Equities Commentary

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 (+).

Growth Focus: Pinnacle Investment Group (PNI)

by Patrick Taylor




Date of Data Capture: 09/10/2020

Name: PINNACLE INVESTMENT GRP LTD (PNI)

Classification: Investment Services

Current Price: $5.32

Market Capitalisation: $923 M

Forecast EBITDA Growth: 18.68%

Yield Estimate: 2.96%

Consensus Price Target: $6.08

# Covering Analysts: 4

Discount at Current Price: -14.29%

Price Target Trend (3-Month): Up-Flat +20.16%

Signal Timeframe: Quarterly-Monthly-Daily

Trend Bias: Up-Flat / Long-Medium

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

Recommendation: Buy

Focus: (Dividend Income) & Capital Growth

Set up Notes:
• Investment Manager PNI was on a good track to recovery prior to the Covid slump, but with strong performance and forecasting they seem like a good opportunity here on fresh strength.
• Showing steady sales, earnings and profits growth since 2017, the company even managed to produce positive growth this year, with greater returns expected going forward.
• Breaking out of linear downtrend in Feb 2020 and rallying 35% in 3 weeks, before Covid pulled values down 60% by March – linear resistance has been rebroken since and it could be setting up another potential long-term uptrend here.
  • Support ($): 5.25, 5.00, 4.75, 4.50 & 4.00
  • Resistance ($): 5.50, 6.00, 6.50, 8.00 & 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.