“Why Warren Buffett … The Obama Administration… T. Rowe Price … Even Big Oil Now Crave This $8 Company’s Revolutionary Technology
“… And how following their lead – right now – could easily triple your money within the next six months!”
So begins the new version of a teaser I’ve seen for months but never personally written about (this one was covered on the forum in a previous iteration). And why did I choose to write about it this time?
Well, there’s some company-related news that makes it relevant today — but I mostly got off my duff because they’re throwing out Warren Buffett’s name, which got them a lot more attention (if the emails from my readers are any indication) … and in so doing, they’re really pushing the envelope of legitimate name-dropping.
This is a water-technology company, and the ad is largely about desalination. They go into quite a bit of detail about the water shortages in the world, the declining aquifers and reservoirs, and the desperate need for more water for agriculture and various industrial uses around the world, including energy production and refining (let alone water to actually drink, which is a very small percentage of total use). I won’t bore you by repeating all that, though you can see the ad here if you want to catch up with the class. They call big oil’s interest in water and the growing demand that will place on this company’s products the “energy water nexus”
The ad, by the way, is from Nick Hodge for his Alternative Energy Speculator newsletter, which I’ve covered from time to time during its young life (I think it’s been around for a bit over a year), and as I said, they’ve been pushing the same ad in different forms for a couple months now (the shares have been mostly bouncing around between $6-8, though they did briefly dip down close to four dollars).
Now, almost all the ads I write about have a heavy dollop of hyperbole, and they usually try to draw a big picture of insatiable world demand and then cleverly channel that demand, no questions asked, straight into this company’s hypothetical coffers — and this one is no different.
“You see, thanks to one currently under-the-radar company’s revolutionary technology, we could soon feasibly create safe drinking water for every single person on the planet.
“In fact, it’s so cutting-edge that Forbes recently claimed, ‘[This] innovative technology can redefine the rules of supply and demand and change the marketplace.'”
Sounds good, right? But that word “feasibly” is a big one … and the quote from Forbes? That was about a different technology, a water harvester made by Aqua Sciences (a private company, I think) … still, the article did say, “Solutions like those developed by Aqua Sciences show that truly innovative technologies can redefine …” bla bla bla, so perhaps they can get off on a technicality.
They continue to push the envelope, though, when they bring in Warren Buffett — who owns only two companies that could feasibly be described as being in the “water” business, and this definitely ain’t one of them — and tease him and some other biggies, as they did in that first paragraph.
“I’m talking about firms like Berkshire Hathaway and T. Rowe Price… heck, even the Obama Administration and Big Oil are drooling over this company.
“And they’re all loading up for different reasons:
* “Uncle Sam’s eagerly depending on this technology to save Americans billions of dollars every-year in utility costs.
* “Big Oil’s investing to ensure their production costs stay low for decades to come.
* “The financial firms are beefing up their positions… firms like T. Rowe Price, Vanguard, and Berkshire Hathaway – who recently brought their stake in this technology to 32 million shares.”
Notice how they said “stake in this technology” instead of “stake in this company?” Yep, that’s because Berkshire Hathaway doesn’t own any shares of this firm (or at least, it didn’t own enough to warrant reporting those shares as of it’s last filing — and if Nick Hodge knows more than the SEC about Berkshire’s holdings, there’s a bigger problem).
Of course, Fidelity and T. Rowe Price and Vanguard all show up on the list of institutional investors for this company … but they pretty much own shares of almost every public company in the country, and their stakes here don’t appear to me to be notable. The company that appears to be the solution to this teaser, in fact, only has about 34 million shares in its public float (50 million shares outstanding in total), only half of which are owned by institutions.
Did we get into who the company actually is yet? No? Well, I guess I’m moving backwards again today, but let’s look at the actual details that do pertain to this company:
They call the firm “An All-Access Pass to the World’s Water Supply” because they can make desalination more feasible by cutting the cost…
“One company with the technology to increase desalination capacity while cutting desalination costs by as much as 83%.
“That’s right, this company’s exclusive product provides a sustainable, secure supply of water for just $0.70 per cubic-meter… “
And a bit more …
“And there’s little wonder why this company’s market share rocketed 151% between 2006 and 2007 (and that was after a 51% leap between 2005 and 2006).Are you getting our free Daily Update
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“Now, this company is poised to dominate the entire water industry. No other company has the technology to compete… ”
More? You got it!
“But this one company (whose name I’ll give you in just a moment) has uncovered a method for extracting more water for less energy.
“And now this company… and it’s shareholders are making a fortune off the energy companies, governments, and agricultural industries desperate to get their hands on this breakthrough.
“GE, Veolia, and Doosan (just to name a few) are already in. And if you want to secure your share of this thing too – well, there’s no time to waste.”
The GE, Veolia and Doosan stuff is, at least, true and honest — those are three of the 80 or so partners they work with (and it would be awfully hard to be a supplier in the water business without working with at least GE and Veolia).
“This company is solidifying its global water mo