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DEM - De.mem Limited

Discussion in 'Stocks 0-H' started by System, Feb 19, 2017.

  1. System

    System Administrator

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    De.mem Limited was incorporated for the primary purpose of designing, building and operating systems and technology for de-centralised water treatment sector in the Asia Pacific region.

    The company's de-centralised water treatment systems are used to provide potable water or to treat waste water so that it can be recycled or discharged in compliance with government standards. It is currently providing water treatment systems to customers in both the industrial and municipal/residential sectors in Singapore and Vietnam, and intends to enter the Australian market after the Company's admission to the Official List. The company is targeting entry to the Chinese market during the third quarter of 2017.

    It is anticipated that DEM will list on the ASX during March 2017.

    http://demembranes.com
     
  2. greggles

    greggles I'll be back!

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    De.mem Limited looking like it could have bottomed out at 20c after an unfortunate 12 months since it listed last year. It touched 45c after debuting on the ASX but has since fallen to 20c.

    This morning the company announced that forecast revenue for the 2018 calendar year will be between $8 million and $10 million, compared to 2017 calendar year revenue of $2.9 million. 245% year on year growth isn't bad at all.
    So, it seems like there is no capital raising on the horizon for DEM. Share price is up 28.63% this morning to 26c.
     
  3. greggles

    greggles I'll be back!

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    Something up at De.mem Limited. Lots of volume this morning followed by a Pause in Trading announcement which was followed by a Trading Halt which stated that an announcement is pending.

    Looks like there are some loose lips involved here and if I were a betting man I'd say we're looking at a positive announcement shortly.

    1.8 million shares traded this morning and a 37.1% gain to 24c. It certainly doesn't sound like bad news is coming. :D

    big.chart-DEM.gif
     
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  4. Dona Ferantes

    Dona Ferantes

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    well picked ...... an acquisition. But is it transformative? Yes and no!
    acquisition of a 75% stake in industrial waste water treatment company Geutec GmbH based in Essen, Germany
    ● Geutec develops, manufactures and sells innovative chemicals-based products and solutions for industrial waste water treatment to customers across Germany and Europe
    ● Geutec’s strategic know-how and product range is highly complementary to De.mem’s innovative membrane solutions. Its range of water treatment chemicals including coagulants, cleaners and antiscalants is often sold in conjunction with membranes
    ● De.mem’s existing customer base, particularly clients from the mining and resources sector, has expressed strong demand for products typically sold by Geutec
    ● Furthermore, Geutec brings a strong, long-term customer base into the De.mem group as a platform for expansion into the European waste water treatment market
    ● Consideration for the 75% stake is approx. A$915,000 in cash, or ~ 5x normalized earnings before ta
    x
     
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  5. Dona Ferantes

    Dona Ferantes

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    and found this blog : http://justcultureinvestor.blogspot.com/2019/07/DEM.html

    "" am currently trying to better predict companies at or just before they reach an inflection point, DEM is in my opinion, just such a company. The market is assigning a market cap of just $25m, which is only 6 million higher than when they IPO’d back in 2017. Since then they have proven and increased their product offering, increased their revenue by 3657%, purchased a 32% stake in Aromatec, expanded into Australia through an acquisition (potentially again) and then further expanded within Australia by opening offices in Adelaide and Melbourne. The Australian revenue since DEM has taken over have increased by $3m (42.8%) and their new contracts to date (July) are 40.2% higher than the whole of CY2018. Whilst they have not yet produced a profit in any quarter, they got extremely close in Q2 and Q3 last year and I believe they are currently sitting just a stone’s throw away from hitting this massive milestone. However, due to this, I would recommend that only those with a considerable risk tolerance begin their own analysis, a lot of things need to come together for this thesis to work out. ""
     
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  6. aus_trader

    aus_trader

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    Entered as one of the top picks for CY2020 competition. A junior stock in the water purification space. Based on some of the big winners of 2019 in this space (PET, SDV), this stock has a good chance of getting a boost to share price as well since it is flying under the radar at the moment. In terms of the advanced Osmosis water treatment technology used by DEM, it's potential to join the leaders in this space should not be underestimated:

    upload_2019-12-28_0-25-2.png

    Much lower valuation compared to peers:

    upload_2019-12-28_0-31-6.png
     
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  7. jbocker

    jbocker

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    Thanks for the info @aus_trader.
    A few years back I looked for some listings that had water rights. Found Blue Sky (BLA) which had some associated interests, wasn't much else about. BLA has dropped considerably at a healthy increase over a few years. I got out earlyish and didn't fully enjoy the ride BUT missed the razor slide.

    Anyways I like this stock DEM as it is focus is on recycling and if there is 1 resource we want to manage better then WATER is it. It appears to be off to a reasonable start, I hope it continues on with much success. I bought a small holding.:xyxthumbs
     
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  8. Dona Ferantes

    Dona Ferantes

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    Duxton Water D2O is a pure 'water rights' company
     
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  9. aus_trader

    aus_trader

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    Glad to hear you saved yourself from total capital destruction from BLA, it wasn't pretty.

    DEM is a much smaller play and likely to grow over time. So let's see where it ends up in a year's time...

    D2O is a water rights company as Dona Ferantes said, so in a slightly different category to water purification / waste water treatment company such as DEM, which is why it wasn't included in the table of peers for comparison purposes above. So as far as I can tell, D2O makes money from selling the water entitlement rights to farmers/primary producers and similar industries.
     
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  10. jbocker

    jbocker

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    I saw D2O also in the 2020 competition entries and I am quite interested in it, there is a bit of a nagging concern, that someone raised with me in a discussion recently (probably not D2O specific). He was explaining the costs of water in recent times compared to costs a number of years back. The difference was very significant but I am not sure where this was, I think it was the Murray Darling. I didn't mention BLA but I did think wow can the farmers afford further increases!? So I don't if it is related or if there is much left in raising the cost of supply without killing the golden goose. Just nagging questions left with me after that discussion, I wish I could remember with whom I was chatting, amongst too much Christmas cheer.
     
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  11. jbocker

    jbocker

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  12. aus_trader

    aus_trader

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    Interesting reading, also was really saddened by the BLA management misleading it's investors and general public with false numbers while doing big cap raisings from them etc. Appalling and such practices should be treated as criminal !
     
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  13. Dona Ferantes

    Dona Ferantes

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    Bushfire aftermath
    you'd have to think there's something in this for DEM and others?

    But maybe not.
    The Army may get the job. The centralised decision making will not be nimble enough to respond.
     
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  14. aus_trader

    aus_trader

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    DEM does have some work ties with municipalities/councils etc with cleanup operations, so you neve know if they can strike a bigger deal like treating state wide water.
     
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