Market Update: SKS, Weebit, and Neuren Lead This Week's Buy List

�This week we're highlighting three standout buys riding structural growth themes, from data centre electrification to semiconductor royalties and rare disease pharmaceutic Hi Eason, *Market Update: SKS, Weebit, and Neuren Lead This Week's Buy List* This week we're highlighting three standout buys riding structural growth themes, from data centre electrification to semiconductor royalties and rare disease pharmaceuticals, alongside two holds where strong fundamentals are tempered by near-term risks, and two sells where the investment case has run its course. Our buy list features *SKS Technologies Group (ASX: SKS)* , *Weebit Nano (ASX: WBT)* , and *Neuren Pharmaceuticals (ASX: NEU)* , each showing strong momentum backed by tangible earnings or licensing catalysts. On the hold side, *Yancoal Australia (ASX: YAL)* and *Metals X (ASX: MLX)* offer solid underlying businesses but face valuation or balance sheet considerations that argue against fresh buying at current levels. Finally, we flag *Energy Resources of Australia (ASX: ERA)* and *Forrestania Resources (ASX: FRS)* as sells, where the fundamental or speculative case has broken down. *Enjoy my Research and Stock Picks?* Follow me on LinkedIn for more updates ( https://linkedin.com/in/markelzayed ) *Buys* *SKS Technologies Group (ASX: SKS)* is a standout buy on Australia's data centre electrification boom. H1 FY26 revenue rose 13.6% to $132 million, profit before tax surged 52.8% to $9.7 million, EBITDA jumped 42.9%, and the interim dividend lifted 250%. FY26 guidance targets $340 million revenue at a 10% PBT margin, underpinned by a robust order book and the Delta-Elcom acquisition expanding its Sydney data centre footprint, which represents 70 to 80% of the domestic market. Shares trade near $8.30 - $8.50 range, up over 289% in a year. Technically strong, though the 61x P/E leaves little room for execution slip-ups. *Weebit Nano (ASX: WBT)* offers compelling semiconductor IP exposure entering its commercial inflection point. Shares have rallied about 114% over 90 days to around $8 per share on licensing deals with Texas Instruments and onsemi, plus a first customer tape-out at onsemi's East Fishkill fab targeted for 2026. FY26 revenue guidance sits at a minimum $10 million, and a recent $102 million capital raise fortifies the balance sheet for R&D and AI-related development. The shift toward a recurring royalty model gives long-term operating leverage as ReRAM chip volumes scale. Momentum and news flow are firmly positive, though the multi-year path from licence to royalty income remains the key execution risk. *Neuren Pharmaceuticals (ASX: NEU)* is a buy on royalty growth trading at a justified premium following a powerful late-June breakout. Shares sit around $16.66, violently reclaiming their key moving averages and outperforming the All Ords after months of consolidation, giving a strong momentum entry point with consensus targets near $24.15, implying ~45% upside. Q1 2026 DAYBUE net sales through partner Acadia grew 20% to US$101 million, with royalty income up 23% to US$10.4 million, and FY26 guidance reaffirmed at US$460 to $490 million in DAYBUE sales. The new DAYBUE STIX powder formulation is gaining caregiver traction, while NNZ-2591 delivered positive Phase 2 data in Angelman syndrome and is progressing toward a Phase 3 trial in Phelan-McDermid syndrome, adding pipeline optionality beyond the core Rett franchise. Risks include revenue concentration in a single asset and an expanded 71x P/E, but the technical setup following a fresh Jefferies upgrade to Buy supports accumulation. *Enjoy my Research and Stock Picks?* Follow me on LinkedIn for more updates ( https://linkedin.com/in/markelzayed ) *Holds* *Yancoal Australia (ASX: YAL)* is a hold balancing strong fundamentals against near-term overhang. Shares sit near $5.40 to $5.50, down sharply from the 52-week high of $9.06, with technicals flashing oversold (RSI around 27) and a Strong Sell moving-average signal. The pending A$2.4 billion Kestrel met coal acquisition, targeted for completion by September 2026, is accretive long-term but adds leverage (pro-forma gearing 15 to 18%) just as diesel cost inflation threatens to push 2026 unit costs toward the top of the $90 to $98 per tonne guidance range. Consensus targets near $7.02 imply upside, but integration and coal-price risk argue for holding rather than adding. *Metals X (ASX: MLX)* is a hold after an exceptional run. Shares have surged over 127% in a year on record cash reserves exceeding A$390 million and a A$17 million cornerstone stake in Stellar Resources' Heemskirk tin project near Renison. FY25 revenue grew 30% to A$285 million with earnings up modestly. However, much of this tin-market tightness and consolidation story now looks priced in, and single-asset dependency on the 50%-owned Renison operation remains a key risk. With the stock already reflecting a bullish structural tin thesis, it's better suited to holding existing exposure than fresh buying at these levels. *Enjoy my Research and Stock Picks?* Follow me on LinkedIn for more updates ( https://linkedin.com/in/markelzayed ) *Sells* *Energy Resources of Australia (ASX: ERA)* remains an uninvestable sell. Rio Tinto now holds roughly 98.43% of shares following successive dilutive entitlement offers, with Ranger mine rehabilitation costs blown out to over A$2.2 billion against an original A$800 million estimate, and completion pushed beyond 2028. The company generates no production revenue, trades as a penny stock near zero, and exists purely as a rehabilitation funding vehicle. There's no earnings catalyst, no dividend, and minority holders face continual dilution risk. Technically the stock is a shell with negligible free float value, offering no fundamental case for retail exposure at current levels. *Forrestania Resources (ASX: FRS)* is a sell on speculative fatigue. Shares fell 7.8% to $0.405 on 7 July alone, down around 12% in ten sessions, holding sell signals on both short and long-term moving averages. Despite lithium and gold deal speculation across its Western Australian tenements, no confirmed transaction or funding catalyst has materialised, and the stock is pre-revenue with no JORC reserve beyond a modest 24,000oz gold estimate at Lady Lila. The 52-week range of $0.08 to $0.725 shows extreme volatility typical of narrative-driven microcaps. Without a tangible corporate outcome, further downside toward the $0.39 support looks likely. *Enjoy my Research and Stock Picks?* Follow me on LinkedIn for more updates ( https://linkedin.com/in/markelzayed ) **Free Disclaimer:* The base platform has no monthly fees, however, brokerage fees apply when buying or selling stocks through the platform. Many thanks for reading our updates! Feel free to call us or reply to this email with suggestions. 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