Without getting to bogged down on the fundamentals, Phoslock (PET) definitely has load of potential in a world where China gets serious about pollution and waterway remediation. The marketcap probably got way ahead of itself based on that potential and has now come back to reality of the present moment. Covid putting environmental issues on the backburner, growing tensions with China and institutional investors wanting to see a stable balance sheet over a period of time mean PET is a bit of an ugly duckling atm. Raising Capital at 50c and then subsequently downgrading profit guidance soon after has also put a few question marks over management. Regal Fund Management are on the register and have recently slipped below the substantial holding threshold. If they are selling down the shareprice could remain suppressed for quite some time. Good news on new contract wins required.
