Equities Commentary

Growth Focus: MACA Ltd (MLD)

by Patrick Taylor



Date of Data Capture: 26/08/2020

Name: MACA LIMITED (MLD)

Classification: Mining Support Services

Current Price: $1.04

Market Capitalisation: $279 M

Forecast EBITDA Growth: 10.34%

Yield Estimate: 5.78%

Consensus Price Target: $1.25

# Covering Analysts: 3

Discount at Current Price: -16.82%

Price Target Trend (3-Month): Up-Flat +8.70%

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:
• Mining services operator MACA looks like it is emerging out of a major recovery base, buoyed by the resurgent resources sector and looking good on stronger performance and forecasting.
• Even though sales have been rising since 2017, profits had fallen on lower margins in 2018/19, before the earnings boost last year with further strong performance expected out to 2022.
• Pricing has crested back above major (and very important) $1 price resistance, and now looks ready to chase old highs with positive short and longer-term momentum signalling here.
Support ($): 1.00, 0.95, 0.90, 0.85 & 0.80.
Resistance ($): 1.10, 1.20, 1.30, 1.40 & 1.50.

Growth Focus: Aurelia Metals Ltd (AMI)

by Patrick Taylor



Date of Data Capture: 13/08/2020

Name: AURELIA METALS LTD (AMI)

Classification: Integrated Mining

Current Price: $0.565

Market Capitalisation: $458 M

Forecast EBITDA Growth: 33.64%

Yield Estimate: 5.24%

Consensus Price Target: $0.68

# Covering Analysts: 3

Discount at Current Price: -20.35%

Price Target Trend (3-Month): Up-Flat +36%

Signal Timeframe: Quarterly-Monthly-Daily

Trend Bias: Up-Down / Long-Medium

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

Recommendation: Buy

Focus: (Dividend Income) & Capital Growth

Set up Notes:
• Precious/base metal producer/explorer AMI is setting up another potential longer-term uptrend here after breaking out of a major downtrend in June, supported by strong forecasting to 2022.
• Strong performance for years gave way to weak earnings in 2019 as margins suffered for greater revenue gains, though this should reverse in 2021 and carry forward with increasing strength.
• Pricing shows the recent rally stalling under minor resistance at 75c last month, pulling back to just above major support of 50c here, and with momentum growing in the longer-term timeframes we think this is an entry opportunity.
Support ($): 0.55, 0.50, 0.45 & 0.40.
Resistance ($): 0.60, 0.65, 0.70, 0.80 & 1.00.

Growth Focus: Nearmap Ltd (NEA)

by Patrick Taylor



Date of Data Capture: 29/07/2020

Name: NEARMAP LTD (NEA)

Classification: Technology & IT Services

Current Price: $2.25

Market Capitalisation: $1.02 B

Forecast EBITDA Growth: 226.09%

Yield Estimate: 0.00%

Consensus Price Target: $2.73

# Covering Analysts: 7

Discount at Current Price: -21.33%

Price Target Trend (3-Month): Up-Flat +28.17%

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:
• We are returning to NEA as the online aerial photomapping specialist looks to shake off a period of slower 2020 growth, to chase old highs on firmer forecasting and fresh price strength.
• Performance has been mixed, with very strong growth leading into 2019 before moderating - but despite softer returns this year, forecasting sets up a strong earnings recovery trend out to 2022.
• After gaining 400% in two years, the rally ended mid-2019 and entered price consolidation, eventually falling more than 75% by March 2020 - here we find them midway through recovery and above major support with signs for a new potential longer-term uptrend emerging here.
Support ($): 2.25, 2.00, 1.75 & 1.50.
Resistance ($): 2.50, 2.75, 3.00, 3.50 & 4.00.

Growth Focus: Praemium Ltd (PPS)

by Patrick Taylor



Date of Data Capture: 15/07/2020

Name: PRAEMIUM LIMITED (PPS)

Classification: Investor Services IT

Current Price: $0.425

Market Capitalisation: $174 M

Forecast EBITDA Growth: 16.67%

Yield Estimate: 0.24%

Consensus Price Target: $0.60

# Covering Analysts: 6

Discount at Current Price: -41.18%

Price Target Trend (3-Month): Flat-Down -6.25%

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: Capital Growth

Set up Notes:
• Wealth Management operator PPS has been in consolidation downtrend since mid-2018, ending a huge rally from 2016 - and here we see them setting up a new potential long-term uptrend.
• Performance shows a history of strong earnings growth for years, though softer figures last year exacerbated the pullback, here we find robust forecasting for sales and margin growth out to 2022 with strong positive consensus sentiment.
• Pricing shows an exponential blow-off peak in 2018 triggering a major consolidation as the top-heavy stock pulled sharply lower, but here we have major linear resistance breaking on fresh positive momentum and looks like it could run.
Support ($): 0.425, 0.40, 0.375 & 0.35.
Resistance ($): 0.45, 0.50, 0.60, 0.85 & 1.00.


Growth Focus: Pro Medicus Ltd (PME)

by Patrick Taylor



Date of Data Capture: 18/06/2020

Name: PRO MEDICUS LIMITED (PME)

Classification: Medical Software & Technology

Current Price: $26.76

Market Capitalisation: $2.89 B

Forecast EBITDA Growth: 22.81%

Yield Estimate: 0.46%

Consensus Price Target: $28.43

# Covering Analysts: 7

Discount at Current Price: -6.24%

Price Target Trend (3-Month): Up-Flat +1.90%

Signal Timeframe: Monthly-Weekly-Daily

Trend Bias: Up-Down / Long-Short
Indicators:
Short-term: Positive-Neutral
Medium-term: Positive-Neutral
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    Health imaging technology specialist PME is currently climbing higher within a sharp recovery growth trend and offers a fresh entry here with good performance and forecasting.

·    Strong sales, margins and earnings growth from 2015 rewarded shareholders well, but recent weakness should be a good buying opportunity with further strong growth expected out to 2022.

·    Pricing shows an exponential rally reaching its blow-off top culmination by late 2019, before entering price consolidation (exacerbated by the Covid19 panic) but is now rallying again off deep support with positive momentum building here.

§ Support ($): 25.00, 22.50, 20.00, & 15.00.

§ Resistance ($): 30.00, 35.00, 37.50 & 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.