Autosports Group Limited (ASX: ASG)

Autosports Group Limited is an Australia-based automotive dealer company. The company is engaged in the business of the sale of new and used motor vehicles, distribution of finance, and insurance products.

Fundamental Analysis: ASG posted a 29% uptick in statutory NPAT in FY22 to reach AUD 56 million. The company witnessed new vehicle orders exceeded deliveries in FY22 by 25%. Its expansion strategies into the New Zealand luxury market open-up acquisition opportunities. ASG completed two notable acquisitions during the fiscal period – John Newell Mazda, Suttons Subaru & Kia, and Auckland City BMW Limited. ASG is expecting new vehicle demand to exceed supply in FY23 and FY24. It has earmarked services and parts revenue to grow 6-9% in FY23. The company is optimistic that PBT margin to remain consistent with FY22. It had closed the full year with a cash balance of AUD 90.82mn as of June 30, 2022.

Technical Analysis: On the weekly chart, ASG prices are trading above the falling trendline breakout level and taking support of the same. Moreover, the prices are trading above the trend-following indicators 21- period SMA, which may act as support zone. Further, the momentum oscillator RSI (14-period) is showing a reading of ~50.33 level. An important support level for the stock is placed at AUD 1.700 while the key resistance level is placed at AUD 2.400.

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

Considering the company’s current price levels broke a downward sloping trend line, and momentum oscillator analysis, it is prudent to recommend a ‘Speculative Buy’ rating on this stock. The stock was analysed as per the closing price of AUD 2.000 per share on 26^th October 2022.

Weekly Technical Chart – ASG

 ASG Weekly Technical Chart, Data Source: REFINITIV

Acorn Capital Investment Fund Limited (ASX: ACQ)

Acorn Capital Investment Fund Limited is an Australia-based investment company. The Company's principal activity is to invest in a portfolio of listed and unlisted microcap companies.

Technical Analysis: On the weekly chart, ACQ stock prices are facing the resistance of the falling trendline, and prices are sustaining below the trendline. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~35.70 level. Further, the prices are trading above the trend-following indicators 21- period SMA, which may act as resistance zone. An important support level for the stock is placed at AUD 0.870 while the key resistance level is placed at AUD 1.320.

Considering the company’s current price levels broke a downward sloping trend line, momentum oscillator analysis, it is prudent to recommend a ‘Watch’ rating on this stock. The stock was analysed as per the closing price of AUD 1.085 per share on 26^th October 2022, down ~0.458%.

Investors 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.

Weekly Technical Chart – ACQ

ACQ Weekly Technical Chart, Data Source: REFINITIV

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.

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 and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.