Fundamental and Technical Analysis NXR

Hi Guys n Girls

As I always do, when I go deep out to sea with a hope of finding something that I believe is worth catching, I undertake a comparative FA announcement overlay on the Chart. It is updated over time if I am either in the stock, or alternatively considering an entry. This assists me in a number of ways. 1. It helps me to clearly see how previous announcements (and their particular type) were received by the market. 2. It helps me to identify the points of entry of different market participants eg DT's, Swing T's, Scalpers, Investors etc 3. Assists me to work out exit and entry points 4. Assists me to see when a stock may be incorrectly priced by the market so I can jump onboard or exit. Over time, I have found this exercise to be quite a useful tool in my trading/investing.


Please see below.



Market Announcements and associated Charting Movements

1. 1st April 2014 - Nemex Resources Limited (NXR) advised it had entered into a conditional agreement to diversify its activities by earning up to a 51% interest in Wavefront Biometric Technologies Pty Ltd (WBT), an emerging security biometric technology company. WBT has developed and patented a biometric technology that has the potential to revolutionise the way a person’s identity is authenticated. The technology has potential applications across numerous sectors, and initially WBT plans to focus commercialisation efforts in the mobile-online banking, mobile transactions and data security sectors

1. 15th May 2014 - Acquisition of initial 20% interest in Wavefront Biometric Technologies Pty Ltd (WBT), an emerging security biometric technology company

1. 12th August 2014 - Wavefront Biometric Technologies Pty Ltd (WBT) has successfully completed Phase 1 of its technology development program, on time and on budget. WBT has adapted its patented biometric technology for reliable and secure authentication of a person’s identity to a hand held platform. Phase 2 of the development program will focus on improving the design and performance of the prototype unit, and initiating performance reviews using test groups.  WBT’s objective is to demonstrate the enhanced product to potential users in early 2015, and commence the commercialisation process.

1. 8th September 2014 - NXR exercised its option to increase interest in Wavefront Biometric Technologies Pty Ltd (WBT not listed on ASX )to 30% . WBT has successfully miniaturised and adapted its proven technology to a mobile platform. Next phase of WBT development program to focus on: in proving design and performance of miniaturised prototype; commencing commercialisation discussions with potential, licensees in the mobile banking and military/defence sectors

1. 17th September 2014 - Nemex Resources Ltd (ASX: NXR) advised that is had entered into an agreement to dispose of its mineral interests in Côte d’Ivoire for cash consideration of A$200,000 to Cicero Advisory Services Pty Ltd. Completion of the transaction, which was not subject to any conditions, will occur on or before 14 October 2014. The monies will provide funding for NXR’s ongoing working capital requirements.

1. 31st October 2014 - Notice of Initial Substantial Holder – Mr ZhaoQing Dai becomes a substantial shareholder at 6.25%

1. 5th November 2014 - Private placement to a group of Hong Kong-based professional Investors

1. 4th December 2014 - Alto Capital initiated research coverage on the Company.

1. 13th January 2015 – Response to ASX price query - 1) The Company is not aware of any information concerning it, that has not been announced and which, if known, may reasonably be regarded as an explanation for recent trading in the Company’s securities. 2) Not applicable. 3) The Company does not have an explanation for the price change in the securities of the Company. WBT has also recently initiated commercialisation discussions with participants in the financial services and military / security sectors.

1. February 12th 2015 Response to ASX price query - As previously advised, NXR is funding the biometric technology development program of Wavefront Biometric Technologies Pty Ltd (WBT). The key targets for the current phase of development are to demonstrate that the performance of WBT’s technology is at least comparable to the current industry leading biometric modality (the iris modality), and that the technology has a number of competitive advantages in the biometric sector. The second phase of WBT’s development program is on track for completion in February 2015. NXR is also aware of increased press coverage of the biometric security industry and in particular the increasing incidence of online security breaches and the theft of personal information. As recently as last week Anthem Inc, the second largest health insurer in the USA, reported hackers broke into a database containing personal information for about 80 million of its customers and employees. NXR believes there is a growing public awareness and understanding of the significant commercial opportunities associated with biometrics across numerous global sectors.

1. 5th March 2015 - Security Biometric Technology Achieves Industry Leading Performance Announcement - Wavefront Biometric Technologies Pty Ltd (WBT) has successfully completed Phase 2 of its technology development program, on time and on budget. WBT’s disruptive technology has the potential to become the industry leading biometric and revolutionise the way people are authenticated for security purposes. WBT has developed a multi-biometric system built around WBT’s unique, patented cornea-based technology and incorporating other eye-based biometric modalities. Filing of patent applications in process over newly identified intellectual property related to multi-biometric system. Internal test results demonstrate WBT’s technology delivers performance, via a mobile platform, comparable to the current industry leading biometric modality. WBT’s technology has a number of competitive advantages including universal application, fraud resistance and proof of liveness. NXR intends to exercise option to increase its interest in WBT to 40%, and provide funding for the next phase of development and commercialisation. Phase 3 of the development program will focus on further improving performance of the multi-biometric system. Commercialisation activities will also be ramped up, including visits to key markets in North America and Asia in April and May 2015.

1. 11th March 2015 New Notice of Initial Substantial Shareholder - JPMorgan Chase& Co and Its affiliates’ 5.99%

13. 12th March 2015 NXR increases interest in Wavefront Biometric Technologies to 40% - 1. Further improving performance of the multi-biometric system. 2. Arranging completion of independent testing and assessment of technology performance. 3. Finalising and submitting patent applications in respect of the new intellectual property developed. 4. 4. Ramping up commercialisation activities. WBT is planning to demonstrate its multi-biometric system in North America and Asia in April and May 2015 to leading mobile device manufacturers and defence industry groups. Feedback from these groups will inform WBT’s commercialisation strategy and is expected to lead to licensing agreements and / or development partnerships in key target markets, including financial services, defence, health and security access. WBT remains on track to deliver an independently tested, industry leading, patented multibiometric system in 2015

So, hope that this might be of interest for not only NXR investors, but as an exercise for other stocks as well when undertaking both FA and TA. Lastly 2 points. Note that NXR reported to the market in mid Jan 2015 that "WBT has also recently initiated commercialisation discussions with participants in the financial services and military / security sectors." This is very telling imo when you put all of the pieces of the jigsaw together. Secondly, and importantly, the last 5 out of 6 trading days has seen the NXR sp not drop below 6.6c. We are now in consolidation, and all rods are nearly in the water with the highest quality Japanese lures about to be chomped once the boilup forms

Cheers
GF