IXICO PLC

IXICO PLC (LON: IXI) is listed on FTSE AIM All-Share Index. It is a fast-growing and lucrative medical data analytics company that serves the pharmaceutical clinical trials sector with data management and advanced analytics.

Investment Rationale – Watch at GBX 52.64

• Decrease in Top Line: The company’s revenue for the FY21 (ended on 30 September 2021) was £9.2 million compared to £9.5 million for the FY20.
• Risk of Client Trial Failures: The company’s order book was reduced to £18.8 million in FY21 from £21.7 million in FY20 due to significant client trail failures.
• Decrease in Cash: The company’s cash position was £6.7 million in FY21 compared to £7.9 million in FY20.
• Unfavourable Technical Indicators: From a technical viewpoint, the 14 days RSI stood at ~56.42, indicating a further downtrend.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the decrease in the top line, client trial failures, the decline in cash, and bearish technical indicators, we have given a “WATCH” recommendation on IXICO PLC at the current market price of GBX 52.64 (as of 16 February 2022, at 09:18 AM GMT).

Aston Martin Lagonda Global Holdings PLC

Aston Martin Lagonda Global Holdings PLC (LON: AML) is an FTSE 250 index listed manufacturer of luxury cars. It operates through two business divisions- Aston Martin and Lagonda.

The Company will release preliminary results for the year ended 31 December 2021, on 24 February 2022.

Investment Rationale – Watch at GBX 1,196.50

• The decline in Cash: The Company had posted a cash balance of £420 million as of 31 December 2021 compared to £495 million as of 30 September 2021.
• Increase in Pre-tax Loss: The company's pre-tax loss was £97.9 million in Q3 FY21 compared to £80.5 million in Q3 FY20 due to high operating costs.
• Increase in Net Debt: The company’s net debt stood at £809 million as of 30 September 2021 compared to £727 million as of 31 December 2020.
• Operational Performance: The company’s wholesales increased by 82% to 6,182 units, as expected. In its first full year of production, 3,001 DBX cars were sold, accounting for almost 20% of the luxury SUV market.
• Unfavourable Technical Indicators: The stock is trading below the 50 days EMA of GBX 1,293.54, indicating a bearish stock price position from a technical standpoint.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the decline in cash, increase in losses, increase in net debt, operational performance, and bearish technical indicators, we have given a “WATCH” recommendation on Aston Martin Lagonda Global Holdings PLC at the current market price of GBX 1,196.50 (as of 16 February 2022, at 08:58 AM GMT).

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

Note 2: Investment decisions 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. 

Technical Indicators Defined: -

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.

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