New newing report is out, page-11

Some great reading from Graeme Newings latest Report on PET.

DYOR and also read report in full if you like. These are some parts from it.

PET

"On the runway to greatness

• The positive announcements are coming thick and fast. On 1July we were told the Lake Xingyun project had been expanded to include theentire catchment area, and on 10 July the quarterly was released to reveal acash position of $17.9m, well above my estimate.

My central valuation has risen to $2.87. ( Double from where we are now. In my opinion Newing is very conservative - Titanium8)

• Stepping back a bit and looking at the bigger picture, hereis a company that:

o is financially strong with no debt;

o is run by a demonstrably competent board and management;

o is owned 32% by said individuals;

o has key Chinese board members, managers and shareholders;

o has a strong connection with the largest water company inChina;

o has a proprietary product which efficiently solves apressing environmental problem affecting many waterbodies globally, withoutcollateral damage;

o in other words, has a potentially trillion dollar marketall to itself;

o has a high profit margin and a very high return on equity;

o could double earnings every year for some years, andbeyond that …

o can continue to grow strongly for decades to come;

o has a profile of increasingly recurring revenues;

o ticks all the boxes as an ethical investment.

• I see PET as a blue chip in the making.

A peek at the longer term

The potential market size for phoslock is probably in thetrillions of dollars, and there is no competitor that can come close. Ofcourse, much of that market will never become available because of othergovernment priorities, and that which will become available will not all becaptured by PET. Nevertheless there is every chance that the stock will becomea low-risk, dividend-paying, globally oriented, environmentally-impeccable,bluechip investment with no debt, substantial recurring revenue and goodearnings growth for many decades to come. In due course its market cap could bein the tens of billions."

DYOR My opinion only. This is not financial advice.