At this point it's honestly less about the fundamentals of the...

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NoLeafClover

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22/05/24

16:24

Post #: 73958694
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Originally posted by mackbelio: ↑

Just having another read over the last announcement made by the company, given recent SP weakness.

I don't think the significance of this sentence can be understated - "given the Company’s
strengthened financial position, Atlas Pearls now has the option to adjust this historical practice and when
market conditions result in some bids at auction not reflecting value for some products, Atlas Pearls is now
able to retain the stock and focus on other sales channels that may offer higher returns."

This company repaid the last of their $4.5m debt in September 2022. If management hadn't organised their finances as well as they have, then they would have been forced to sell all of the 104,000 pearls that they took to the latest auction, at depreciated prices set by the buyers. Instead, they sold only 68,000 pearls, and kept the rest for future auctions and other sales channels.

I don't think there are too many companies that can afford to withhold selling 35% of their product at any given time, due to the company's financials being so strong.

This also sends a strong message to the buyers: "If you're not willing to pay a fair price for our pearls, then you aren't getting them."

Another important part of the last announcement is, "analysis of the results and bids at this most recent auction indicates that the price
achieved for A grade pearls, through this series of auctions below, was higher than all auctions except
November 2023, so the demand for high quality goods is still present."

Coupled with this statement is the continued improvement in the quality index of pearls harvested. If the quality of pearls continues to trend upwards, then this bodes well for pearl prices remaining high.

With cash on hand at present being one third of the market cap, this is a great time to be topping up after a 50% SP retrace IMO. I'm looking forward to the June 24 auction results as well as hearing about other sales channels that the company is exploring. GLTAH.

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At this point it's honestly less about the fundamentals of the company & more about the market's unwillingness to value the share price at a fair value to the company's earnings.

Management have done basically everything right operationally... which is why I believe they should look at a share buyback if the market isn't going to consistently value ATP at anything more than a ridiculously small multiple of its net profits/cash on hand.

Last edited by NoLeafClover: 22/05/24

ATP Price at posting: 11.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 14.5¢		Change 0.000(0.00%)		Mkt cap ! $63.61M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
3	35086	15.0¢

Sellers (Offers)

Price($)	Vol.	No.
14.5¢	59847	3

View Market Depth

No.	Vol.	Price($)
1	356419	0.140
6	152733	0.135
16	930054	0.130
10	343222	0.125
7	288733	0.120

Price($)	Vol.	No.
0.145	76262	3
0.150	313274	5
0.155	47465	4
0.160	280483	4
0.170	135787	2

Last trade - 09.45am 11/11/2024 (20 minute delay)

ATP (ASX) Chart

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