Angel Seafood Holdings Limited (ASX: AS1)

AS1 is Australia’s biggest producer for fresh, clean, green, certified organic and sustainable pacific oysters and is organically and sustainably certified by National Association for Sustainable agriculture, Australia (NASAA) and ‘Friends of the Sea’ organisation, respectively. Its market capitalization as of 22^nd October 2021 stood at AUD 22.62 million and the share price stood at AUD 0.14 per share.

Financial and Operational Updates: As announced on 21^st October 2021, it will release its 3QFY21 Results on 26^th October 2021. On 27^th September 2021, Tiga Trading Pty Ltd and Thorney Opportunities Ltd both changed its substantial shareholding from ~13.08% to ~14.58%, individually. On 14^th September 2021, Valley Vino Pty Ltd changed its substantial shareholding from ~11.041% to ~19.946%. As per the release of 4D and Half Yearly Report and Accounts on 27^th August 2021, it showed a substantial increase of ~46% Y-o-Y in revenue and reported as ~AUD 3.63 million for 1HFY21 versus ~AUD 2.48 million for 1HFY20. Transformed its Net Losses after Income Tax of ~AUD 0.16 million in 1HFY20 to Net Profit after Income Tax of ~AUD 0.48 million in 1HFY21. It also recorded a ~178% of increase Y-o-Y in EBITDA and reported as ~AUD 1.3 million for 1HFY21. Cash at the end of 1HFY21 was reported as ~AUD 2.49 million as of 30^th June 2021 versus ~AUD 3.17 in PcP. It was stated on investors presentation:

• Pilot launch of D2C (Direct to Consumers) sales channel by the name of Halo Club is on the cards.
• Sought a new debt facility to the tune of AUD $1 million from NAB towards working capital.

Technical Analysis: AS1's prices have been consolidating within a range between of AUD 0.115 to AUD 0.185 since the beginning of 2021. Though, CMP has crossed 21-period SMA but is unable to sustain the levels for long-term and it is struggling to cross 50-period SMA, on a weekly chart. The momentum oscillator RSI (14-period) is trading in a mid-range at ~49.101, giving a directionless signal. The support level for the stock is placed at AUD 0.125 while the key resistance is at AUD 0.155.

The company is expected to announce its 3QFY21 results on 26^th October 2021, which may increase the volatility in the stock due to recent lockdown situation. The leading indicator RSI (14-period) is also suggesting an indecisive stance. Hence, we recommend a ‘Watch’ position on the stock considering the support and resistance level. The stock was analysed as per the closing price of AUD 0.14 per share, as of 22^nd October 2021.

Weekly Technical Chart – AS1

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

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