Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 26 Aug, 24 | HMR | Speculative Buy | CAD 1.613 | CAD 1.91 | CAD 2.05 | 4 days | 27.1% |
Data Powered by EOD Historical Data (“EODHD”).
Homerun Resources Inc. engages in the exploration and development of mineral properties in Canada and Brazil. The company extracts and processes silica sand deposits. It has an option to acquire a 100% interest in the Tatooine Silica project that covers an area of approximately 3,958 hectares located in Brisco, British Columbia; and the Belmonte silica concession covering an area of approximately 69.4 hectares located in Belmonte, Bahia. The company was formerly known as EnviroTek Remediation Inc. and changed its name to Homerun Resources Inc. in August 2021. Homerun Resources Inc. was incorporated in 1980 and is headquartered in Vancouver, Canada.
Lower Credit Risk Exposure: Debt-Equity of 0.29x in Q2 FY24 vs 0.42x in Q2 FY23
Increasing Cash Balance: Cash Balance of CAD 0.31 mn in Q2 FY24 vs CAD 0.07 mn in Q1 FY24
Lower Liquidity: Current Ratio of 1.01x in Q2 FY24 vs Industry Median of 2.17x
Negative Profitability: Net Income of CAD -1.16 mn in Q2 FY24
Project Development Delays, Resource Valuation, Funding and Capital Requirements, Exploration Uncertainty, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 1.613 | 1.434 | 1.91 | 2.05 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
On the weekly chart, the momentum oscillator RSI (14-Period) is showing a reading of ~60.18 levels, indicating positive momentum. Moreover, the weekly volumes also seem supportive of the upward movement. Further, the stock is trading above 21-period & 50-period SMAs, which may act as a support level.
As per the above-mentioned price action and technical analysis, Homerun Resources Inc. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Gold
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to EBITDA (x) | |
|---|---|---|---|---|---|---|---|---|
| HMR Homerun Resources Inc. |
- -% | 1.30 | - | - | - | 298.38 | -10.4108 | |
| ARTG Artemis Gold Inc |
0.28 2.02% | 14.11 | - | 11.72 | - | 5.16 | -30.8158 | |
| SGD Snowline Gold Corp. |
- -% | 5.10 | - | - | - | 12.88 | 28697.45 | -36.1728 |
| MAU Montage Gold Corp |
0.02 0.96% | 2.10 | - | 67.11 | - | 12.04 | -11.3108 | |
| NFG New Found Gold Corp |
0.07 3.08% | 2.34 | - | - | - | 8.85 | -11.0158 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
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.
Target: 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. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 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.
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