Nanosynth Group PLC

Nanosynth Group PLC (LON: NNN) is an FTSE AIM All-Share listed Company engaged in the synthesis and application of nanoparticles to create new and improve existing products.

Investment Rationale for Valuation – Watch at GBX 0.36

• Share Price Jump: The progress regarding partnership with Volz led to the jump in share price by ~59% on 4 July 2022. The company is optimistic on its partnership with Volz and is positive to apply for REACH UK registration (UK Registration, Evaluation, Authorisation and restriction of Chemicals) with the HSE. This will allow it to produce up to 60 tonnes of copper.
• Strategic Update: The Company announced on 01 June 2022 that it has decided not to remain in the face mask production and supply business. It entered a partnership with Volz Holdings and is currently testing the spraying of its technology used within the masks directly on to the material media strands.
• Easing of COVID-19 Curbs: The unit price of the face masks has dropped significantly following the easing of COVID-19 curbs and the decline in the spread of active cases.
• Loss in FY21: The company reported a widening of net losses from continuing operations to £3.18 million in FY21, compared to a loss of £0.97 million in FY20.
• Technical Indicator: The price of the stock is trading close to the upper Bollinger band, while 14-day RSI levels of ~61.35, indicating an overbought stance.

One Year Share Price Chart

Conclusion

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.

Based on the uncertain macro conditions, loss from operations, and bearish technical indications, we have given a “WATCH” recommendation on Nanosynth Group PLC at the closing market price of GBX 0.36 (as of 04 July 2022).

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

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 for upside potential, risks, holding duration, and any previous holdings.

Note 3:  Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which 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 at which 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: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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