Seems to me market is starting to value the legitimacy of ATP. So many positives going for this company now - No debt - First dividend paid (no policy yet but seems like could have one starting next FY) - Strong short/medium term prices for pearls, demand does not seem to be slowing - Increasing quality/size in pearls and room to grow considering still below the long term standard - Only publicly listed pearl trading company, if funds want exposure this is probably the only play - Trading at a low P/E (understandable given the market it is in), however if FOMO kicks in then this could really skyrocket
A positive guidance/earnings coupled with some bullish momentum makes this a very attractive short/medium term play. Long term the merit is there too, but I find as of now ATP is undervalued. Even if they were to only do another $25m in revenue for the year, at 35% EBITDA margin this puts them at $17.5m earnings. PE of 6 takes them $100m+. DYOR
ATP Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
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