The company that I’ve invested in for the long-term is 374 Water Inc, ticker symbol SCWO. They are a global cleantech, social impact company whose mission is to preserve a clean and healthy environment that sustains life. Their product that they’ve developed is a system for safely and cleanly extracting water from waste water, which they coin "supercritical water oxidation." The physical-thermal process, powered by water and air, completely eliminates organic compounds. At the same time, their processes allow for the net generation of energy as well.
Some of their current use cases include the agricultural industry where waste run-off can be fed into their system to clean the run-off before it gets put back into the ground, cleaning of industrial waste sludge, and landfills where dirty water often is produced and runoff into the environment. Their system is built in one of those 40 foot sea cans, making it super easy for companies to deploy them onto their sites with existing transportation infrastructure.
7 months ago they got elevated to trading on the Nasdaq which has really helped give it more exposure in the investing community. With second quarter 2022 revenue of just over $1 million, 374Water is in an early stage of commercialization, so it is still a small-cap stock with lots of risk. I purchased shares at around $3 and the current price is down to $2.89, as most small-caps have been hit hard during the broader market sell-off. I expect to continue seeing this rollercoaster action, which is why I’ve allocated it to my long-term portfolio and I’m not investing a significant amount into it, as I normally only allocate at most 8 - 10% of my portfolio to small-cap stocks. In fact, outside of a couple of water stocks, I mainly invest in the Vanguard small-cap ETF as it provides less of the rollercoaster and more diversification…plus as it’s Vanguard, they have experts that look into this and I don’t have to research so many small-caps at any one time.
2 months ago, 374 Water announced a 4,756% increase in revenue for the third quarter jumping to $900,000 from $19,000 the year prior. While this is great news and they are on the right track, these often happen when small cap companies close one big new client, which can skew their numbers for that one quarter.
All this being said, I’m taking the long-term view that water is going to be an even bigger issue and any company that has proven technology to make clean water from waste water is one that I look to invest in.
#stockmarket #investing #waterindustry #stocks
