Energy Recovery (ERII) is the major position for our family office. The stock more than doubled since I wrote the thesis for SumZero and SeekingAlpha about a year ago. However, I believe we are still at the early innings.
Yesterday I recorded a video interview with SumZero CEO on ERII for their
video channel. SumZero is the largest institutional investor idea platform. It
was founded by Winklevoss, who co-founded Facebook with Zuckerberg. The link to the video is below.
ERII is USD 1.2 billion US-based market cap, growing at 20-25% pa, gross margin of 70%, no debt, and USD100 million in cash. ERII has revolutionized the desalination industry, where it has a 100% global market share for large projects. They have not lost a major contract for seven years. They are now introducing their unique technology in other industries. The growth is due to accelerate significantly in the coming quarters. They managed to revolutionize and monopolize one industrial segment; they are now starting to repeat this strategy in three other segments.
In the video, I tried to summarize the ERII investment thesis. We are very bullish on ERII.
Disclosure:
The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice.
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