QPM LONG (ASX)QPM's debt financing is making progress. An important milestone was reached with a German supplier collaboration agreement as well as German Funding support. German companies Plinke GmbH and Andritz Separation GmbH & Siemens LTD have agreed with supplying a significant proportion of capital equipment required for the TECH PROJECT. Germany's Export Credit agency provided a tied loan guarantee of 500 million and Kfw IPEX confirmed an interest in providing 250 million.
QPM currently has A$1.4 billion in conditional debt funding. Investors await the potential debt commitments of K-Sure and other commercial banks. Investors also await an equity component here. QPM has done exceptionally well despite the economic climate but it is important to be objective as their 2.1b capex total remains a significant hurdle. A high level of risk is still involved here (despiting Stephen Grocott and his team continually derisking this project!). I have personally reduced my holdings out of concern of current macro conditions.
From a charting perspective, QPM has been in a deep downtrend since October 2022. QPM has experienced reprieve after the german supplier collaboration on the 4th of April. Without it, the ticker was in the doldrums experiencing a death cross on 7th December 2022. Any impulsive movement above the top trendline (15c to 17c) alongside a corrective flat in that range will constitute a buy signal. Any movement like this would probably coincide with further debt financing progress. Can Stephen Grocott and his team bring this home?
QPM trade ideas
QPM @ 2 NOV 2021Text me if you have any questions/comments for me.
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QPM
- Previous analysis was done on 15 Oct (red arrow) - Suggested entry at current levels if comfortable with the setup and the stock’s price volatility
- Since then, the stock created a LH and quickly fell back below the mid-term support
- Short-term average no longer offers a strong support -> not a good sign
- Today’s price action has broken through the 22.5 cents support level
- The mid-term average is now a resistance
- Immediate support looks to be around the 20-21 cents zone
- Strategy-to-buy (DYOR) – Suggest waiting for the stock to recover to around $0.27 levels
QPM @ 15 Oct 2021Text me if you have any questions/comments for me.
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QPM
- Previous analysis was done on 1 Sep - Suggested waiting for successful breakout of overhead resistance before plotting entry on condition of being comfortable with stock’s price volatility
- After successful breakout, the stock has gone up more than 20%
- Stock continues to respect the short-term support
- Stock has technically had a successful rebound
- R is more than 10%
- Strategy-to-buy (DYOR) – Suggest entry at current levels if comfortable with the setup and the stock’s price volatility
QPM @ 1 SEP 2021QPM
- First time doing a written analysis on QPM
- Stock started to show uptrend in 2021
- Currently trading near a resistance that was formed in 2012 -> it would be more difficult to sustain the overall price trajectory
- I usually classify stocks less than 50 cents as a penny stock as a relatively healthy pullback to the short-term support could see price swings of 10-20% -> too volatile for me
- A stock that attracts short-term traders but it’s advisable to stay away if you prefer peace of mind
- R is more than 10%
- Strategy-to-buy (DYOR) – Suggest waiting for overhead resistance to be broken first. Only enter if comfortable with the price swings