Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 8 Oct, 24 | NOU | Speculative Buy | CAD 2.12 | CAD 2.4 | CAD 2.6 | 8 days | 22.6% |
Data Powered by EOD Historical Data (“EODHD”).
Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores for graphite. The company's flagship property is the 100% owned Matawinie graphite property including 176 mining claims covering an area of 9,264 hectares located in Quebec. It also involved in the real estate and trading activities. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-Des-Saints, Canada.
Improving Cash Position: Cash and Short Term Investments of CAD 73.9 mn in Q2 FY24 vs CAD 59.8 mn in Q2 FY23
Lower Credit Risk Exposure: Debt-Equity of 0.72x in Q1 FY24 vs 1.47x in Q1 FY23
Lower Liquidity: Current Ratio of 1.07x in Q1 FY24 vs Industry Median of 2.17x
Negative Profitability: Net Income of CAD -11.08 mn in Q2 FY24
Cost Overruns, Technological Dependence, Environmental Compliance, Infrastructure Limitations, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 2.12 | 1.75 | 2.4 | 2.6 |
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.
Price Action Analysis (On the Daily Chart)
On the daily chart, NOU stock prices are sustaining above the falling trendline breakout level and continuously taking support from the trendline. The recent upside movement in the stock is backed by increasing volumes, further supporting a positive bias. The next resistance level is plotted around CAD 2.41, and the stock may test that level in the short term (2-4 weeks).
Technical Analysis (On the Daily Chart)
On the daily chart, the momentum oscillator RSI (14-Period) is showing a reading of ~54.88 levels, indicating positive momentum. Moreover, the weekly volumes also seem supportive of the upward movement. Further, the stock is trading above the 21-period SMA, which may act as a support level.
As per the above-mentioned price action and technical analysis, Nouveau Monde Graphite Inc. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock as of 08 October 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Other Industrial Metals & Mining
| 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) | |
|---|---|---|---|---|---|---|---|---|
| NOU Nouveau Monde Graphite Inc |
-0.31 13.30% | 2.02 | - | - | - | 1.86 | -8.4936 | |
| SGML Sigma Lithium Resources Corp |
0.35 2.23% | 16.04 | 117.60 | 12.59 | 6.64 | 11.00 | 7.33 | 37.02 |
| AFM Alphamin Res |
- -% | 1.09 | 15.50 | 9.43 | 3.68 | 3.24 | 2.67 | 5.64 |
| SLI Standard Lithium Ltd |
0.03 1.51% | 2.02 | 3.62 | - | - | 1.61 | 2.70 | |
| ALDE Aldebaran Resources Inc |
0.37 21.14% | 2.12 | - | - | - | 2.67 | -16.8764 |
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.
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 level is October 08,2024 at 06:50 AM PDT. The reference data in this report has been partly sourced from REFINITIV.
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.
Disclaimer :
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