Tymlez Group Limited (ASX: TYM)

TYM is a technology company providing a blockchain platform, Tymlez, that helps businesses in tracing and tracking, secure document sharing, and peer-to-peer trading. It caters to worldwide customers. TYM holds a market capitalization of $41.44 miallion as of February 24, 2022.

Financial and Operational Highlights: On 24 February 2022, TYM announced that 10 Bollivianos Pty Ltd, Freedom Trader Pty, and Mr. Niv Dagan hiked voting rights to 10.72% in TYM from 9.65%. It had appointed Rhys Evans as a Non-Executive Director effective from February 7, 2022. As per the communication to the exchange on February 4, 2022, Tyhold 2 B.V. & Timeless-Systems GmBH, Mr. M. Reh & Fergil B.V., Mr. R.M. van der Drift ceased to be a substantial shareholder.

As mentioned in the quarterly activities report, TYM had relaunched its Tymlez portal with enhanced services to help clients to meet their ESG goals. In addition, it had appointed two Independent Directors – Jason Conroy and Luca Febbraio effective from November 1, 2021. It had roped partnership with Economic Development Queensland to pilot Tymlez platform at the Gold Coast Health and Knowledge Precinct. Further, it had entered into an agreement with UON Pty Ltd to conduct a pilot program to monitor and capture data to compute Co2 emission from their Hybrid Energy Systems. In December 2021, TYM becomes a member of the Australian Hydrogen Council. It had aligned its product portfolio to cater to green hydrogen.

For the year ending December 31, 2021, TYM posted operating cash outflows of $3.01 million with $286k receipts from customers. It had closed the quarter period with a cash balance of $4.96 million as of December 31, 2021. The company had $470k funding available under its debt facilities.

Technical Analysis: After a significant rally in prices, TYM now taking correction from higher levels. TYM recently broke the upward sloping trend line with good volume support that further indicates bearishness in the prices. RSI (14-period) came down to moderate zone from overbought region at ~51 level that indicates weak price momentum in the stock. An important support level for the stock is placed at AUD 0.028 while the key resistance level is placed at AUD 0.041.

Considering the nil core revenues, a decline in the cash balance, and current trading levels, investment in the TYM at this price should be taken prudently and after keeping the support and resistance levels in mind, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD TYM per share, down by ~16.67%, as of 24 February 2022.

Daily Technical Chart – TYM

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 is subject to the factors discussed above alongside support levels provided.

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.

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

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