3 TOP ASX PENNY STOCKS FOR 2024

TEAM VEYE | 13th February 2024

1. NATIONAL TYRE & WHEEL LIMITED

National Tyre & Wheel Limited operates as a tire and wheel importer and distributor in Australia and New Zealand, with an associated wholesale division in South Africa. The company owns and operates 11 businesses within the tire and wheel industry. These include Tyres4u, Exclusive Tyre Distributors, Integrated OE, Solid Plus, Statewide Tyres, Dynamic Wheel Co., Tyrelife Solutions, Tyreright, Black Rubber, and Carter’s Tyre Service. Tyres4U specializes in importing and distributing application-specific tires and tubes, while Exclusive Tyre Distributors and Tyrelife Solutions focus on delivering tire solutions for passenger vehicles, SUVs, light trucks, and four-wheel drives (4WD). Integrated OE provides original equipment tire and wheel solutions, particularly for manufacturers of caravans and truck trailers. Solid Plus offers wheel and tire management solutions, Statewide Tyres supplies budget-friendly tire options, and Dynamic Wheel Co. specializes in alloy and steel wheels. Tyreright and Carter’s Tyre Service are both involved in retailing tires.

Synopsis:

National Tyre & Wheel Limited saw a range of cost improvements during the second half of the year, facilitating a recovery of profits in the near future.

Aggressive efforts and initiatives observed, directed towards expanded presence from wholesale into retail, given the shifting retail trends and market scenario.

Strong book value and net tangible assets per share enables a strong backing to stakeholder value.

Technical Analysis:

(Chart source: TradingView) Monthly and Weekly Candlestick Price Chart Pattern)

On a weekly timeframe, the stock has been forming “Higher Highs,” indicating a bullish trend. The fact that the price pattern is trading above the Exponential Moving Averages (EMA) and that various indicators are pointing upwards further reinforces this bullish momentum.

Looking at the monthly chart, the stock has been maintaining an upward rally for the past five months and has consistently rejected downside moves. The resistance level at $1.035, once breached, is likely to trigger further upward movement in the stock.

Overall, when analysing the price pattern in different time frames, it is evident that the stock has the potential for a bullish trend.

2. INDUSTRIAL MINERALS LIMITED

Industrial Minerals Limited, an Australian mining company, specializes in exploring and developing various industrial minerals, including gypsum, salt, silica sand, construction sand, and aggregates. They have multiple projects across Western Australia, including Quins Project for silica sand, Unicup Project for silica sand, and Lake Macleod Project for gypsum and salt.

Technical Analysis:

(Chart source: TradingView) Monthly and Weekly Candlestick Price Chart Pattern

On a monthly chart, the presence of a “Long-Legged” Doji candlestick pattern, coupled with a rejection of downside movement and a closing price above the 14-day Exponential Moving Average (EMA) as well as above the middle Bollinger Band, suggests that the stock is gaining upside momentum. Additionally, on a weekly chart, the formation of “Higher Highs” in the price action, with the closing price above the 50-day Exponential Moving Average (EMA) and indicators turning bullish, indicates a potential for an upward trend in the stock. When both the monthly and weekly time frames exhibit these positive price patterns and indicators, it further reinforces the bullish potential in the stock. This combination of technical signals suggests that the stock may be poised for an upward move.

3. ORTHOCELL LIMITED

Orthocell Limited is an Australia-based regenerative medicine company. The Company is focused on regenerating mobility for patients by developing products for the repair of a variety of bone and soft tissue injuries. Its portfolio of products includes CelGro, Striate+, Remplir, and SmrtGraft. CelGro is a collagen medical device that facilitates tissue reconstruction and healing in a variety of dental and orthopedic reconstructive applications. CelGro is manufactured using a SMRT manufacturing process to preserve the natural collagen structure. Striate+ is used for dental GBR applications. Remplir is for peripheral nerve reconstruction. SmrtGraft is for tendon repair. Its other major products are autologous cell therapy, which focuses on regenerating damaged tendon and cartilage tissue. It is engaged in the development of its tendon cell therapy in the United States. Its autologous tendon therapy is an advanced injectable cellular therapy for the treatment of chronic tendon injuries.

Technical Analysis:

(Chart source: TradingView) Monthly and Weekly Candlestick Price Chart Pattern

The formation of “Double Bottom” on a monthly chart with price patterns trading above the 10-month close indicates bullish potential in the stock.

The  formation  of  “Higher  Highs  “with  price  patterns  trading  above  the EMA’s (Exponential Moving Averages) and well supported by the indicators suggest a bullish trend.

The price pattern in different time frames well supported by the indicators suggests upside potential.

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