Three Diversified Stocks Under 20 Cents Report with Decent Long-term Growth Potential -CV1, KSN, CLT

This report is an updated version of the report published on the 29^th July 2022 at 3:35 PM GMT. 

1. CV Check Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 58.62mn)

CV Check Limited (ASX: CV1) provides ‘Know Your People’ solutions, which include pre-employment screening, verification services and workforce compliance management – internationally.

Business Updates: The below picture gives an overview of key valuable updates:

4QFY22 Summary:

Key Ratios:  During 1HFY22, CV1 recorded a nil debt to equity ratio. It posted a current ratio of 2.80x against 2.25x in 1HFY21.

Outlook:

SWOT Analysis:

Stock Recommendation:

2. Kingston Resources Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 39.62mn)

Kingston Resources Limited (ASX: KSN) is involved in the exploration of gold and other minerals at Misima Gold Project in Papua New Guinea (PNG).     

Business Updates: The below picture provides an overview of crucial business updates:

4QFY22 Highlights: The following picture showcases the performance during the quarter ended 30 June 2022:

Key Metrics: During 1HFY22, the company recorded current ratio of 11.64x against the industry median of 2.05x.

Outlook:

SWOT Analysis:

Stock Recommendation:

3. Cellnet Group Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 6.57mn)

Cellnet Group Limited (ASX: CLT) is a distributor of lifestyle technology products across Australia and New Zealand.

Insights of 1HFY22:

Key Metrics: During 1HFY22, CLT posted a current ratio of 1.70x against 1.58x in 1HFY21.

Outlook:

SWOT Analysis:

Stock Recommendation:

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 29, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclosure: CV Check Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any related insights concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

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