And we thought PSY was the only Internet-of-Things stock...
Pacific Environment (ASX
EH)...
Like PSY, PEH has developed sensitive devices to detect elevated levels of particulates in the air.
Whilst PEH devices may not be as sensitive and PSY's LumiMEMS Reader, PEH's Envirosuite 2.0 platform could be a game changer of similar magnitude.
Envirosuite 2.0 not only detects levels of gases, dust and chemicals, but also airborne bacteria, viruses and odours.
What's more, the devices are internet-connected to report data in real time and send email and text alerts when an elevated reading is noted.
And not only that, but
the software connected to the physical monitoring devices actually tracks and locates the source of the emission.
This function is invaluable to locate and remove the problem, and potentially to prosecute offenders.
The company recently stated that it is seeing significant growth opportunities for its expertise and technology; a comment that has since been validated with its first international contract for the Canterbury Council in New Zealand:
Every council and local government on the planet has a use for PEH's technology... and with further international sales in the pipeline, PEH's market cap of $9 million starts to look a little ridiculous:
This contract was followed shortly after with the company's biggest ever contract win of $4 million, with a NSW Transport Authority:
PEH is already profitable, even before taking these latest contracts into consideration:
In addition to councils, PEH could have an important role to play in hospital across the world.
It is essential that a sterile environment is maintained and that there are no increases in dust and associated mould, fungus and bacteria levels to ensure infection control.
While best practice guidelines for infection control require the use of some form of monitoring during all work, previously it has been difficult to identify potential infection issues until after patients present with symptoms.
Infection control is a major issue in hospitals, and PEH technology is designed to detect airborne pathogens and provide automated instant alerts via text and email.
With EnviroSuite’s air quality management system, specifically configured for hospitals and infection control, it is now possible to deliver information to the people that need it most, in real-time.
EnviroSuite provides the following functions:
- Alert hospitals to potential infection issues before patients are affected
- Monitor indicators of infection in real-time with an innovative web-based interface
- Instantly issue SMS and email alerts when normal background levels are exceeded
- Issue automated regular status reports by email that summarise measured data, greatly improving the efficiency of internal reporting
PEH also has the oil and gas sector covered, which interestingly enough, is the first sector targeted by PSY and its LumiMEMS reader device.
The EnviroSuite 2.0 modules monitor, report and forecast air quality and noise impacts from oil and gas extraction and production operations, allowing automation of activities that used to take weeks to complete.
EnviroSuite 2.0 alerts operators to current and future compliance risks associated with activities in the oil, gas and energy sector, and is
designed to notify when environmental, health and safety thresholds surpass the ‘trigger point’.
The alert function allows for on-the-spot action for exceedance of compliance thresholds.
It almost makes PSY seem a bit backward!
I'm not making the same mistake I made with PSY by free carrying just because I could, despite know it was still well below true value.
As things currently stand, I think fair value for PEH is a $45 million market cap, or 45c per share, and I don't plan on taking any profits below 20c.
