levels. The Relative strength index shows a reading of 54.57, which is again in the middle of the zone, hinting at a directionless trading pattern. The 21 Days Simple Moving average is placed in tandem with the stock prices below $0.056, pointing to the uptrend for the stock to maintain. The support on the chart is at $0.047, and the prices can still face a hurdle at $0.083.

Considering accumulating losses and lifetime low stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.061, as of 20^th July 2021.

Daily Technical Chart – CRO

Source: REFINITIV

Thor Mining PLC - (ASX: THR)

THR was incorporated in 2004 and based in London, the United Kingdom. The company is engaged in exploring and developing mineral properties across Australia and the United States, covering Gold, Nickle, Tungsten, Molybdenum, etc. The company's current market capitalization is $26.01 million with the current price of $0.015 per share.

Fundamental Highlights- The company recently announced the results from the early-stage diamond drilling at Alford East Copper-Gold project, SA, the traceability of copper as 106.5m @ 0.14% Cu (pXRF) from 8m (21AED001). Further, the company received a grant of $0.30 million from the South Australian Government and another grant of $0.11 million from the Northern Territory Government for its Molyhil tungsten project. The company did not receive any cash receipts past 3 quarters ending on 31^st March 2021. The cash outflows from operations were reduced by more than 50% to $0.28 million on 31^st March 2021 compared to the outflows of $0.59 million on 31^st December 2021. The cash and cash equivalents were increased to $2.05 million on 31^st March 2021 as compared to the $1.21 million on 31^st December 2020.  

Technical Analysis-The stock showed some uptick after touching the lifetime lows of $0.003 and spiked till $0.040, post that the stock is in a range-bound trade. The relative strength index shows the reading of 40.93 in the middle zone, and hence any substantial direction of the prices is missing. The 21 days simple moving average is moving in coordination with the stock prices and currently printed the reading of $0.016, which lacks the strong trend formation from current market prices. The support of $0.012 should be held strongly for preventing the stocks from deep dive to the South. On the upside, the stock can face intense selling pressure at the resistance of $0.025.

Lack of operating revenues, highly depended on the government grants for its operation, and declining stock prices suggest that investors “Avoid” the stock at the closing price of $0.015, down by 6.25%, as of 20^th July 2021.

Daily Technical Chart – THR

Source: REFINITIV

Nyrada Inc. (ASX: NYR)

NYR was incorporated in 2017 and is based in Gordon, Australia. Nyrada Inc., a pre-clinical stage drug development company, engages in developing small molecule drugs for cardiovascular, neurodegenerative, and chronic inflammatory diseases. The company is also developing NYR-BI01 to treat traumatic brain injury and stroke. The company's current market capitalization is $44.46 million, with the current price of $0.285 per share.

Fundamental Highlights- The company recently announced the results of its second pre-clinical study of NYX-PCSK9i, revealing the reduced cholesterol by two–thirds on given the prescribed doses. To fund its current and upcoming clinical trials in the pipeline, the company raised $11 million through the issue of equity route. Also, Nyrada received $1.0 million for Research & Development Tax Incentive rebate from the Australian Federal Government. NYR did not receive any cash receipts past 3 quarters ending on 31^st March 2021, and cash and cash equivalents were increased to $10.25 million on 31^st March 2021 compared to the $4.06 million on 31^st December 2020. The net loss for 1H FY21 ending on 31^st December 2020 was $2.68 million.

Technical Analysis- The stock was in a strong uptrend post its listing and printed the lifetime high of $0.46, and since then, the prices have corrected and trading in a range-bound manner. The relative strength index shows a reading of 39.58, which is in the middle range and lacks conform and trend bias from here. The 21 days simple moving average is placed at $0.315, which is above the stock price and gives a single for the stock to witness a downtrend from here. The support is currently placed at $0.26, and the resistance is at $0.35. The stock is poised to move in the range confined by the support and resistance unless substantial volumes accompany the prices.

Lack of operating revenues and declining stock prices suggest that investors to “Avoid” the stock at the closing price of $0.285, as of 20^th July 2021.

Daily Technical Chart – NYR

Source: REFINITIV

Newpeak Metals Limited (ASX: NPM)

NPM was incorporated in 1995 and is based in Brisbane, Australia. The company is engaged in exploring and developing mineral properties as gold across Finland, New Zealand, and Argentina. The company's current market capitalization is $11.40 million, with the current price of $0.002 per share.

Fundamental Highlights- The company recently announced the data acquisition results and study over its Swedish Strategi Metal permit portfolio, declaring the results were positive and further work is going on. The company recently raised $1.625 million of capital through equity to fund its various projects and execute the expansionary plans. On the financial front, the company failed to record the cash receipts from the customers for the straight three consecutive quarters ending on 31^st March 2021, and the cash outflows from operations increased to $0.42 million on 31^st March 2021 from $0.19 million on 31^st December 2020.  The cash balance for the quarter ending on 31^st March 2021 was $1.8 million.

Technical Analysis- The stock moved in a very narrow range of $0.004 and $0.001 in, past two years. The relative strength index shows a reading of 46.24, which is in the middle zone of the range, indicating a lack of a strong trend in either direction. The 21 Days Simple Moving Average is hovering closer to the stock prices, showing $0.002, failing to indicate any clear trend in the near term. The support is currently placed at $0.001, which should be respected to keep the prices falling further into a deep red. The resistance is at $0.0035, which can act as the supply range from the traders, keeping the prices well check from rising further.

Lack of operating revenues, volatile commodities prices, narrow range of stock price movements, we suggest investors to ‘Avoid’ the stock at the closing price of $0.002, as on 20^th July 2021.

Daily Technical Chart – NPM

Source: REFINITIV

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.