Narratives are currently in beta
This is a micro-cap stock that has barely any sell-side broker coverage, and its core business in providing friction reduction for oil and gas companies in the US will be a big winner given Trump is very pro-oil and gas. However, where we see material value that is under-appreciated by the market is their technology which can treat hazardous man-made chemicals known as Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS).
PFAS are being recognised as potentially as dangerous as asbestos, and in the US they have passed legislation to mandate that by 2029 the level of PFAS in drinking water has to be reduced dramatically. That will create a US$250 billion market opportunity to test and remediate the issues of drinking water in the US alone.
At the moment, SciDev’s water treatment technology is 25 per cent of the business, but in my view, it'll be more than half the business in four years’ time. This is a business I think can grow to many times larger than its current size.
How well do narratives help inform your perspective?
