# PET - Phoslock Environmental Technologies



## michael_selway (16 April 2007)

Hi anyone own this stock and have any thoughts about it?

thx

MS



> http://www.phoslock.com.au/faqs.php
> 
> What is Phoslock?
> 
> ...


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## robusta (23 February 2011)

Not my usual style I normaly like high ROE stocks with a history of profits but I speculated with a small holding in PHK recently.

Sales are growing and I think it is close to being cashflow positive (6-12 months) and maybe even a maiden profit.

IMO PHK does have a competitive advantage in the treatment of phosphorus in water supplies.


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## robusta (1 March 2011)

Half year results out yesterday, on the face of it not very pretty reading:

Revenue down 35%

Loss increased 24%

Diluted EPS (0.55) cents PCP (0.47)

On the positive side the company provided some excuses 

"Sales for the period were affected by several projects being delayed in Europe and North America by 6 and up to 12 months"

On the positive side the outlook looks fairly good for PHK.

There are some nice numbers / forecasts in None 8: Going Concern that point to some nice earnings if targets are met. 

Previous forecasts by management have proved to be not completely ficticious.


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## robusta (7 March 2011)

Love to see directors buying on market in companies I hold

Laurence Freedman 540,076 on 2/3


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## Gringotts Bank (6 April 2011)

robusta, I like the look of this but wasn't Freedman involved in Equitytrust?

Cash flow positive quarter ann today.


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## robusta (6 April 2011)

Gringotts Bank said:


> robusta, I like the look of this but wasn't Freedman involved in Equitytrust?
> 
> Cash flow positive quarter ann today.




I have no idea, I will have to look into it. I have never looked at Equitytrust

Great news about cashflow today however.


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## robusta (6 April 2011)

Gringotts Bank said:


> robusta, I like the look of this but wasn't Freedman involved in Equitytrust?
> 
> Cash flow positive quarter ann today.




Think it was Equitylink Laurence Freedman founded, sold in 2000 to Aberdeen Asset Management.

http://www.smh.com.au/business/investment-pioneer-back-in-the-game-20110318-1c0cm.html


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## Gringotts Bank (7 April 2011)

Thanks, I like this story of PHK.  Think I'll wait for a pattern to form.  Chart a little bit formless right now.  Needs some volume desperately.


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## tryin hard (18 April 2011)

Is P before or after "Q". I was lost but now I have found PHK under Q - Z 

Interesting this company. The way the product works.


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## tryin hard (20 May 2011)

The work currently underway in Canada sounds intresting. (Just reading the last ASX Announcement.) May be this is why the SP has risen over the last few days. 

I will keep it in the watch list for now.


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## robusta (20 May 2011)

tryin hard said:


> The work currently underway in Canada sounds intresting. (Just reading the last ASX Announcement.) May be this is why the SP has risen over the last few days.
> 
> I will keep it in the watch list for now.




I will look forward to seeing the cash flow for the current quarter for PHK.

Work in Europe and Asia will also be of interest.


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## robusta (13 July 2011)

Nice movement in sp today, up 29%, can't wait to see the annual report


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## piggybank (25 November 2013)

Action so far this year...


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## peter2 (13 December 2017)

I'd give this one the thumbs up  as price continued higher.

The company is slowly building it's business of cleaning lakes and has recently won a contract in Poland.
I have been buying a little recently as the weekly chart shows a series of higher lows.
Unfortunately the daily traded volume is too low for me to include it in the momentum thread.


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## peter2 (18 June 2018)

Since my last post, price has gone higher, tested the 0.25 level and is now sneaking higher on above average volume.


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## greggles (20 June 2018)

Well spotted Peter. PHK has carried on moving north since your post on Monday and looks set to break through 40c. Volume remains above average and daily ranges have been increasing. Some real interest in PHK at the moment.


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## Faramir (20 June 2018)

It went up to 41 cents before closing at around 38.5 cents today. I missed it because I was looking at another water company. This is a typical habit of mine. Missing the boat!


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## Faramir (24 July 2018)

I actually did not know what I was doing with this 3 month chart. I actually do not know what I am suppose to be looking at. I just think Phoslock has a very big future because there are so many lakes around the world that need cleaning up. Think of all of the phosphate fertilisers over flowing into the rivers and lakes. The heat wave in the Northern Hemisphere causing algae to grow in rivers and lakes.

I still think that I missed the boat. I am so upset that I did not hear of Phoslock 3 or 4 months ago.

Thanks


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## HelloU (25 July 2018)

once the product flocs and sinks to the bottom, what happens to it?

my experience with al based flocs is they rise to be skimmed...cos they are nasty.


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## Faramir (25 July 2018)

Hi @HelloU 

http://www.phoslock.com.au/site/what-we-do/products

It combines with Phosphate to form a type of 'sand'. I don't believe it will rise to the top.


> forms a new inert mineral called Rhabdophane.



It has taken them so many years of trials, etc. Now they are winning contracts to clean up lakes.

This Capital Raise was well over subscribed.
http://www.phoslock.com.au/site/PDF/3204_1/55mCapitalRaisingheavilyoversubscribed

I missed out on 36cents (and lower). I wished I actually paid attention to @peter2 and @greggles charts rather than just think "another chart". There was a real story here and I never read it until it was too late.

Unfortunately, due to lack of funds, I only brought a "speccy" amount of shares when I believe that I should invest more. If I can find funds, maybe I should 'average up'.

Here are some of their recent successes:
http://www.phoslock.com.au/site/what-we-do/global-applications


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## HelloU (25 July 2018)

Faramir said:


> Hi @HelloU
> 
> http://www.phoslock.com.au/site/what-we-do/products
> 
> ...



thx, i new it sunk...and that csiro was part of this....so can only assume that quantities of 'stuff' lying on the bottom is not huge (or intrusive). I tried to research this some months ago (some european lake contract or something prompted me) and could find nothing about what happens when it sinks down. info tightly held but you would have to assume that the enviro peeps have given it a tick......anyway, good luck.


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## System (21 August 2018)

On August 21st, 2018, Phoslock Water Solutions Limited (PHK) changed its name and ASX code to Phoslock Environmental Technologies Limited (PET).


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## peter2 (22 October 2018)

The stock price of PET is stair-stepping higher quite regularly as the company grows. 
The last two days with above average volume looks bullish as price comes off recent lows.


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## systematic (1 January 2019)

One of those companies making big bets on the future.  Will it pay off?


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## debtfree (2 January 2019)

I noticed @peter2 has picked PET for the January 2019 Comp.

PET has has a great run over the last 2/3 years. PET seems to have found a bit of support over the last month at previous resistance levels (0.325 - 1st half of last year) 
By the posts above it seems the company has a decent future and if price returns to previous high of around .47 this month that would return roughly 30%. 
Not bad if it comes off, especially the way the market is behaving. Good luck @peter2


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## peter2 (3 January 2019)

Thank you @debtfree for looking after my interests. 

*PET*: Since my last post, price has drifted lower with the market. The volume has been quite low so I don't see any indication of panic selling. 

The potential for PET is very good as it's products clean up polluted waterways. Their manufacturing base is in China and there's plenty of contract opportunities in China. Although the outlook for PET (and it's share price) is very promising the management team will have a difficult time converting this potential into success without local and regional government support. 

I'm wary of companies that rely significantly on Chinese markets for success. I'm aware that PET has worked in many other countries but the ultimate success for this company lies within China (IMO). 

I've selected PET in the 2019 comp (and Jan19) and I currently have PET in several portfolios. I'm also waiting for another buy setup before buying more.


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## greggles (23 May 2019)

PET breaking out today after announcing that the results from the trial application of Phoslock to an exceptionally heavily polluted lake in South West China has resulted in a 75% reduction of phosphorus over the first four days of the application. The results also demonstrated to government authorities that Phoslock was simple to apply and the application had no effect on fish, plant life and humans.

As a result of the excellent trial results, an initial order of +/-$1 million worth of Phoslock is currently being applied to a section of the lake. Authorities will review the results in early June, when it is anticipated approval will be given to apply similar monthly dosages thereafter.

PET seems to be on the verge of making real inroads into the Chinese market. With so much pollution of bodies of water in China the market is potentially huge.


> Chairman Laurence Freedman AM stated "This is another milestone in the developing growth of Phoslock the material and PET the Company. These lakes are so large that they cannot be treated in a single application. Therefore, we will apply Phoslock progressively, which is likely to take some years. This is the first application of the first lake in this area, at a current rate of application of about $1 million per month. This rate could change and so could the number of lakes treated, not only in this particular area, but across China –and Internationally. Thus we are anticipating a growing monthly income from these very large water bodies, independent of all other sources of income".




PET up 15.56% to 52c so far today with an intraday high of 55c. Volume of around 4.5 million shares is the largest daily volume in the last 12 months.


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## Faramir (24 May 2019)

@greggles Thank you for posting up PET chart 12-18 months ago. Everyday you make wonderful contributions about so many stocks. Unfortunately I have a hard time trying to keep up. Maybe you are happy with me because I try to pay attention and brought PET after your post prompted me to do some research. Maybe you are unhappy because I should have more attention, have better concentration and find time (& funds) to investigate and buy others as well.

I felt stupid when I purchased PET 11 months ago after its fantastic run - I missed the boat!

This quarter, PET was included into ASX300. I think it won't take long to get into ASX200.

Northern hemisphere, especially Europe, will have a HOT summer this year. Lots of algae growing in lakes. Angry public researching and demanding PHOSLOCK for their polluted lakes. PHOSLOCK beats the other alternatives around.

Why didn't I buy more PET??? Should I average up? I will think about it.


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## HelloU (24 May 2019)

HelloU said:


> once the product flocs and sinks to the bottom, what happens to it?
> 
> my experience with al based flocs is they rise to be skimmed...cos they are nasty.



i hear u faramir (and thx to greggles)
i still cannot get the "sinking floc" thoughts from my mind - sort of "just get that nasty stuff out of public view". I still cannot find out what happens long term to the junk that settles on the bed.

anyway, that is why i bought more of a "filtration" water company (that has done nothing) and less of this - and that is why i hear u faramir #metoo.


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## Faramir (1 July 2019)

This morning’s announcement shot PET up at least 22% at midday.

https://www.asx.com.au/asxpdf/20190701/pdf/4467vz6nrvgx00.pdf

Sitting on an average of $0.40. I am desperate for money. Doing better than 100%, I have bills. I think I will find money elsewhere.

I can’t let go of PET. I feel so impatient about it being a 3 bagger. $1.08 not long along, will $1.20 ever arrive??? I feel so bad not buying PET late 2017 but waited until I had funds mid-2018.

I have to admit that I use mainly emotions for choosing PET. Their story was too compelling for me. Hopefully never again will I be emotional - rightly or wrongly.

Another mistake, I forgot to tip PET in the ASF sharemarket comp.


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## Tyler Durden (3 July 2019)

The last announcement seemed very positive, and at first blush this company has a lot of potential. After the article in SMH spreading the word, the share price hiked a bit but today has dropped back down. Any guesses as to why?


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## HelloU (4 July 2019)

on that ann ....
projected production numbers at first glance seem very very good (but numbers are not my thing) ...... is there a message there?


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## tryin hard (4 July 2019)

I bought into this company a long time ago........sold enough to cover my investment a few years ago at $0.20. and now it is showing the potential I thought it would have back then.

I think this is a company that is helping to improve the environment. Keep up the good work Phoslock.


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## HelloU (11 August 2019)

getting some broker noise tomoz in some pubs .... just believe me (maybe BULL though).

see what I did there .....


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## peter2 (4 September 2019)

PET directors have recently reported that they've sold some of their holdings to satisfy a "highly regarded major investment management group seeking to purchase a material stake in PET". Board and management owned 31% of the issued capital and have reduced that to 26%. 

This selloff by the directors doesn't make sense to me unless they took this opportunity to grab some profit after PET's recent price surge. They could have used the insto interest to raise more capital but I'm unaware if they need it. 

Price has drifted lower after the news and I'll wait for evidence of demand to reappear before buying.


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## Faramir (10 September 2019)

PET made it into ASX300. I wonder what will happen next. It is in consolidation mode at the moment. (Please let me know if you think I am wrong). I need patience for the next big contract announcement. I think it will be another lake in China again. Florida bureaucrats take a very long time to make decisions. Florida will come thru eventually.

The main competitor to PET is Alum flocs. It’s bad.

https://www.google.com.au/amp/s/rel...um-sulfate-clears-polluted-lakes-algae-blooms

Here’s a “pro” alum article
https://www.nalms.org/nalms-position-papers/the-use-of-alum-for-lake-management/

Another alum article
https://www.google.com.au/amp/s/www...um_in_eutrified_lake_to_control_pollution/amp

I heard that Alum flocs and copper flocs are banned but I cannot find articles to verify that claim. Phoslock just make inert sand.


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## Tyler Durden (9 October 2019)

PET announced today that it has secured an initial $1.3m order for Florida Wetland and Lake Remediation projects.

Although I think their main source of revenue will come from China, they are also trying their hand in the US.

PET closed at $1.27 today.


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## Zaxon (10 October 2019)

Tyler Durden said:


> PET announced today that it has secured an initial $1.3m order for Florida Wetland and Lake Remediation projects.
> 
> Although I think their main source of revenue will come from China, they are also trying their hand in the US.



It's nice to see we have companies with some international diversification on the ASX.  The more the better.


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## So_Cynical (10 October 2019)

Market cap of 670+ million with current annual revenue of around 20m - crazy valuation. And if they triple the size of the plant 
spending 20 or 30 million they have a revenue of maybe 60 or 70? it's priced for something thats pretty much impossible.


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## Trav. (16 December 2019)

Yearly tipping comp top pick

Extract from sales forecast says it all !!






Chart - Good run in 2019 and retraced late in the year. I expect it to continue the trajectory shown and will be a nice stock to have in the comp.


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## peter2 (29 December 2019)

PET - I also like it for the 2020 CY comp. This environmental remediation company has huge potential if it can successfully market itself outside China. The opportunities in China are huge also and being a local manufacturer will help garner more business in China.


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## Faramir (1 January 2020)

Top choice for 2020 tipping comp.

(Sorry, no chart, info nor announcements links) OK, maybe just one.
44cgyj39qdxxnk.pdf
Lake Dianchi – New Project Area

Contracts like the above will become more common. The above contract is a "smaller" contract compared to the ones announced back in July and gave PET its boom.

I have posted enough on this thread to confirm my belief in Phoslock. Pity I "average up" too much due to FOMO. When Florida announces new contracts, then things will take off. Europe contracts will be the dark horse. Things are quiet now because it's winter in the Northern Hemisphere. The only reason why China is acting faster is because their bureaucrats just do things when they have a big budget. Bureaucrats in other countries engage in a talk fest forever - eventually talking has to be backed up action. The only hiccup I can see, will Phoslock build a factory in US or can the factories in China keep up with demand? Yes, demand will escalate - if not 2020, definitely beyond that.


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## Trav. (8 February 2020)

I'm probably overweight in this stock....well definitely overweight in PET 

I think PET handled this weeks virus news extremely well as it has considerable interests in China, so on Monday the XAO dipped -1.4% and PET -3.4% created a new LL but with a positive close creating a nice pivot point and then gained ~8% for the rest of the week to finish in a nice strong position.

Some positives on the chart and looking forward to the next few weeks

Daily Chart below


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## Dona Ferentes (17 February 2020)

Soothing sounds from China; also picked up a new prominent contract in Brasil.







> *China Update – Key points:*
>  Beijing office now back at work
>  Government approval to re- start factory
>  Production to ramp up over the next month
> ...





> *Brazil Project*
> Through its Brazilian licensee, PET has received a contract from CEDEA, to treat one of Rio de Janeiro city’s main drinking reservoirs.The application has already commenced and will continue for the next three months, with an estimated value of over $2m


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## frugal.rock (17 February 2020)

I blame my broker's software for completely missing this rise today.
Westpac app.
It decides on occasion, to say that the password is wrong... when it does this, there's no fixing it without problems, problems like losing your current 'get a quote' list, which PET was in. 
How annoying, sat on the sidelines today, have been waiting for a pet jump.
F.Rock


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## Trav. (22 February 2020)

Some more ramblings and lines from me 

I can see a EW structure being formed here. IF wave 4 is complete then we may see some positive action next week


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## Dona Ferentes (27 February 2020)

Informing the market: back at work essentially, in China.


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## Trav. (9 April 2020)

PET come out of trading halt today with the following https://www.asx.com.au/asxpdf/20200409/pdf/44gv7qb5ptcwl5.pdf






SP dropped today to a low of 52 ( so far ) but will hopefully settle down and continue its recent recovery.






also they release a presentation for their Accelerated Growth Platform https://www.asx.com.au/asxpdf/20200409/pdf/44gv7s8cgx8sc1.pdf

some highlights below but PET hopeful to build on presence in China










Added to my position today and looking to hold long term.


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## Faramir (9 April 2020)

They also announced up to $30K for SPP at $0.50 for retail investors. I am expecting it to be oversubscribed. Directors purchased $3.0 million themselves. Pity I'm unemployed at the moment. Therefore I won't be taking part unless I find money somewhere??


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## tinhat (10 April 2020)

Froth. Be careful.


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## Trav. (10 April 2020)

Yes i did see the SPP but think the scale back will be huge as only 10 million new shares to be issued at 50c, so after going through the NST SPP I don't have high expectations on getting a good slice.


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## Dona Ferentes (19 April 2020)

24 Jan. 2020 - First ASX Announcement about coronavirus.


Dona Ferentes said:


> Soothing sounds from China.



Sometimes , oh well. Was always hard ... *"The silence, however, was deafening.*"



> On January 24, almost a month before the benchmark S&P/ASX 200 index cruised to its record high, a listed but little-known water decontamination company with a bunch of contracts in China published a salutary warning about the coronavirus. Phoslock Environmental Technologies reassured investors that there had been no impact on the business from the “current health concerns” in China, and staff had completed the first applications of its CSIRO blue-green-algae-busting technology in Wuhan last September and October.





> “None of our staff has been affected and there has been no impact on PET’s business,” Phoslock said, in the *first virus-related announcement by an ASX-listed company.* The mere mention of an Australian business connection to Wuhan, which is recognised as ground zero for the global spread of the rebadged COVID-19 virus, might have been expected to attract a glimmer of wider interest.
> *The silence, however, was deafening.*





> Laurence Freedman is understandably circumspect about the source for his COVID-19 call, which turned out to be remarkably prescient.
> 
> “We closed our factory (in central-western China) before most people did,” he tells _The Weekend Australian_. “The messages we were getting from local authorities were very alarming, and we felt it was necessary to take all necessary precautions.“ The government locked down the Wuhan area shortly after (on January 23)."


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## frugal.rock (19 April 2020)

tinhat said:


> Froth. Be careful.



Can you please elaborate on that as I would think PET has a fairly good outlook for the medium to long term based on the environmental solution they sell as a product?
Their product reduces froth I thought...
Cheers.

F.Rock


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## Dona Ferentes (19 April 2020)

i would have thought the froth was 12 months ago. Ignore that, and its just implementing its solutions on a case by case basis.

(That's the trouble with being on the "verge of making real inroads into the Chinese market", when they figure out you aren't)


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## Trav. (30 April 2020)

Quaterly cash flow out today and to me it doesn't look to flash but the market pushed the SP up for some reason.....maybe the SPP closing has helped ?

Although I am pretty heavily invested here this announcment doesn't look to good, so will have to watch very closely, but willing to hold for now as SP has held up pretty good considering the SPP could have driven the price lower but I am sure the big boys are probably manipulating the SP a bit.

Minimal receipts for period, but still forecasting 50-70m for FY...is this realistic or wishful thinking????


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## Trav. (27 May 2020)

Just another update on PET following the SPP @ $0.50 and their AGM

Bit of action yesterday had the SP hit resistance @ $0.625 again then retrace so this becomes an important level. 

No real surprises in the AGM and people just speculating about a few projects in China. Still holding and hoping for a retrace back to the $0.80 level 





	

		
			
		

		
	
ther


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## Trav. (15 June 2020)

Oh Bugger this can't be good. Not feeling to confident about this as SP has been worrying me lately and I was thinking about a staged exit.....but I might be trapped if this goes south.


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## Trav. (16 June 2020)

No real surprise, so better to be on the front foot and declare reduced expectations

_Accordingly, we are reducing our short-term revenue expectations for the remaining six months of this year. We are now forecasting a revenue range of $30 – 40 million for full year 2020. While this is a substantial reduction over our previous forecast range, if achieved it would result in a sales increase of approximately 40%, at the midpoint, over last year._​
https://www.phoslock.com.au/site/PDF/79ae0a3e-3a34-48a3-9023-5d9657d30c32/MarketUpdate​


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## Trav. (16 June 2020)

but that wasn't expected


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## Dona Ferentes (16 June 2020)

Be wary of the China dependency, myself


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## peter2 (25 June 2020)

Dona Ferentes said:


> Be wary of the China dependency, myself




Yes, this is definitely a potential long term concern. Short term, China is being very antagonistic to selective (soft target) Aust interests.

PET sources it raw materials within China, manufactures its end product in China and the majority of its projects are in China. However its head office is in Aust.

Since the company last sales revision (reduction) price has continued to fall. It's now well below the last SPP (@ 0.50). I suspect that management were expecting some impact to their business and conveniently blamed the rise in corona virus numbers and the potential for a second wave (news 16/6). If they were aware of any political interference they certainly couldn't go public.

Price is now back at the covid low. If it doesn't get support here, it would indicate to me that PET has serious problems.


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## Trav. (27 June 2020)

One thing I found interesting this week was that the ASX issued PET with a query letter on the 22/6 which went directly to the company ( not announced )

SP @ 22/6 = Closed down 2.9% to *$0.34*​
Published response to the ASX on the 25/6

SP @ 25/6 = Closed down 3.2% to $*0.305*​
So a few days in between the issue of query letter and response to ASX and SP tanked even further................make what you want of that but I think this stinks a bit and I am looking at another OGX or even CLA

Looks like I can pick them.


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## Dona Ferentes (27 June 2020)

peter2 said:


> PET sources it raw materials within China, manufactures its end product in China and the majority of its projects are in China. However its head office is in Aust.



Red Flag ?? !!


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## Trav. (27 June 2020)

Dona Ferentes said:


> Red Flag ?? !!




@Dona Ferentes this one ?


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## frugal.rock (27 June 2020)

Look at EHH. 
Big red flag for PET and anything else owned by aus.
Trading suspended for months now.
I suspect that the manufacturing facilities have been commandeered.
Commies dirty tricks. 
Wouldn't think the real risk would out way potential gains.


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## peter2 (6 July 2020)

PET spiked higher today after news that Phoslock has obtained and started more projects outside of China. It seems that the market was waiting for this news and mgmt provided it in a timely manner. 

Will monitor chart for signs that demand for PET stock is more solid than a "one day wonder" in response to mgmt spin.


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## Trav. (6 July 2020)

peter2 said:


> "one day wonder" in response to mgmt spin.




That was my thought as well @peter2 , management trying to turn SP movement around via an announcement but end of the day they need to show the orders and money in the bank account.


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## frugal.rock (6 July 2020)

peter2 said:


> PET spiked higher today after news that Phoslock has obtained and started more projects outside of China. It seems that the market was waiting for this news and mgmt provided it in a timely manner.
> 
> Will monitor chart for signs that demand for PET stock is more solid than a "one day wonder" in response to mgmt spin.



What about manufacturing of the product used, still in China?
(Products often (usually) are rebadged out of the same factory, regardless of contracts.) 
The "State" couldn't doesn't care.


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## peter2 (2 August 2020)

The latest business update from PET disappoints.
Flooding in China has delayed progress on key projects. 
COVID-19 impact delaying many overseas projects. 
Higher than anticipated inventory impact cash flow in first half. 

Phoslock, like many other companies must wait for conditions to improve. 

Investors don't have to wait and have sold PET to redeploy their capital elsewhere.


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## frugal.rock (2 August 2020)

It's worth noting however, no projects have been cancelled. 
Depending on the "other" situation in said country, will just have to wait and see on diplomatic relations outcomes. Not a premium environment for the pet ATM.


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## peter2 (2 August 2020)

Quite right.  PET's business has been suspended for a while and my estimate would be 3 - 6mths to allow flooding to subside and waterways to settle. 

They're going to reduce manufacturing and postpone their plans to boost production in order to lower costs during this period. They've no debt and currently, little revenue.


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## peter2 (21 August 2020)

There's been some significant demand recently with no news. I'll need a higher low that respects the sloping R line or a shallow sideways trading range for a trading setup. On the watch list.


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## Trav. (17 September 2020)

more drama for PET holders today

Lots of speculation about the audit investigation but we will have to wait and see


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## galumay (17 September 2020)

Gorne.


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## Chronos-Plutus (17 September 2020)

galumay said:


> Gorne.




That's nasty if it eventuates; they just released an investor presentation a few weeks ago.


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## Dona Ferentes (21 September 2020)

frugal.rock said:


> Big red flag for PET and anything else owned by aus. ..Trading suspended for months now.
> I suspect that the manufacturing facilities have been commandeered.
> Commies dirty tricks.
> Wouldn't think the real risk would outweigh potential gains.



Market Update – China accounting irregularities; audit investigation ongoing

 Phoslock Environmental Technologies wishes to advise that an ongoing independent investigation initiated by the Chairman and Managing Director *has revealed certain accounting irregularities relating to PET’s China Operations. *

The investigation, being undertaken by KPMG’s forensic accounting division, follows suspected accounting irregularities discovered during the audit process for the half year ended 30 June 2020.

The company will seek to leave the current voluntary suspension of trading in place until the investigation and resulting KPMG report is completed and the impact of any irregularities is quantified

_*Outweigh?  Way out*_


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## Trav. (1 October 2020)

Interesting announcement out yesterday with the resignation of a couple of directors.

Obviously doesn't look good for these two and the company, but we will have to wait for more news once the audit is complete to see if the company can recover from this.


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## Dona Ferentes (8 October 2020)

> Fraudulent activity has been identified, including false accounting and falsification of invoices and service contracts where PET or its subsidiaries are the recipient, and potential improper tax reporting and misappropriation of funds. Several China-based employees have been either stood down or terminated in relation to these matters.  It has also been confirmed that several previously undisclosed related party transactions have taken place .



Downside of
a) technological transfer
b) working in jurisdictions with little IP protection
c) having local partners / JVs forced upon you
d) dubious accounting standards
e) Covid
f) all of the above?


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## Dona Ferentes (12 November 2020)

That sinking feeling

_The Company now confirms that it has identified fraudulent activity relating to areas including false accounting and falsification of invoices and service contracts; improper tax reporting; potential misappropriation of funds including improper payment of bonuses; and undisclosed related party transactions. 

In response to these matters, the Company has already: 
• Commenced a restructuring of its organisation in China, with a number of senior and middle management employees terminated;
• Commenced a comprehensive and systematic review of all current China contracts and contractual arrangements with third parties, including sub-contractors and distributors, to help provide a sound basis for re-evaluating our near and mid-term expectations for revenue generation in China;
• Commissioned an independent market review of the waterways remediation market in China to help assess our opportunity in the region and to better inform decisions relating to organisation structure, location, etc; _


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## mangojoe (20 November 2020)

KPMG says no conflict investigating Phoslock fraud
					

Phoslock hopes a KPMG report can draw a line under the shocking story of accounting fraud in China and investors left underwater.




					www.afr.com
				






> After signing off on the falsified accounts of the Chinese operations of water treatment company Phoslock Technologies, it seems auditor KPMG Australia saw no conflict in accepting more fees to investigate its own work.




Great, instead of having a new pair of eyes on it, they let the same company check... as if they would be motivated to find more dirt than absolutely necessary to save their reputation.


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## Dona Ferentes (20 November 2020)

mangojoe said:


> Great, instead of having a new pair of eyes on it, they let the same company check... as if they would be motivated to find more dirt than absolutely necessary to save their reputation.



Chinese Walls?


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## Trav. (24 December 2020)

Market update out yesterday and as positive as can be, with some orders from outside of China. It would be nice to have more detail on these orders but I am sure all will be revealed next month







Also approval to extend the time for lodgement of the half-year report for the half-year ending 30 June 2020 with ASIC until 31 January 2021 has been given


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## Trav. (5 April 2021)

PET still not trading and will not be this financial year. I suppose the good news is that they have $30M in the bank so they should survive when relisted but my calc's have the minimum SP at $0.048 based on the cash and shares issued alone.

PET Last traded @ $0.245 with a high in 2019 of $1.59 which I don't think we will see for a very long time.

So not much can be done at the moment for shareholders .... Below is a couple of slides I thought relevant from their last presentation but this will get ugly when trading resumes.


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## frugal.rock (18 July 2022)

To me, a clear roadmap isn't just more words...
The ticker reminds me of the Stephen King book/ movie.


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## Dona Ferentes (18 July 2022)

coming up for two years away.
_Clear roadmap provided for reinstatement of PET shares _

and ?


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## frugal.rock (6 October 2022)

Dona Ferentes said:


> and ?




It's alive...well, sort of. 
There's a pulse.


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## frugal.rock (6 October 2022)

Its got a pulse, good enough for me.

A dark horse entry 😬 what could go wrong?


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## frugal.rock (6 October 2022)

Since reinstatement to official quotation (16th September)  3 directors have stumped up about $80k between them, and bought shares on the market.

It was suspended for a little over 2 years and the share price was around $0.24 at the time.

Make of that what you will.
Chart since reinstatement.


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