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Highlights
- Blue Star Foods Corp. (NASDAQ:BSFC) is an international seafood company.
- The consumer staple company launched its IPO in February 2020.
- Its adoption of Recirculating Aquaculture System technology could potentially disrupt the traditional seafood production methods.
Shares of Blue Star Foods Corp. (NASDAQ:BSFC) skyrocketed over 429% to US$10 in the premarket trading session on Friday on the back of positive news flow.
The Miami, Florida-based company sells imported premium seafood products and refrigerated pasteurized crab meat under its brands like Crab & Go, Good Stuff, Oceanica, and Blue Star.
Blue Star launched its IPO in February 2020. It sources crab meat mainly from Indonesia and the Philippines. It pays a premium to the local fishers to ensure sustainable harvesting practices. In addition, all its suppliers are certified by the British Retail Consortium (BRC).
The company employs the latest Recirculating Aquaculture System (RAS) for salmon farming in North America. The global salmon market was estimated at US$17 billion in 2021. The trading volume was around 3.7 million tons in 2021 and is expected to reach 4 million tons in 2023.
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Recent Developments
On January 13, 2022, it announced the release of a positive study report on its operations by Diamond Equity Research. The study noted that Blue Star’s entry into the RAS market has opened-up huge market opportunities for the company. The technology adoption could potentially disrupt the traditional way of producing seafood globally. The stock saw a high trading volume on Friday. The volume was 2,837,221 compared to its 90-day average of 53,346.
Blue Star Chairman and CEO John Keeler said: “This research report accurately portrays how we intend to go about building out the Crab RAS division of Blue Star, and how the assets of Gault put us in position to do that over the next several years”.
Blue Star’s current market capitalization is US$46.7 million.
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Financials
For the nine months ended September 30, 2021, its net revenue was US$8.34 million compared to US$11.4 million a year ago. Its net loss attributable to common shareholders was US$1.1 million or US$0.05 per share diluted compared to US$4.43 million or US$0.24 per share diluted for the same period in 2020. The cash and cash equivalents rose to US$0.203 million as of September 30, 2021, from US$0.56 million as of December 31, 2020.
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Stock performance
The stock traded in the range of US$5.29 to US$1.55 in the last 52 weeks. Its debt-to-equity ratio is 66.19%. The stock closed at US$1.9 on January 20, and it fell 9.52% in one year.
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Bottomline
Blue Star Foods’ early entry in the RAS market would give an edge to the company, say analysts. It also markets itself as an environment-friendly company, which will attract climate-conscious consumers. However, investors should carefully evaluate the companies before investing.
