Good Morning,
Well done to Patrick Dangerfield, for winning the Brownlow medal last night…
A great achievement, equalling the most votes on record per player in a season (35 votes)…
A great effort.
Before we talk markets, I wanted to talk Emefcy Ltd. (EMC) this morning…….
Peak Asset Management took stock in the recent $31.6M placement at $0.64 and hasn’t looked back….
For those who are new to the stock, Emefcy Ltd. specializes in developing energy-efficient wastewater treatment solutions.
The company’s innovative Membrane Aerated Biofilm Reactor (MABR) technology is installed at sites around the world (including in resorts, golf courses, rural villages and small towns).
We have all heard of “Software-as-a-Service” (SaaS), “Content-as-a-Service” (Caas)….
But have you heard about the new buzz word??
“Water-as-a-Service”…..
Yes, water is the new oil…
It is even the new gold….
For those who follow Cobalt, Graphite or lithium and think that global demand is large, clean water is the most demanded resource in the world.
And this will never change!
The ability of EMC to build a complete “end-to-end” wastewater solution and deliver affluent water for re-use in undeveloped regions, is nothing short of incredible and we see tremendous growth.
So don’t worry about oil… don’t worry about gold, lithium, cobalt or graphite….
Just worry about one commodity …. Water…….
From a technical view, the chart is on the verge or a large “breakout” from a an ascending triangle formation…..
A close above $0.935, will see the stock rally quickly and sharply towards $1.24+ (taking the lower part of the triangle at $0.64 less the top part at $0.94), projecting this $0.30 upwards from the currentbreakout gives us $1.24….
What are the short-term catalysts?
“Water-as-a-service” (Waas)…..
And just by looking at the chart, we expect this to occur this week……
So hold on tight, we’re about to see lift-off….
So back on markets….
Global markets fell overnight (Dow Jones -160 points) as the Presidential race “heats up”….
In only a few hours, over 100,000,000 viewers are expected to watch the first live debate betweenClinton vs. Trump and it will surely be an entertaining one…………………
Equities wiped out their monthly advance as Deutsche Bank AG tumbled to a record low on speculation Germany’s largest lender would need to raise capital.
Oil surged as Saudi Arabia’s offer to cut output opened the door to a future OPEC deal.
Investors piled into safer assets as Deutsche Bank’s plunge spurred a rout in global financial companies on concern the lender is struggling with tougher capital standards, negative interest rates and soaring legal bills.
"There’s a fear factor in the market that’s very sizable and it’s in the market overseas," Dan Fuss, vice chairman of Loomis Sayles & Co. in Boston, said in an interview with Bloomberg Television. "It’s people hedging as to what on God’s earth is going to come out of this U.S. election. That’s the concern."
The SPI is down 33 points this morning
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business
