Equities Commentary

Growth Focus: Superloop Limited (SLC)

by Patrick Taylor



Date of Data Capture: 25/11/2021

Name: SUPERLOOP LIMITED (SLC)

Classification: Telecommunications Services

Current Price: $1.21

Market Capitalisation: $592 M

Forecast EBITDA Growth: 75.27%

Yield Estimate: 0%

Consensus Price Target: $1.32

# Covering Analysts: 4

Discount at Current Price: -9.09%

Price Target Trend (3-Month): Up-Flat +5.60%

Signal Timeframe: Monthly-Weekly-Daily

Trend Bias: Up-Flat / Medium-Short

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

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    This emerging Asia Pacific telecommunications play has broken out of downtrend and looks to be heading higher, nearing positive cash flow, rallying on stronger growth and forecasting.

·    Soft trading conditions saw weaker sales in 2020 and only slight growth this year, but earnings have been improving with margins, and strong growth expected next year and out to 2024.

·    The stock reached a capitulation low in March 2020 before rallying into old $1 resistance and consolidating sideways for the last year - linear resistance broke last month on momentum and could be a good entry here with old highs above.

§ Support ($): 1.20, 1.10, 1.00, 0.90 & 0.80.

§ Resistance ($): 1.30, 1.50, 1.80, 2.00, 2.50 & 3.00.

Growth Focus: Tietto Minerals Ltd (TIE)

by Patrick Taylor



Date of Data Capture: 09/11/2021

Name: TIETTO MINERALS LIMITED (TIE)

Classification: Gold Miner

Current Price: $0.42

Market Capitalisation: $192 M

Forecast EBITDA Growth: N/A (cash flow +ve 2023)

Yield Estimate: 0%

Consensus Price Target: $0.80

# Covering Analysts: 1 (thin coverage warning)

Discount at Current Price: -90.48%

Price Target Trend (3-Month): Up-Flat +33.34%

Signal Timeframe: Quarterly-Monthly-Daily

Trend Bias: Up-Down / Long-Medium

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

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    This gold explorer is developing its assets in the Cote d’Ivoire, West Africa, working to commence production by late 2022, and has been getting attention due to very high grade gold intercepts.

·    It can be difficult to value companies before they begin production, but we can see asset quality in recent drill results (like 7m @ 30.67g/t) and also gain confidence in the MD investing $1m.

·    The chart shows strong gains leading to periods of consolidation (and good entry opportunities), the trends match underlying gold pricing, which also looks to be turning higher on momentum.

Support ($): 0.40, 0.35, 0.30 & 0.25.
Resistance ($): 0.45, 0.50, 0.60, 0.70, 0.75 & clear.

Growth Focus: Image Resources NL (IMA)

by Patrick Taylor



Date of Data Capture: 27/10/2021

Name: IMAGE RESOURCES NL (IMA)

Classification: Mineral Sands Mining

Current Price: $0.20

Market Capitalisation: $203 M

Recent EBITDA Growth: 22.24%

Yield Estimate: 10.00%

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: Positive-Neutral
Medium-term: Positive
Long-term: Positive

Recommendation: Buy

Focus: (Dividend Income) & Capital Growth

Set up Notes:
• Mineral sand miner IMA looks to be breaking out of a two-year consolidation and could move higher on improving performance, initiation of dividend payments and commodity strength.
• Operating one of the highest grade and recovery projects in Australia, the company saw profits grow 19% last year, and with demand high we expect further gains as the company ramps up.
• After gaining 650% from 2017-19 the stock fell into downtrend and pulled back by 60% to the lows of last year, since then pricing has broken linear downtrend and is now emerging from a strong support base, on good momentum.
Support ($): 0.19, 0.18, 0.17, 0.16 & 0.15.
Resistance ($): 0.20, 0.22, 0.25, 0.28, 0.30 & clear.

Growth Focus: Nova Minerals Limited (NVA)

by Patrick Taylor



Date of Data Capture: 13/10/2021

Name: NOVA MINERALS LIMITED (NVA)

Classification: Gold Explorer

Current Price: $0.18

Market Capitalisation: $304 M

Forecast EBITDA Growth: N/A (pre-cash flow)

Yield Estimate: 0%

Consensus Price Target: N/A (uncovered)

# 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: Positive
Medium-term: Positive-Neutral
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    Nova is drilling out its gold assets in Alaska/US, developing this new exploration province - while it remains years away from cash flows, there could be a good entry on fresh strength here.

·    Gold explorers are valued on ounces in the ground, and NVA was shaping up to be a large- scale, low-grade deposit - and then they hit bonanza grades (incl. 132m at 10.1g/t) this week.

·    The market has responded enthusiastically to these intercepts as they further de-risk the high potential project significantly, with the stock rallying through linear resistance on momentum.

§ Support ($): 0.17, 0.16, 0.15, 0.13, 0.12 & 0.10.

§ Resistance ($): 0.20, 0.25, 0.30, 0.40 & 0.50.

Growth Focus: Infomedia Ltd (IFM)

by Patrick Taylor



Date of Data Capture: 01/10/2021
 

Name: INFOMEDIA LTD (IFM)
 

Classification: Software & IT Services
 

Current Price: $1.76
 

Market Capitalisation: $659 M
 

 Forecast EBITDA Growth: 21.64%

 
Yield Estimate:
3.25%

 
Consensus Price Target:
$2.10

 
# Covering Analysts:
5

 
Discount at Current Price:
-19.32%

 
Price Target Trend (3-Month):
Up-Flat +0.48%

 
Signal Timeframe:
Quarterly-Monthly-Weekly

 
Trend Bias: Up-Down / Long-Medium

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

Recommendation: Buy

 
Focus: (Dividend Income) & Capital Growth

 
Set up Notes:

·    This enterprise software developer has been consolidating a very strong rally for the last two years and is emerging into a new potential uptrend here, supported by robust forecasting.

·    Historically a strong performer IFM had a softer year last year (remaining profitable), and should return to stronger sales and earnings growth next year and out to 2024 as margins recover.

·    Pricing shows the initial breakout beginning late last year before entering a minor downtrend until last month when this also broke on good momentum, looking like an attractive entry here.

§ Support ($): 1.70, 1.60, 1.50 and 1.40.

§ Resistance ($): 1.80, 1.90, 2.00, 2.20, 2.40 & clear.

Disclaimer

This report was produced by Taylor Securities Pty Ltd, which is a Corporate Authorised Representative (Number 414063) of Bespoke Portfolio Pty Ltd (AFSL 341991). Taylor Securities and Patrick Taylor (Representative number 414064) have made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, Taylor Securities and Patrick Taylor does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities or financial products. The securities or financial products recommended by Taylor Securities and Patrick Taylor carry no guarantee with respect to return of capital or the market value of those securities or financial products. There are general risks associated with any investment in securities or financial products. Investors should be aware that these risks might result in loss of income and capital invested. Neither Taylor Securities and Patrick Taylor nor any of its associates guarantees the repayment of capital. WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.
 

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