Chapmans Limited

Negative operating cash flow for June quarter and Fund raising: Diversified investment company, Chapmans Limited (ASX: CHP) during the June quarter posted the Net Cash Flow from operating activities of $(436,000) and the company expects cash flow for the next quarter to be $(410,000). On the other hand, CHP had successfully raised $830,000 for working capital through a placement of 500,000,000 shares to Professional and Sophisticated Investors at $0.00166 per share. The funds raised will be used for working capital and existing investments. CHP plans to fund its working capital requirements on an ongoing basis, through a combination of equity and/or debt raisings and/or the sale of existing investments. As a result, CHP stock has fallen 78.57% in three months as on August 06, 2018. Based on the foregoing, we believe that the stock (with $ 2.32m as market capitalisation) is a highly speculative one that needs to be watched for any investment. CHP traded at the current price of $0.001.

Merlin Diamonds Limited

Enhancing ore processing: Merlin Diamonds Limited (ASX: MED) during June quarter has stated that the group is aiming to double the ore processing capacity with new scrubber, which is currently in preparation for shipment. Processing is slated to increase from 50 tonnes per hour to 100 tonnes. The delivery is expected in late August 2018 and this new addition will increase the current head feed rate as indicated above (from 50tph to 100tph), doubling the production of diamonds. Moreover, during the June quarter, Mine Management Plan (MMP) had approved the mining of five pits, including Excalibur, Gwain, Ywain, Ector and Kaye. The group (with $ 22.59m as market capitalisation) is yet to demonstrate significant positive updates. We believe the stock can be watched while it rose 14.286% and closed at $ 0.008 as at August 07, 2018.

Alexium International Group Ltd

June Quarter Activities report:Specialty Chemical group, Alexium International Group Ltd (ASX: AJX) during the June quarter, appointed Dr. Robert (Bob) Brookins as an interim CEO, and after the end of the June quarter appointed Dr. Brookins as the CEO and Managing Director and Mr. Richard Estes as Vice President of Research and Development. Moreover, in the next six months, AJX has planned to launch more than ten new products based on Alexicool technology. On the other hand, in the fourth quarter, AJX’s cash receipts fell to $2.5M, driven by the company’s decision to discontinue sales and the reduction in sales of an Alexicool product by a major customer. The staff cost had increased in the June quarter, but there is an expectation of significant fall in the staff expenditures from beginning of Q1 FY 19. Additionally, to achieve profitability and grow the business, the company has planned expansion of Alexicool products in phase change material (PCM) markets for bedding, application of flame retardant nylon cotton blends (FR NyCo) for military uniforms and commercialization of Alexiflam NF. Meanwhile, AJX stock has risen 19.35% in three months as on August 06, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock ($ 63.91m as market capitalisation) at the current price of $ 0.18.

 
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