The Motley Fool recently published an article titled “3 Top Stocks Under $10.”
In the piece, the writer discusses the potential answers to the question: “Why do some stocks trade in single digits?” While he notes this is often due to a company being a “loser,” he also remarks that the market is not “omniscient.” Sometimes good stocks are surprisingly cheap for a number of reasons.
For example, he mentions the stock of Rolls-Royce (OTC: RYCEY) getting hammered by COVID-19. Then there’s a company like micro-cap biotech Pieris Pharmaceuticals (NASDAQ: PIRS) that the writer feels has amazing news that the market is simply oblivious to. He also mentions Kahoot! (OTC: KHOT.F) as an example of a stock that isn’t cheap at all, yet its share price is a bargain.
Another company we feel would sit well on this list is OriginClear, Inc. (OTC Pink: OCLN), an innovative company excelling in the industrial water sector, yet flying under the radar.
In today’s shifting economy, accredited investors—especially real estate investors—are looking for assets that can grow faster than inflation. They are learning that water is a stable and high-yield asset class that does especially well in hard times.
According to OriginClear, Inc. (OTC Pink: OCLN), water companies are historically a very “safe” investment, virtually recession-proof as unregulated water rates are growing faster than inflation, and this is good for the industry.
With the rights to patented water systems technology after the acquisition of a 25-year-old company in Texas with a sterling reputation as a builder of custom industrial water treatment plants (and generating close to $4 million per year in sales while flying under Wall Street’s radar), OriginClear is leading the fast-growing business of helping industry cope with its own pollution.
Water in our country is in trouble. Flint, Michigan is far from alone. Cities can’t keep up with water needs, and the funding gap is growing by more than $100 billion a year… And climate change means the country is set for longer and harsher droughts in the future. We can’t afford to waste untreated water.
The solution? Self-help. Faced with broken municipal systems, businesses all over America are taking their water in their own hands with the help of advanced, compact systems from pioneers like OriginClear (OTC Pink: OCLN).
But that can be expensive for companies that never set out to treat their own water, like breweries or auto dealerships who suddenly find themselves burdened with the task. That’s where Water on Demand™ comes into play. Water is a risk that smart managers will outsource, especially as inflation worsens. Outsourcing through Water on Demand means that these companies do not have to worry about the problem, either financing it or managing it.
Water outsourcing through managed services is very, very needed. Like an internet service provider develops and manages a company’s website through a service level agreement, the Company is doing the same with water treatment. In the water industry, when applied to outsourced water treatment, these are known as Water Purchase Agreements (WPAs).
With water treatment as a service, the customer can easily sign a service agreement and get going. And if they don’t pay, the equipment simply gets returned. This simplifies the whole financing game tremendously.
With the help of their breakthrough technology and their own funding capability now in development, the high-tech veterans at OriginClear are transforming the slow-moving water industry, just like the hotel industry before Airbnb (NASDAQ: ABNB), and the taxi industry before Uber (NYQ: UBER), by making FUNDING much easier and revolutionizing how water deals are done. Their finance company has already received preliminary commitments for $3 million, with more on the way.
This is financially and operationally attractive to industrial, agricultural, and commercial water users, while OriginClear can look forward to speeding up deals and many more revenue streams from providing water treatment as a service.
Lack of funding is a BIG barrier to entry for other companies in this profitable industry. No capital required equals fast deals, and the rental/usage model makes credit easy. This total outsourcing of water treatment creates long-lived, high-loyalty customers.
And the company is already in consumer spaces. In 2020, the Company proved their ingenuity and resilience as they turned the pandemic on its head by showing they could create a water career for COVID-orphaned entrepreneurs with their revolutionary Pool Preserver™ rental system and Waterpreneur™ training.
OriginClear’s primary revenues are from its Texas base, with revenue for the year ending December 31, 2020 increasing by 14% to $4,101,131, compared to $3,587,894 for 2019, despite Covid interruptions. Gross profit for the same period increased by 65% to $611,775 compared to $370,866. Loss from operations increased by 21% to $4,711,238 compared to $3,908,238 for the prior year, reflecting aggressive ramp-up of the company’s FinTech for Clean Water™ program.
OriginClear’s market capitalization is $16.3 million, and trading volume is about 134,000 shares daily, while non-objecting shareholders exceed 8,000.
The world of water treatment as a service is expected to help the water industry explode, and OriginClear, Inc. (OTC Pink: OCLN) intends to be a leader in this promising space.
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