3 Stocks Falling Off The Cliff – FCT, FFC And AQX

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The ASX declined around 1.2 pct on back of the vague agreement between the US and China on the trade front. The technical levels also broke down in the wake of some forced selling of the US stocks. Three stocks from different sectors on the S&P/ASX 200 that were affected the most and fell off the cliff are as follows:

FIRSTWAVE CLOUD TECHNOLOGY LIMITED (ASX: FCT) – With the allocation of 24.3 million new Fully Paid Ordinary Shares to new and existing sophisticated investors the company has completed $3.4 million placement which will provide it with capital to continue execution of international expansion, strengthen partnerships with existing Global Security Vendors and support existing customers. The company has also signed CustomTec as a channel partner in Australia against its public cloud platform. It has also recently signed its first international service provider (SP) through Mindflow. Driven by an increase in investment of $3.2 million the EBITDA loss was of $6.3 million. The stock plunged as much as 22.222% on the day to reach its 52-week low of $0.140 as at December 5, 2018. 

FARMAFORCE LIMITED (ASX: FFC) – The company is now cashflow positive and the loss for the year FY 18 was of $482,828 which reduced from FY17 of $2,307,433 and showcase that the company has reaped the rewards of the investments in sales team, support staff and latest technology. Up from $3.967M last year revenue for the 12 months to June 2018 was $7.098M, although net assets of the company declined to $(0.890M) from $(0.467M) but the cash reserve balance has improved from $0.254M to $0.577M and the most significantly increased liability was $1.368M of deferred revenue as compared to $0.233M last year. With attention to margin enhancement and cost containment the company has reported strong revenue growth. The stock however, plunged by 16.667% on the day to trade at $0.100 as at December 5, 2018.

ALICE QUEEN LIMITED (ASX: AQX) – The company increased resource inventory by 31% to (JORC 2012) 7.9Mt @ 1.9g/t Au for 492,000oz for Horn Island. At its flagship Horn Island gold project the company raised efforts during a further $5.50 million (before costs) in new equity to fund its ongoing exploration. With the best reported interval of 11 meters at 2.89 g/t Au from 70 meters down hole the initial 9-hole diamond core program at SSR delivered some significant gold intercepts. For the reporting period of 2018, the group incurred a loss after tax of $2,424,079 as compared to the 2017 loss of $1,138,203 resultant to which the directors recommend that no dividend to be paid for the reporting period ended 30 June 2018. The stock plunged as much as 7.143% on the day to reach near its 52-week low at $0.013 as at December 5, 2018.

FCT

FCT, FFC, AQX MACD analysis; Source: Thomson Reuters


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