Two Stocks Making Money Under Water - AS1 And ATP

Angel Seafood Holdings Limited (ASX:AS1)

Founded in 2016, Angel Seafood Holdings Ltd is Australia based, world’s one of the leading aquaculture companies, engaged in harvesting and production of NASAA-certified, environment-friendly and high-quality oysters. The company ensures the organic distribution of oysters. The company operates through two principal subsidiaries namely Angel Oysters Australia Pty Ltd and Angel Seafood Infrastructure Pty Ltd.Â

Angel Seafood has successfully upgraded its water-based infrastructure with the current capacity to hold 20- million oysters. In Coffin Bay, the Company has transferred the lease water infrastructure to the Beacon Zone characterized by the high current water, allowing optimum growth of oysters. Following the recent announcement of the acquisition of prime water leases in Coffin Bay, Angel is now able to deliver to market over 9-million oysters per annum.

Angel Seafood recently announced installation of SED Graders capable of processing 2,500 Dozen oysters per hour, large capacity oyster storage refrigeration room and housing two major oyster tenders at Coffin. The company also updated about its two major timely and budget-friendly projects for efficient oysters handling, projected to be completed this year: oyster processing facility expansion in Cowell and the fully accredited export site in Port Lincoln. Spat mortality in deliveries since April 2018 continues to be in the low range, with higher than projected growth rates.

AS1 closed the day’s trade at A$0.130, up by 4% on 22 January 2019 with a market capitalization of $15.77 million and 126.19 outstanding shares. The share price has fallen by 7.4% till date this year.

The investors may want to keep an eye on AS1 stock. The company seems well-positioned to expand its market presence by supplying high-quality oysters to meet the significantly growing demand for Angel oysters. Further, director buying the stocks of the company highlight the potential to some extent.

Atlas Pearls Limited (ASX:ATP)

Atlas Pearls runs a jewellery business and is one of the world’s leading eco-pearling companies. The company specializes in pearl farming of silver and white South Sea Pearl. The company is also engaged in designing and distributing pearl jewellery such as Earrings, Studs, Rings, Bracelets, Pendants, and Cufflinks. The Company operates five farms scattered throughout the nutrient-rich waters of Bali through to the West Papua. Several concentric layers of aragonite crystal deposited around a circular nucleus are inserted into pearl oyster by a grafter.

In 2018, Atlas Pearls faced a challenging task of looking after a large number of oysters while harvesting smaller pearls, resulting in revenue dip to $14.2M as compared to the $16.3M in the previous year. However, the company was well positioned to handle the challenges including that of reduced pearl size of harvested oysters. Clients agreed to secure their purchase position via trade loans granted to protect their pearl supply, hence providing bridge funding for managing the transition until oysters seeded in 2018 and last year were harvested. The Gross Profit dipped from $7.4 million in FY17 to $5.3 million in FY18. While administration, finance, and marketing costs were reduced by almost $1million, Net Loss After Income Tax of $1.9M was reported.

However, a 15% jump in seeded oysters offers a notable upside. The company reported a sustained improvement in oyster survival rate at spat and juveniles’ stages and further improved post-seeding nuclei retention rate. The company enjoyed strong demand and firming up of prices for the Pearls.

The price of the scrip is on an upward trend over a month, surging by 13.33%. The stock has offered a YTD return of 6.25% to its shareholders till date. ATP soared by 5.882%, settling the day’s trade at 1.8 cents on 22 January 2019 as compared to the previous close of 1.7 cents.

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