Investors say H2No to water stocks, majority down year-on-year
Food & Agriculture
Food & Agriculture
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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.
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.
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.
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.