After the SP headed south for quite a few months, I feel like...

After the SP headed south for quite a few months, I feel like this is more than a temporary pull-back from the SP peaking 6 months ago. It's good to see most posters here are still fairly positive. I was lucky to enter this stock at a relatively low price a few years ago and have been very grateful for what the company has rewarded the long term holders with. And in my view there is little doubt that the company will keep growing but to me it also comes down to how fast they can grow and how the rate of growth aligns with the SP.

The growth from Chinese market has done most of the heavy lifting in the past two years, and like many people in this forum I believe it's only a matter of time before more contracts are announced. However, like Laurence Freedman said in an interview, although Phoslock is a quality product with proven track record, the key to success in China is the relationship/local connection. The over-reliance in China (or should I say a couple of Chinese directors) is certainly a concern that can't be overlooked, but so far it seems that they have managed the relationship very well.

The presence of Phoslock in international market has spread across many years whilst most of the time the sales figures have been underwhelming. To be honest, I am a bit skeptic about the $130m pipeline given what they did last year and the year before. It will require a growth rate that is even higher than what they have achieved in China. I really hope I am wrong, maybe the new CEO and the new product can really make a revolution in the international market.

I am not a naturally optimistic person and always try not to fall in love with the stock when holding it for a few year.

All in my own opinion, to finish if off with the quote from Newing's report.

"The company has a proprietary product which solves a pressing environmental problem affecting many waterbodies, without collateral damage; in other words, has a very wide moat with a potentially trillion dollar market all to itself; is run by a competent board and management; is still owned 25% by said individuals after recent sales; has key Chinese board members, managers and shareholders; has a connection with the largest water
company in China; is financially strong with no debt; has a high gross profit margin and a very high return on equity; could continue to grow strongly for decades to come; has a profile of increasingly recurring revenues; ticks all the boxes as an ethical investment."