ATP - Atlas Pearls

[The Triangle]

I wonder what they are worth really? A lot of that will be the commercial boats and barges to support the operations, may not be worth what they are on the balance sheet for? I also remember thinking the PP&E spend seemed stupidly low for such a capital intensive business, either the boats are clapped out, old local boats, or they are going to have a huge jump in CapEx sometime in the next few years.

As I said, most of what you need to know about the biological assets is in the notes to the financial reports, its sobering how many ways things can go wrong when you read thru it.

The TLR is simply too much downside risk.

How low will she go? Big volumes today!

 

[Country Lad]

Ignored a couple of triggers because I know nuttin about pearls except that Country Lass's cost u bundle. Promising P&F pattern as well.

 

[rcm617]

Has had a great HY report with gross profit up 191%. Looking like the pearl business is pretty profitable at the moment, but a bit of a risky business longer term.

 

[rcm617]

In their AGM they have been confident enough to announce that they will pay 50% of normalised profits as dividends. Considering that their market capitalisation is only 3 times their operating cash flow should result in some good dividends coming up, and might give a bit of a lift to the share price. They also have no debt and 17 million cash.

 

[rcm617]

They have an auction coming up at Kobe early December. If they can maintain prices should hopefully give them a lift this month.