ATP Atlas Pearls Ltd.

[lorraina]

Atlas Pearls Ltd (ATP), an ASX listed company, has become one of the world's leading producers of the high quality white and silver South Sea pearls. The Company operates across seven farming locations throughout the South Seas and employing more than 1,000 people, the Company harvested more than 629,000 pearls in the FY2022.
Market cap at 3.9 cents is $16,686,998.56.Number of shares on issue..427,871.758
eps 0.98....PE [adj] 3.98....NTA 6 cents per share.
Today's trading up date is a cracker.
https://stocknessmonster.com/announcements/atp.asx-6A1155190/

[BlackPeter]

Atlas Pearls Ltd (ATP), an ASX listed company, has become one of the world's leading producers of the high quality white and silver South Sea pearls. The Company operates across seven farming locations throughout the South Seas and employing more than 1,000 people, the Company harvested more than 629,000 pearls in the FY2022.
Market cap at 3.9 cents is $16,686,998.56.Number of shares on issue..427,871.758
eps 0.98....PE [adj] 3.98....NTA 6 cents per share.
Today's trading up date is a cracker.
https://stocknessmonster.com/announcements/atp.asx-6A1155190/

The PE sounds nearly too good to be true for a going concern.

Any drawback you could see?

[lorraina]

Yes they are a marine farming business.
Think of the issues NZK face.
Storms,whales,disease.
Currently the prices of pearls is very high.
What I think has been the game changer for ATP is their online sales, developed during Covid.
What we know is they will record an extremely healthy profit.
What they do with it we do not know.
With tax losses I think they will go for a  share buy back.
Other people think there will be a divie,which could cause the share price to sky rocket..
Maybe both ?
 

[CalBe55]

Yes they are a marine farming business.
Think of the issues NZK face.
Storms,whales,disease.
Currently the prices of pearls is very high.
What I think has been the game changer for ATP is their online sales, developed during Covid.
What we know is they will record an extremely healthy profit.
What they do with it we do not know.
With tax losses I think they will go for a  share buy back.
Other people think there will be a divie,which could cause the share price to sky rocket..
Maybe both ?
 

When pearl prices are very high, it's not very profitable to invest, I think. What does the price of pearls depend on? The covid has had an impact lately, I understand.

[lorraina]

https://mp.weixin.qq.com/s?search_click_id=3720350082945727145-1688034618769-1066943073&__biz=MjM5MDcxODY2MA==&mid=2664937932&idx=1&sn=fdcd6e6d2368e8a082c1d2e06e1f679a&chksm=bd6396678a141f711ee222bf551d7af24eb66bb0a2681d1dc8dce6bbe7c4f6ef1268cb3fccf7&scene=7&subscene=10000&clicktime=1688034618&enterid=1688034618&sessionid=0&ascene=65&fasttmpl_type=0&fasttmpl_fullversion=6744308-en_US-zip&fasttmpl_flag=0&realreporttime=1688034618871#rd


Fashion.
With the richer and more fashionable design of pearl jewelry styles, a group of young people are attracted by pearls, and the pearl consumption group is getting bigger and bigger .

I am expecting a great result announcement at the end of August.
With no bank debt and with plenty of cash,we may get a divie  or a share buy back, or both.

[lorraina]

What a stunner.
 https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02705133-6A1165663?access_token=83ff96335c2d45a094df02a206a39ff4

[Ferg]

Nice lustre to the result and nicely done you.  KPIs heading in the right direction, no debt, cash positive.  Clean accounts other than the negative foreign currency translation reserve.  Usual risks re FX exposure and biological assets.

I noticed they said this:

This profit result was aided by a reduction in aggregated capitalised costs of oysters across the four-year growth cycle. This current four-year cycle included the period of COVID-19, during which our Company implemented a low-cost model to ensure we were as lean as possible. While we recognise that this necessary approach is not a sustainable long-term strategy, it is important to note that the combination of higher average prices and reduced production costs contributed significantly to gross margin, and consequently, our profit result.

Bold part highlighted by me.  Is the unsustainable part a concern for future profitability lorraina?

[lorraina]

No I read if differently.
Their low cost model was not sustainable.
 "Company implemented a low-cost model to ensure we were as lean as possible. "
They have now taken on the extra staff they had managed with out.
This bodes well for the future.

[lorraina]

I started this thread on 23rd June,when ATP's share price was 4.69cents.At the start of the year the share price was 2.67 cents
On Friday the share price was 6 cents,an increase of 27.93%,and counting the divie of 0.0035cps the return is 28.67%.
Prices of pearls is still increasing,and with a director adding to his substantial holding recently,it looks as though the share price has a lot further to run.
Chart is positive.A very strong up trend.
We may not get further news until the AGM on 9th November.
I had intended to reduce my holding [to have a "free" ride], but have decided to stay fully on board.

[lorraina]

There are some very interesting posts on HC.
Well worth reading.

[lorraina]

Update.
427,871,758 shares on issue at 0.084 cents gives a market cap of $35.94 mil.[was $16.68 mil when I first posted in June].
 Since then ATP have paid a 0.003 cps divie.
EPS.0.020
PE .3.93
NPAT $9.08 mil.
Dividend 0.003
Yield 4.16%.
Pearl prices remain high.
Next update is their half year to end of December which will be announced in February.
Perhaps they will update at their AGM on 9th November.
 

[Hectorplains]

Great pick there, Lorraina.  They certainly are on a tear! 

Who'd have thought that pearls would ever be able to get beyond the 'pearl clutcher' stereotype and back into vogue.   

[lorraina]

Even funnier is the fact I bought shares in this company.
In the 1990s I subscribed to Market Analyst tip sheet.I cancelled my sub when they recommended this company.!!
I was right ATP was a disaster.However years later after they nearly went broke there was a changing of guard.
One director lent the company millions.When I saw they were repaying this loan very quickly,and their fundamentals looked really strong I started buying.Been buying up until February this year.
Had thought I would sell enough to have a "free ride",but with them paying a divie, the fundamentals still looking very modest,and the fact there is nothing I want to buy,I will continue to hold.

[lorraina]

Sold just over half my holding today at 8.05 cents.
Good profit and "free ride" with what I have left.
Just held too many..
Bought the funds back to NZ,and may recycle the funds into more 2CC. Will C..lol

[lorraina]

As expected selling just over have my holding,has seen  the Atlas Pearls' share price  keep on with its upward trajectory.
Currently trading at 10 cents.