BrainChip Holdings Ltd

Appointment of Non-Executive Director and Chairman: BrainChip Holdings Limited (ASX: BRN) announced the appointment of Stephe Wilks as a non-executive Director and Chairman of the Board. He has extensive public company board experience which will be useful to the company. As a Non-Executive Director and Chairman, he will represent all shareholders in the governance of the company and provide advice and consent for strategic decisions to further the company’s success. Moreover, the company had made an announcement that an agreement had been entered with SoftCryptum so that it can sell its AI-powered video analytics solutions to the government agencies which are present in Belgium, France as well as Switzerland.

AI Acceleration Chipset Forecast (Source: Company Reports)

Total cash receipts for the December 2018 quarter were US$227,000 (approximately AU$310,000). From the analysis front, the company has witnessed improvement in its cash cycle on YoY basis from 572 days to 194 days as of June 2018 over the prior corresponding period.

Introduction of Akida product going forward: Moreover, going forward the company is committed to the introduction of an Akida product that incorporates technology which benefits the customer with a high-performance, low-power NSoC for inference and autonomous learning in high-volume edge applications.

In addition to these factors, the company might also benefit with the help of its strategy of safeguarding the intellectual property. However, the stock performance remained subdued in the recent past few months with a negative YTD and one-month return of 21.43% and 12.50%.

Based on the afore-mentioned factors and decent outlook, we give a “Speculative Buy” recommendation on the stock at the current market price of A$0.075 per share.
 

Angel Seafood Holdings Limited

Decent Q2FY19 Activity: Angel Seafood Holdings Limited (ASX: AS1) operates as a holding company. The company, through its subsidiaries, provides fishery services. Angel Seafood Holdings farms and produces clean, green, and organic oysters. Angel Seafood Holdings serves customers worldwide.

The company recently announced that in accordance with Listing Rule 3.10A that 5,855,000 ordinary shares will be released from voluntary escrow on 21 February 2019.

Moreover, the company has increased water holdings to 70Ha across the Eyre Peninsula, allowing a growing capacity of 20-million oysters per annum and the ability to condition over 9 million oysters per annum.
 
 
Calendar Year Sales Trend (Source: Company Report)

The company achieved sales of $1,376,591 for the second quarter FY19, up 240% on the prior corresponding period. Total sales for the calendar year 2018 (CY18) were over $3 million, which represents a 64% increase on the sales achieved in CY17 and close to a 700% increase on the CY16 sales. 

What to Expect from AS1: Over the quarter ahead, the company will focus on husbandry of stock in the water and maintenance of the leased infrastructure. Due to the natural cycle of oysters (spawning) they generally become unfit for sale throughout January and February each year. The company anticipates sales to recommence in March and then strengthen into the last quarter of the financial year.

However, the stock generated a negative return of 3.45% over the last three months as at 15 February 2019 and its net margin stood at -77.4% in FY 2018 from -120% in FY17, showing improvement on a Y-o-Y basis. As at June 30, 2018, current ratio and quick ratio substantially increased from 2.42x and 1.52x to 6.24x and 4.83x, respectively, indicate decent liquidity position to meet its short-term obligations. Based on improving financials and current trading level, we give a “Speculative Buy” recommendation on the stock at the current market price of A$0.140 per share. 

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