Evoqua Water Technologies: The Water Cycle And Life Cycle Are One

11/30/20

By Looking For Diogenes, SeekingAlpha

Summary

  • I will first reacquaint my readers with the first article I shared about Evoqua in February 2020.
  • The 4Q and Full-Year 2020 Results will be shared for their implications for Evoqua's future merits as an investment.
  • I will cite the events we should expect as we wait for the 2nd Quarter of 2021 financial results.

The Water Cycle and Life Cycle Are One

- Jacques Cousteau

(Sourced from Evoqua's Website)

On February 25, 2020, I introduced Evoqua Water Technologies (NYSE:AQUA) to my SA readers. At the time of this publication the stock was trading for $23.89, and subsequently it has traded as high as $28.38 (11-16-20). However, on November 17, 2020, when they reported their 4Q and end-of-year financials, the stock traded down to $25.90 on heavy volume. Since this decline the stock has regained to $27.00 (11/24/20), and in my opinion, investors made the wrong assumption about the details of their latest financial results. My initial opinion and article position: I think the company is on the right track for not only retracing to the $28.38 level and higher, but I also think the future is bright for investors considering taking a long position in the stock. Therefore, with this article I wish to recap the earlier article and go into details about the new factors that are in play for Evoqua moving forward.

For those who might not have read my February article, I would highly suggest you take the time to read this article. I provide some of the historical information about the previous attempts to roll up the water industry into conglomerates, where the results were disasters such as Enron! Many forget part of Enron's debacle was their involvement in the drinking water supply for massive number of people from around the world.

Today the trend is for divestments into stand-alone companies who service, manufacture the products and build out the water systems for our drinking water needs. Evoqua is one of the more successful such operations in this vital human need for sustaining a human's life.

READ FULL ARTICLE HERE

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