CLWT:NASDAQ $2.50 China 5 MM float pollution play:
People asked on the board what the best China pollution investment is, and I found it: CLWT:NASDAQ. CLWT is historically profitable with a 5 MM float, $1.5 per share working capital and no debt. CLWT has capabilities in air pollution control and water treatment What makes CLWT a candidate to go to $20 IMO?
They have formed a joint venture (JV) with an Italian company, EccoMacchine, to manufacture water and wastewater treatment systems in a state of the art new plant that opens in September. The first wastewater contract ($1.7 MM) was just announced and is just the tip of the Iceberg. China needs HUNDREDS OF BILIONS IN WASTE WATER TREATMENT IN OVER 600 CITIES. The future revenue potential for CLWT could make this a 10 bagger stock IMO.
The past financials are irrelevant for CLWT IMO.. this stock is about the future revenue and earnings momentum driven by the Joint Venture. This stock will be a hot story for the next month IMO leading to the Septmeber Plant opening, and with the focus on China pollution approaching the Beijing olympics.
From last earnings PR:
As China, the world's biggest air polluter, is under great pressure to cut emissions of health- threatening sulphur dioxide which also causes acid rain and carbon dioxide which causes global warming.
To increase net income in future, we have invested in profitable companies in air pollution control business, we have signed the subscription agreement for acquisition of 20% equity interest with a company in desulphurization business in Aril 2007 and another one also in air pollution business is now in the final stage of completing the subscription agreement. To increase revenues in future, Pact Asia Pacific Ltd. ("Pact"), our subsidiary company, has set up a JV company with an Italian manufacturer and a Middle East engineering company to produce special water and wastewater treatment equipment and systems not only for China but also outside China markets. Moreover, we expect business generated from our new engineering company and Pact plus some acquisitions under discussion will also contribute to the growth in revenues and net income in future.
We are about half way to complete the restructuring of our company, and most of our new businesses and new investments are related to water, and air pollution solution business. Water and air pollutions are the biggest environmental issues on top of the global warming issue China has to face and is determined to combat them. We are confident that our business will pick up again once our new activities and new acquisitions are materialized and their contributions can be realized starting from the second half of 2007 to boost our bottom line and revenues."
