Three Diversified Stocks Under 20 Cents Report with Long-term Growth Potential -VRX, SNS, CDT

1. VRX Silica Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 92.13Mn)

VRX Silica Ltd (ASX: VRX) is engaged in the development of world-class, high-grade silica sand projects in Western Australia.

Business Updates: The following picture gives an idea of valuable business updates:

Insights of 4QFY22:

Key Ratios: During 1HFY22, the company recorded a current ratio of 15.63x against the industry median of 2.26x. In addition, VRX recorded a debt-to-equity ratio of 0.00x as compared to the industry median of 0.16x.

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: VRX Silica 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.

2. SenSen Networks Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 52.09mn)

SenSen Networks Limited (ASX: SNS) is engaged in the development and sale of SenDISA platform-based products and services.

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

Key Metrics: During 1HFY22, the company recorded a current ratio of 2.48x against 0.97x 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.

3. Castle Minerals Limited (Recommendation: Speculative Buy, Market Cap: ~AUD 31.98mn)

Castle Minerals Limited (ASX: CDT) possesses interests in numerous projects in Western Australia and Ghana which are prospective for battery metals (lithium and graphite), base metals and gold.

Business Updates: The following picture gives an idea of valuable business updates:

Insights of 4QFY22:

Key Ratios: The company maintained a trend of nil-debt to-equity since 1HFY20.

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 26^th August 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.

Disclaimer

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