Three Diversified Stocks Under 20 Cents with Decent Long-term Growth Potential -VRX, KSN, MCM

1. VRX Silica Limited (Recommendation: Speculative Buy, Market Cap: ~$78.17 million)

VRX Silica Ltd (ASX: VRX) is involved 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:

(Source: Company Reports)

Key Ratios: During 1HFY22, the company recorded a current ratio of 15.63x against the industry median of 2.07x. In addition, debt-to-equity ratio stood at ~0.01x during the same period.

Current Ratio (Source: Analysis by Kalkine Group)

Outlook:

(Source: Company Reports)

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.

VRX Daily Technical Chart, Data Source: REFINITIV

2. Kingston Resources Limited (Recommendation: Speculative Buy, Market Cap: $55.72 Million)

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

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

(Source: Company Reports)

Q3FY22 Highlights: The following picture showcases an idea of performance during the quarter ended 31 March 2022:

(Source: Company Reports)

Key Metrics: During 1HFY22, the company recorded current ratio of 11.64x against the industry median of 2.07x.

Current Ratio Trend (Source: Analysis by Kalkine Group)

Outlook:

Source: Company Reports

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.

KSN Daily Technical Chart, Data Source: REFINITIV

3. MC Mining Limited ((Recommendation: Speculative Buy, Market Cap: ~$17 million)

MC Mining Limited (ASX: MCM) is involved in coal exploration, development, and mining in South Africa.

Business Updates: The below picture gives an idea of the recent loan facility:

(Source: Company Reports)

Insights of Q3FY22: The following picture gives an overview of the quarter ended 31 March 2022:

(Source: Company Reports, Analysis by Kalkine Group)

Key Metrics:  During 1HFY22, the company recorded a cash cycle of 48.2 days against 78.9 days in 1HFY21. It posted a debt-to-equity ratio of 0.21x against the industry median of 0.49x.

Cash Cycle (Source: Analysis by Kalkine Group)

Outlook:

(Source: Company Reports)

SWOT Analysis:

Key Risks: MCM could be affected by COVID-19 disruption, demand & supply risk, change in climate, price risk, regulatory risk, etc.

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.

MCM Daily Technical Chart, Data Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above. 

Support: A level where-in 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 where-in 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: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

Kalkine New Zealand Limited is authorised to provide general advice only. The information on this website does not take into account any of your investment objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement from the product issuer. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions.