Trade ideas
$PET - PHOSLOCK - Back above $4 and climbing! Phoslock has edged back above 40 cents with some nice volume behind it. Need to wait a couple of days to make sure it can hold it and build support from here. Volume and various indicators are looking good though. It was a 48 cent stock not so long ago so has some room to the upside. It's a business I have always liked - cleaning up the water ways of China - but the share price has been annoyingly erratic.
Phoslock Environmental Technologies Limited (ASX: PET) is an international environmental company specialising in engineering solutions and water treatment products to remediate impaired lakes, rivers, canals and drinking water reservoirs.
PET has its headquarters in Sydney, Australia with offices in Brisbane, Beijing & Changxing, China; and Manchester, UK. PWS is represented by licensees, distributors and agents in ten other countries including SePRO Corporation in the United States and HidroScience in Brazil. PWS has a number of marketing and co-operation agreements in China with various environmental companies and government agencies.
With the massive water remediation market in China, in 2017 Phoslock (Beijing) was formed. Our 100% owned subsidiary undertakes design, engineering, and implementation using remediation materials for rivers, canals, reservoirs and lakes along with construction of wetland areas. This is a significant broadening of the historical PET business and enables it to undertake a greater array of projects in China and elsewhere, supplying both services and materials.
PET owns the patent for PHOSLOCK; a unique water treatment product that permanently binds excess phosphorus in the water column and sediments. This in turn inhibits the growth of Harmful Algal Blooms (HAB) that lead to detrimental effects to both aquatic and human life.
Along with PHOSLOCK, PET also supplies:
1) Zeolites - a porous, natural material that can be applied to heavily polluted water to absorb nutrients such as nitrogen. Nitrogen is another important food source for the growth of harmful algae; and
2) Bacteria. - Certain types of bacteria can break down contaminants and organic matter that pollute water and cause human and water borne diseases.
PWS has a large multi-purpose factory in Changxing, Zhejiang province, China, 150km inland from Shanghai, which manufactures its patented technology, PHOSLOCK, along with nutrient binding materials (zeolites) and biological solutions (such as nutrient consuming bacteria).
$PET classic power play.nice little consolidation holding the 8 day and the push today. The birth of a leader.
PET weekly breakout on expanding volumebullish trend, sales momentum, rsi and macd bulish trend, multi month base.
$PET - worth some twitterbation overClearly someone liked the quarterly and stepped in today to break out this quality consolidation. Get on and see where the current takes you.
