Key insights
- The author discusses a small-cap water filtration company, NEPH, poised to benefit from the impending global water crisis and potential regulations on 'forever chemicals'. Despite positive attributes like revenue growth and no debt, the company faces short interest, possibly due to its small size and low trading volume. The potential for growth in the water filtration industry offers a slightly bullish outlook.
We are at the beginning stages of a global fresh water crisis; with many experts believing it will go into full swing in the 2030s.
Since, I have no way of solving the crisis, I figured I would profit from it. I found a relatively small company trading at $3.11. They make water filtration systems for hospitals and have recurring revenue model selling replacement parts. They have no debt and made a million in revenue last year however, larger firms have short interest in the company. Why?
I get that they have small cap with a low trading volume which makes them a prime target for shorting. However, they are industry that is growing, with no debt and their revenue has grown about 30% each year. Plus with the government potentially banning forever chemicals in the water, they could have a chance to explode.
Did I stumble into something or am I crazy for wanting to buy $3k worth of it?