Meibrys Viloria of the Kansas City Royals is doused with water by Salvador Perez as they celebrate winning. Pic: Ed Zurga/Getty Images
Investors say H2No to water stocks, majority down year-on-year
Food & Agriculture
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Water. It covers 71 per cent of our planet Earth and makes up about 60 per cent of our adult bodies.
It’s also at the heart of operations for about nine or so ASX-listed companies.
Most water stocks have been on a downwards trend over the past year — six of the nine have lost at least a quarter of their share price value in the past six months.
De.mem (ASX:DEM), a decentralised water and waste water treatment business, is down 49 per cent over the past 12 months, trading at about 17c.
The $18 million company is showing signs of recovery however. It’s half-year revenue, which it reported last week, is up 4,169 per cent to nearly $6 million compared with the previous corresponding period.
That came off the back of De.mem upgrading its revenue forecast by 20 to 25 per cent back in May. The company also this year moved into the food business.
Fluence Corporation (ASX:FLC) describes itself as a global leader in the delivery of decentralised water, waste water and reuse solutions, across the mining, electronics, chemicals, oil, gas, food, beverage and residential industries – even resorts.
It too has suffered a share price fall over the past year, dropping 39 per cent to 43c. It has a large global reach, being the result of a merger between ASX-listed Emefcy and US company RWC last year.
Earlier this year its chief Henry Charrabe told Stockhead the company had received a phone call off the back of the South African water crisis, asking whether their water purification units could withstand gunfire.
Two companies bucked the trend, however. Phoslock Environmental Technologies (ASX:PET), formerly known as Phoslock Water Solutions, went flying over the past year, up 154 per cent to 44.5c.
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Now with a market cap of $231.2 million, the Australian company’s mission to help solve global water quality problems is in full swing.
It reported its maiden profit in February and is currently helping clean up dirty waterways in Beijing.
Purifloh (ASX:PO3), formerly Water Resources Group is up 67 per cent year-on-year, riding to 50c on Monday.
The water purifier said it had taken “significant steps towards commercialisation” of its free radical generation technology, though revenues remained at zero and its full-year loss ballooned out past half a million dollars.
It also purifies air. In April this year it was testing a mailbox-sized air purifier that can kill airborne diseases like anthrax.
Blue Sky Alternative Investments (ASX:BLA), which has a water fund which invests in Australian water entitlements, is down 84 per cent year-on-year, although it is only a small segment of the company’s interests.
| ASX code | Company name | 12-month price change | 6-month price change | Last price | Price:20170905 | Price:20180302 | Market Cap |
|---|---|---|---|---|---|---|---|
| SDV | SCIDEV | -0.4736842105 | 0 | 1c | 1.9c | 1c | 5.1M |
| FLC | FLUENCE CORP | -0.3857142857 | 0 | 43c | 70c | 43c | 185.7M |
| DEM | DE.MEM | -0.4848484848 | -0.1904761905 | 17c | 33c | 21c | 18.3M |
| D2O | DUXTON WATER | 0.309178744 | 0.2431192661 | $1.36 | $1.04 | $1.09 | 120.9M |
| CLQ | CLEAN TEQ | -0.4865979381 | -0.6324723247 | 50c | 97c | $1.36 | 383.6M |
| CG1 | CARBONXT GROUP | -0.2714285714 | -0.1052631579 | 51c | 70c | 57c | 38.3M |
| BLA | BLUE SKY ALT | -0.834910123 | -0.8563786008 | $1.75 | $10.57 | $12.15 | 133.3M |
| PO3 | PURIFLOH | 0.6666666667 | -0.1071428571 | 50c | 30c | 56c | 13.6M |
| PET | PHOSLOCK ENVIRONMENTAL | 1.542857143 | 0.435483871 | 45c | 17.5c | 31c | 231.2M |
