Euro Tech Holdings Co. Ltd. (NASDAQ: CLWT)
Euro Tech Holdings Co. Ltd. (CLWT) engages in the distribution of automated process control, analytical and testing equipment for the water and wastewater treatment industry. The Company carries well-known products from the United States, Germany, Japan and the United Kingdom. In addition to distribution, the Company also manufactures analytical instruments and testing equipment to the water and wastewater industry.
Founded in 1971 under the name Eurotherm (Far East) Ltd., the Company is headquartere3d in Hong Kong.
|
Share Statistics (30-Nov-09) |
|
FY 2007 |
FY 2008 |
% Chg |
Q2 2008 |
Q2 2009 |
% Chg |
|
| Symbol |
CLWT |
Revenue, $Mn |
27.2 |
31.7 |
16.5% |
18.3 |
n/a |
n/a |
| Current price |
$3.42 |
Gross marg. |
25.0% |
24.0% |
11.8% |
24.0% |
n/a |
n/a |
| 52wk Range: |
$0.40-3.72 |
Oper. margin |
0.74% |
1.26% |
100% |
2.7% |
n/a |
n/a |
| Avg Vol (3m): |
252,148 |
Net margin |
1.47% |
0.32% |
-75% |
0.55% |
n/a |
n/a |
| Market Cap. |
40.42M |
|
|
|
|
|
|
|
| Dil. Shares Outst. |
12.21M |
EPS, $ |
0.034 |
0.012 |
-64.7% |
0.012 |
n/a |
n/a |
Source: Reuters.com, SEC Filings.
Financial Summary
| Financial Strength (30-Nov-2009) | Company | Industry | Sector | S&P 500 |
| Quick Ratio (MRQ) | 1.64 | 2.43 | 1.41 | 0.86 |
| Current Ratio (MRQ) | 1.92 | 2.75 | 1.75 | 1.02 |
| Long-Term Debt to Equity (MRQ) | 0.00 | 23.37 | 66.50 | 129.0 |
| Total Debt to Equity (MRQ) | 0.00 | 31.82 | 94.21 | 198.51 |
Source: Reuters.com, SEC Filings.
Analyst Consensus
No analyst covers CLWT at this time.
Investment Highlights
In China, the market for water treatment products is expected to reach $6.5 billion by 2012, according to Cleveland-based international business research firm Freedonia Group. As China deals with rapidly growing industries and waste associated with production, the market for treatment products is anticipated to grow at a rapid rate as well, with most rates of growth estimated at double digits. Every product category within the water treatment industry will enable makers of equipment and instruments located in China and Hong Kong the opportunity to grow at equivalent rates in the world’s third-largest market.
The market in China is divided into the industrial and residential sectors, with the industrial sector accounting for more than half of the total annual sales. Beijing’s commitment to reduce air and ground pollution will significantly drive the industry, which is expected to affect reduced water usage on a per production unit basis. However, overall water usage is anticipated to grow by more than 15% per year due to China’s rapid GDP growth, which has registered an average of more than 10% for more than 20 years.
Trends in the paper mill and metals processing industries have moved toward more aggressive reclamation projects, allowing better recovery of pulp and metals for the use in paper-making and higher-yielding metals processing levels, respectively. These new processing methods allow for reduced wastewater discharge and water usage, saving industry hundreds of millions of dollars each year in water usage and opportunity costs through more efficient operations. As a result of these initiatives, the demand for biocides and chelating agents as well as water filtration and innovative membrane systems are expected to increase markedly.
Rapid growth in China’s water supply and wastewater treatment infrastructure will be the catalyst for growth in equipment, instrumentation and chemicals in the municipal water treatment sector. Retrofitting present wastewater treatment and installations of new plants in rural areas will take place through several decades. Moreover, increases in wealth of Chinese citizens lead to demands for cleaner drinking water from their municipal supply, which is expected to increase purchases of filtration systems, instrumentation and chemicals during the same time period. The issue is of such importance in Beijing, seawater desalination is also being considered as an additional option to the demand for a cleaner water supply and safer wastewater disposal.
Latest Company News
Shares of CLWT have moved higher recently as rumors of a Company initial public offering of its water division attracted investors to the trade. However, Internet messages reveal that many traders argue that the Company’s shares were part of a coordinated promotional campaign from momentum traders.
Technical Analysis
Source: http://stockcharts.com/h-sc/ui?s=CLWT
CLWT trades above its 13-day moving average. This bullish sign is significant because the 13-day moving average is upwardly sloped.
The MACD for CLWT currently indicates a bullish signal. The MACD is above the signal line, a 9-day moving average of the MACD. The MACD is above the critical level of 0, which implies the past price action has been positive. Overall, the chart is bullish.
Comparative Analysis
|
Company Name |
Ticker |
Price/ |
Mrkt. Cap. |
P/E |
P/S |
||
|
Nov-30-2009 |
symbol |
Share, $ |
$ Mn |
2009 |
2010 |
2009 |
2010 |
| PerkinElmer Inc. |
PKI |
18.87 |
2,200 |
28.90 |
14.08 |
1.23 |
n/a |
| Waters Corp. |
WAT |
58.78 |
5,570 |
17.99 |
15.72 |
3.74 |
n/a |
| Agilent Technologies Inc. |
A |
28.92 |
10,010 |
n/a |
16.91 |
2.23 |
n/a |
| Poll. & Treat. Median |
|
|
|
41.80 |
n/a |
41.8 |
n/a |
| Euro Tech Holdings Co. Ltd. |
CLWT |
3.42 |
40.42 |
285.0 |
n/a |
1.27 |
n/a |
Source: Thomson Financial
Insider Trading Activity
|
NET SHARES PURCHSE ACTIVITY Inside Purchases – Last 6 Months |
||
|
Shares |
Transaction |
|
| Purchases |
n/a |
n/a |
| Sales |
n/a |
n/a |
| Net Shares Purchased (Sold) |
n/a |
n/a |
| Total Insider Shares Held |
n/a |
n/a |
| % Net Shares Purchased (Sold) |
n/a |
n/a |
|
Net Institutional Purchases – Prior Qtr to Latest Qtr |
|
|
Shares |
|
| Net Shares Purchased (Sold) |
n/a |
| % Change in Institutional Shares Held |
n/a |
Source: Yahoo Finance
Report Disclaimer
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.
The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.
Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.
Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.
We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.
To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).
We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.
- Need fast service and cheap rates from a broker? Buy stock online at my favorite brokerage
- See today’s top stock picks and market analysis
- Want more? Check out the message board buzz for these stocks
- See what newsletters are recommending these stock picks
- Get breaking news alerts on these stocks: http://thestockmarketwatch.com/
- This newsletter has been helping traders make a killing on these stocks. Click here for a 25% discount offer.
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
Beacon Equity Group Disclaimer
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
