Equities Commentary

Growth Focus: Sezzle Inc. (SZL)

by Patrick Taylor



Date of Data Capture: 12/02/2021

Name: SEZZLE INC. (SZL)

Classification: Transaction & Payment Services

Current Price: $10.75

Market Capitalisation: $1.59 B

Forecast EBITDA Growth: 47.52%

Yield Estimate: 0.00%

Consensus Price Target: $11.29

# Covering Analysts: 3

Discount at Current Price: -4.67%

Price Target Trend (3-Month): Up-Flat +7.36%

Signal Timeframe: Quarterly-Monthly-Weekly

Trend Bias: Up-Flat / Long-Medium

Indicators:
Short-term: Positive-Neutral
Medium-term: Positive
Long-term: Positive

Recommendation: Buy
Focus: Capital Growth

Set up Notes:
• Payment services operator SZL has been running hot since breaking out of a major downtrend late-2020 and looks likely to move higher on strong performance and forecasting.
• Strong sales growth has been the main driver of gains since 2019 and this is expected to continue through to 2023, combining well with the company going cash flow positive this year.
• A very strong run throughout 2019 peaked mid-2020 with pricing consolidating over 50% before breaking linear resistance late 2020, and rallying up to major resistance at $10 – this ceiling broke just this week, setting up higher targets above.
Support ($): 10.50, 10.00, 9.00 & 8.00.
Resistance ($): 11.00, 11.50, 12.00 & clear.

Growth Focus: Neometals Ltd (NMT)

by Patrick Taylor



Date of Data Capture: 18/11/2020

Name: NEOMETALS LTD (NMT)

Classification: Specialty Mining & Metals

Current Price: $0.23

Market Capitalisation: $125 M

Forecast EBITDA Growth: N/A

Yield Estimate: 0%

Consensus Price Target: N/A

# Covering Analysts: 0

Premium/Discount at Current Price: N/A

Price Target Trend (3-Month): N/A

Signal Timeframe: Quarterly-Monthly-Weekly

Trend Bias: Up-Down / Long-Medium

Indicators:
Short-term: Neutral
Medium-term: Positive-Neutral
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:
• This resurgent mine developer has good assets across lithium, titanium, nickel and vanadium and is well set to ride ongoing commodity strength higher with good momentum here.
• An aggressive recovery play, we are entering prior to reaching positive cash flow, but the company has low debt, plenty of cash and is progressing well to first production in 2021.
• Breaking out of major downtrend earlier this month, the stock shot up but will likely test support at 20c again soon, and if signalling is correct we could be at the start of another rally.
  • Support ($): 0.20, 0.175, 0.15, 0.125 & 0.10.
  • Resistance ($): 0.25, 0.30, 0.35, 0.40 & clear.

Growth Focus: SRG Global Ltd (SRG)

by Patrick Taylor




Date of Data Capture: 03/12/2020

Name: SRG GLOBAL LIMITED (SRG)

Classification: Construction & Engineering

Current Price: $0.405

Market Capitalisation: $189 M

Forecast EBITDA Growth: 54.83%

Yield Estimate: 2.38%

Consensus Price Target: $0.46

# Covering Analysts: 2

Discount at Current Price: -13.58%

Price Target Trend (3-Month): Up-Flat +12.20%

Signal Timeframe: Quarterly-Monthly-Weekly

Trend Bias: Up-Down / Long-Medium

Indicators:
Short-term: Positive-Neutral
Medium-term: Positive
Long-term: Positive

Recommendation: Buy

Focus: (Dividend Income) & Capital Growth

Set up Notes:
• Construction services and mine engineering company SRG could be entering a fresh new longer-term uptrend here, breaking important resistance this month on building momentum.
• Despite showing strong growth from 2018-19, earnings softened in 2020 (but it did remain profitable) and forecasts show analysts have strong expectations for continued recovery.
• The technical setup is very attractive after it broke through a major 2-year linear downtrend in November and looks like it is breaking out here with old highs far above current levels.
  • Support ($): 0.40, 0.35, 0.30 & 0.25.
  • Resistance ($): 0.45, 0.50, 0.60, & 0.75.

Growth Focus: New Century Zinc Ltd (NCZ)

by Patrick Taylor



Date of Data Capture: 09/11/2020

Name: NEW CENTURY RESOURCES LTD (NCZ)

Classification: Zinc Mining

Current Price: $0.17

Market Capitalisation: $183 M

Forecast EBITDA Growth: N/A (Cashflow +ve 2021)

Yield Estimate: 0%

Consensus Price Target: $0.43

# Covering Analysts: 2

Discount at Current Price: -60.47%

Price Target Trend (3-Month): Flat-Down -14.00%

Signal Timeframe: Quarterly-Monthly-Weekly

Trend Bias: Up-Down / Long-Medium

Indicators:
Short-term: Positive-Neutral
Medium-term: Positive
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:
• Zinc miner NCZ has been galvanising investor hopes with improving performance and price strength as the company continues to recover, supported by strong zinc commodity markets.
• An early-stage recovery play refurbishing an operating mine, and could have the timing right as zinc pricing firms and the company continues to ramp production and lower costs – currently excellent discount to consensus price targets.
• The huge run in 2017 has consolidated back over the last two years, establishing a good support base beneath current pricing with multi-timeframe momentum signalling emerging here.
 Support ($): 0.15, 0.125 & 0.10.
 Resistance ($): 0.20, 0.25, 0.30, 0.40 & 0.50.


Growth Focus: Pilbara Minerals Limited (PLS)

by Patrick Taylor




Date of Data Capture: 23/10/2020

Name: PILBARA MINERALS LIMITED (PLS)

Classification: Lithium Mining

Current Price: $0.40

Market Capitalisation: $902 M

Forecast Sales* Growth: 34.36% *(CFP in 2022)

Yield Estimate: 0%

Consensus Price Target: $0.32

# Covering Analysts: 6

Premium at Current Price: +20.00%

Price Target Trend (3-Month): Up-Flat +39.13%

Signal Timeframe: Quarterly-Monthly-Weekly

Trend Bias: Up-Down / Long-Medium

Indicators:
Short-term: Positive-Neutral
Medium-term: Positive
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:
• New energy metal supplier PLS could be turning a corner as the lithium market recovers strength, along with great expectations for future growth, we see a potential new uptrend forming here.
• Performance has been poor over the last few years as the company worked through terrible conditions, here showing strong sales growth and expectations for positive cash flow by 2022.
• Pricing peaked in late 2017 at $1.30 and fell by almost 90% by the time of the 2020 Covid-lows in March - here we find them rallying through major linear resistance with good momentum and plenty of old price targets higher above.
  • Support ($): 0.375, 0.35, 0.325, 0.30 & 0.25.
  • Resistance ($): 0.40, 0.50, 0.60, 0.70 (+).

Disclaimer

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