Equities Commentary

Growth Focus: New Century Resources Ltd (NCZ)

by Patrick Taylor




Date of Data Capture: 12/05/2021

Name: NEW CENTURY RESOURCES LTD (NCZ)

Classification: Diversified Mining

Current Price: $0.21

Market Capitalisation: $254 M

Forecast EBITDA Growth: 54.46%

Yield Estimate: 9.30%

Consensus Price Target: $0.33

# Covering Analysts: 2

Discount at Current Price: -57.14%

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

Signal Timeframe: Quarterly-Weekly-Daily

Trend Bias: Up-Down / Long-Medium

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

Recommendation: Buy

Focus: (Dividend Income) & Capital Growth

Set up Notes:
• Zinc, lead and silver miner NCZ has slumped in steep decline over the last 3 years, but looks to be emerging into a new uptrend here, based on good earnings growth and strong forecasting.
• Refurbishing a mine is difficult and performance suffered, but recent strong 1st quarter earnings support expectations for positive cash flow this year, giving confidence, along with the discount to analyst targets and excellent recent drilling.
• A deeply cyclical stock, with huge up-and-down trends, this is one to time right - and this might be it - with good sector/commodity forecasting and strong multi-timeframe signalling showing here, with plenty of price targets higher above.
Support ($): 0.20, 0.175, 0.15, 0.125 & 0.10.
Resistance ($): 0.25, 0.30, 0.40, 0.50, 0.60…

Growth Focus: Wagners Holding Company Limited (WGN)

by Patrick Taylor




Date of Data Capture: 29/04/2021

Name: WAGNERS HOLDING CO LTD (WGN)

Classification: Construction Materials

Current Price: $2.31

Market Capitalisation: $432 M

Forecast EBITDA Growth: 17.32%

Yield Estimate: 1.68%

Consensus Price Target: $2.39

# Covering Analysts: 4

Discount at Current Price: -3.46%

Price Target Trend (3-Month): Up +59.33%

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:
• Construction materials and services operator WGN is firming up here after a major two year consolidation, rallying from deep support with strong forecasting and good analyst sentiment.
• Earning peaked in 2019 and the stock was weak going into 2020 before the Covid slump caused margins and profits to collapse, but a strong recovery is predicted this year and out to 2023.
• A strong start soon gave way to a brutal 80% pullback before finding price support mid-2020, rallying through linear resistance levels and setting up a run towards old highs above $2.00.
Support ($): 2.25, 2.00, 1.75, 1.50, 1.25 & 1.00.
Resistance ($): 2.50, 3.00, 3.50, 4.00 & 4.50.

Growth Focus: Select Harvest Limited (SHV)

by Patrick Taylor



Date of Data Capture: 07/04/2021

Name: SELECT HARVESTS LIMITED (SHV)

Classification: Food Processing

Current Price: $6.30

Market Capitalisation: $754 M

Forecast EBITDA Growth: 22.77%

Yield Estimate: 2.97%

Consensus Price Target: $7.20

# Covering Analysts: 5

Discount at Current Price: -14.29%

Price Target Trend (3-Month): Flat-Down -1.91%

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:
• Almond grower and health food producer SHV could be coming out of its shell here, breaking through linear resistance with fresh strength, good momentum and robust forecasting.
• A strong 2019 gave way to a weak 2020 with falls in sales, margins and earnings, but analysts carry a majority positive consensus, predicting a stronger recovery next year and out to 2023.
• Pricing shows a huge uptrend topping out in early 2020, before being cut in half throughout last year, major linear resistance broke last month, setting up targets much higher above.
Support ($): 6.00, 5.75, 5.50, 5.25, & 5.00
Resistance ($): 6.50, 7.00, 8.00, 9.00 & clear.

Growth Focus: Kathmandu Holdings Limited (KMD)

by Patrick Taylor



Date of Data Capture: 25/03/2021

Name: KATHMANDU HOLDINGS LIMITED (KMD)

Classification: Specialty Retailer

Current Price: $1.24

Market Capitalisation: $879 M

Forecast EBITDA Growth: 19.41%

Yield Estimate: 1.26%

Consensus Price Target: $1.57

# Covering Analysts: 3

Discount at Current Price: -26.61%

Price Target Trend (3-Month): Up-Flat +1.19%

Signal Timeframe: Quarterly-Monthly-Daily

Trend Bias: Up-Down / Long-Medium

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

Recommendation: Buy

Focus: Capital Growth

Set up Notes:
• Outdoor equipment retailer KMD could be about to see a price hike after surviving a medium-term consolidation above important support and looks ready to track higher on strong forecasts.
• 2020 saw a predicable drop in sales, margin and earnings, though a strong recovery is expected to begin this year and continue to 2023, with strong sales and margins returning profitability.
• Pricing shows a potential new uptrend emerging here after breaking minor linear resistance this week, set to test overhead resistance layered between $1.30 and $1.50 - with pre-Covid highs remaining 100% higher than current pricing.
Support ($): 1.20, 1.10, 1.00 & 0.90.
Resistance ($): 1.30, 1.40, 1.50, 2.00 & 2.50.

Growth Focus: Qantas Airways Ltd (QAN)

by Patrick Taylor



Date of Data Capture: 10/03/2021

Name: QANTAS AIRWAYS LIMITED (QAN)

Classification: Airline

Current Price: $5.17

Market Capitalisation: $9.71 B

Forecast EBITDA Growth: 359.49%

Yield Estimate: 1.29%

Consensus Price Target: $5.56

# Covering Analysts: 13

Discount at Current Price: -7.54%

Price Target Trend (3-Month): Up-Flat +4.32%

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:
• Recently breaking linear resistance, Australia’s most famous airline looks like it is heading higher after bouncing off major $5 support, gaining momentum on strengthening outlook.
• Performance is typical for the sector, with 2020 being a year of survival - in that sense it was successful and now looks to benefit from travel recommencing, as well as stimulus measures.
• Two separate v-recovery waves have brought us here, but with positive signalling across multiple timeframes, we think there is another uptrend beginning here with many targets high above.
Support ($): 5.00, 4.50, 4.00, 3.50 & 3.00.
Resistance ($): 5.50, 6.00, 6.50, 7.00, 7.50 & clear.

Disclaimer

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