Three Diversified Stocks Under 20 Cents Report with Decent Long-term Growth Potential -ICI, FRX, ATP

1. iCandy Interactive Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 120.38 mn)

iCandy Interactive Limited (ASX: ICI) is an award-winning Australian videogame company engaged in the development and licensing of mobile games.

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

1QFY22 Summary:

Key Ratios:  During FY21, ICI recorded a nil debt to equity ratio. It posted a current ratio of 11.06x as against 6.78x in F20.

Outlook:

SWOT Analysis:

Stock Recommendation:

2. Flexiroam Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 19.24 mn)

Flexiroam Limited (ASX: FRX) is involved in telecommunications and Internet of Things (IoT) connectivity.

Recent Updates:

Insights of FY22: The following picture gives an overview of business performance in FY22:

Key Ratios:  During FY22, FRX posted a current ratio of 0.69x as against 0.50x in F20.

Outlook:

SWOT Analysis:

Stock Recommendation:

3. Atlas Pearls Ltd (Recommendation: Speculative Buy, Market Cap: ~$16.25 million)

Atlas Pearls Ltd (ASX: ATP) is engaged in pearl farming, manufacturing of perfumes, as well as retailing and distribution of jewellery.

Business Update: The below picture gives an overview of the recent appointment:

Insights of 3QFY22:

Key Ratios:  During 1HFY22, ATP recorded debt to equity ratio of 0.12x against the industry median of 0.18x.

Outlook:

SWOT Analysis:

Stock Recommendation:

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

Note 1: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 15, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 2: 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 downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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