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Energy Recovery (ERII): a hidden small cap on the growing water/energy problem
Energy Recovery (ERII): a “hidden” small cap on the world’s new gold WATER
Energy Recovery (ERII): a “hidden” small cap on the world’s new gold WATER
Energy Recovery (ERII): a “hidden” small cap on the world’s new gold WATER
Energy Recovery (ERII): a “hidden” small cap on the world’s new gold — WATER
ERII Energy Recovery Desalination
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Anyone follow ERII? They make water desalinization equipment, and have about 90% market share. Stock got hammered as they cut and then pulled guidance due to projects in the middle east getting pushed back due to the war. Also, insider selling triggered algo selling, but the large inside sale was a margin call, so not really a reflection of the business. In the meantime insiders are buying and the company is using cash to repurchase shares. Seems like an interesting opportunity if their business rebounds on a peace deal.
For datacenters I like ERII they do desalination and c02 reefer. No one discussed their use case with datacenters. Medical is mRNA, Finance JPM, spgi These are random tickers with no effort post good luck.
**$TGB** a company that is making a mine that's basically fracking but for copper, yet it's more environmentally friendly and uses significantly less resources. **$AA** Alcoa is a major aluminum smelter with operations around the world, and is gearing up to be the first major gallium producer outside of China using byproducts from their existing processes. **$ERII** A company that makes compressors that make water desalination and reverse osmosis (typically enabling industrial water-heavy processes to recycle water) much more efficient. They continually improve their product and have no real competitors. The only issue is that their earnings are reliant on large projects, so (like now) if a project gets delayed a quarter, they get punished heavily for the missed EPS and revenue, despite the fact they'll make it back in a quarter or two. **$ELA** is a stock to watch, I found it right before it popped off so I haven't bought much yet. They're a diversified business of new and used jewelry stores in the sun belt; primarily Dallas Texas, as well as a business of recycling and refurbishing commercial computers and computer parts. It's an underrated way to capture both precious metal appreciation, the ever growing need for computers for businesses, and the ever growing luxury watch market while being concentrated in a place where wealth is increasing. Float is low because founders still own the majority of shares but if it dips I'm buying.
I have a few energy or energy-related stocks in my holdings and a couple I'm watching. I have different reasons for being in energy from you, but that's the good thing about energy - it'll be important pretty much regardless. Even if you're wrong, you can still be right. Note I'm a very inexperienced and not very interested investor so take this for what it's worth. Materion (MTRN) - Advanced materials producer that stands to gain from new nuclear power construction no matter which next gen tech (SMR, molten salt, or even fusion) wins. Quantumscape (QS) - solid state battery producer that seems to have the best tech and shot at the market. High-risk play because the best tech doesn't always win. Energy Recovery Inc (ERII) - produces devices that allow recovery of energy used in energy intensive processes - specifically desalination. More of a water play than energy, but it exists at the intersection. The price has taken a hit this year due to Middle East conflicts. Nabors (NBR) (watchlist) - Oil drilling company that I'm more interested in for their longer term investments into next-gen geothermal drilling startups. Feels like the price has been very inflated by the Iran conflict, though, so I'm not buying in yet. If any of those geothermal startups goes public on their own I may ditch this one as well.
**VICR** Vicor is a company out of Massachusetts that makes very efficient and modular semiconductors used for stepping up and stepping down voltages. It's useful for EVs, HPC particularly GPUs, as well as satellites since it reduces energy loss/heat. Their product is more efficient and reliable than competitors so they can carry a price premium. If you have any wonder what happens when you cheap out on these, Hyundai's ICCUs use Hyundai's own design and they're having lots of problems with them. **TGB**. Canadian mining company that is opening up a mine in Arizona, their new mine uses basically what amounts to fracking but for copper, which uses less water and more importantly significantly less fossil fuels (which are getting expensive if you haven't noticed) than other extraction methods. This mine will have a cost per pound of copper of just over $1USD. Copper is hugely important for the economy as a whole, especially the fastest growing sectors like renewable energy, EVs, HVAC systems, and basically everything that requires electricity. **ERII** Energy Recovery inc is a high margin, high moat company that has a near monopoly on systems that make all kinds of water reclaimation from desalination, industrial and wastewater reclaimation to ferric phosphate extraction from brine for use in LFP batteries. Their motors return energy from the end back to the beginning of reverse osmosis systems and unlike the few competitors in the space are made of aluminum ceramic which do not corrode or need maintenance like stainless steel in the heavily corrosive environments these systems operate in. They are beat down because their business relies on large projects, and the current Iran war is causing issues, but they have a ~90% market share in desalination plants, have expanded into selling to high water use industries like mining and textile work to reclaim water, and are moving into the lithium mining space as well as the industry moves away from evaporation pools. This isn't a speculative company. This is a company that's already been profitable and growing for years with 60% gross margins.
Look into water companies that are focusing on cooling solutions for data centers. XYL, ECL, ERII
ERII is an interesting company. I checked out their website. 230 employees across 12 countries. How did you decide to invest in this company?
ERII High margin, high moat company that has a near monopoly on systems that make all kinds of water reclaimation from desalination, industrial and wastewater reclaimation to lithium extraction from brine. Their motors return energy from the end back to the beginning of reverse osmosis systems and unlike the few competitors in the space are made of aluminum ceramic which do not corrode or need maintenance unlike even stainless steel in the heavily corrosive environments these systems operate in. They are beat down because their business relies on large projects, and the current Iran war is causing issues, but they have a ~90% market share in desalination plants, have expanded into selling to high water use industries like mining and textile work to reclaim water, and are moving into the lithium mining space as well as the industry moves away from evaporation pools.
# Energy Recovery (ERII): a “hidden” small cap on the world’s new gold WATER Core business: they recover energy in high-pressure processes (mainly desalination), so less energy used = lower costs = higher efficiency. They don’t produce drinking water. They do something even more important: THEY MAKE IT ECONOMICALLY AND ENVIRONMENTALLY SUSTAINABLE TO PRODUCE IT (companies are increasingly forced to reduce pollution) They are basically: “picks and shovels” for those turning seawater into drinking water. Their MLD / ZLD systems: \- MLD (Minimum Liquid Discharge) = minimal wastewater \- ZLD (Zero Liquid Discharge) = zero wastewater In simple terms: industries recycle water instead of discharging it. Same principle: high-pressure systems → energy recovery → higher efficiency Recent stock drop, over 30%. The decline came after exiting the CO2 business, which was seen as a potential long-term growth driver. Short term: negative reaction. Long term: could be seen as focusing on core business. Possible interpretation: cutting non-performing segments to focus on stronger ones, or making room for new applications (industrial use or cooling). Nothing stops them from moving into cooling (data center cooling), considering they already have the technology and demand is growing. That’s the kind of shift that could trigger hype, similar to what we’ve seen with other sectors. Context: \- growing demand for drinking water \- rising energy costs \- industrial systems and AI using more and more water On top of that, a geopolitical factor: recently, water infrastructure and desalination systems in parts of the Middle East have been targeted or put under pressure, where the company has strong exposure. This is not a “positive driver” in a direct sense, but it highlights how: access to water and system efficiency are becoming increasingly strategic. Water and energy are turning into a dual constraint. This kind of technology sits right in the middle of it. AI → Semiconductors → Energy → Storage → Memory → Commodities → What’s next? This is not financial advice.
Not OP but ERII. Cooling and water. Have a look
I sound like a broken record but ERII is the dip I am enjoying
I bought only two stocks last week. $ERII and $KVUE.
ERII. A profitable water desalination company with 65% gross margins. It's beating down because their sales are in big projects, and projects landing one quarter later than expected reduces their quarterly earnings, but has no effect on how much they make a year.
Shhhh I got some alpha right here for ya VEOEY - emergency water services out of France and operate plants in the Middle East for desalination ERII - produces pressure exchange systems every desalination plant has XYL - They supply water treatment systems to the Middle East already Tie that on up with some global exposure PIO 📞🗿
IPI and NTR fertilizer is going to moon. The gulf states are going to spend stupid amounts of money getting oil production back on line later HAL SLB BKR If the desalination plants really get wrecked FLS ERII
Using some screeners, I found a couple high margin growth stocks that are basically unheard of. Forgive me for my wording I'm basically half asleep but I can answer any questions y'all have. The first is **VICR**. Vicor Corporation designs, licenses, and manufactures semiconductors that convert 48v electric currents to smaller voltages and vice versa. For a whole host of reasons that involve stuff like electrical resistance and heat dissipation this is extremely valuable and remember, electrical resistance is released as heat. Their power modules are valuable for high performance compute because modern accelerators need high current, low voltage electricity, and their chips hugely reduce the amount of electricity lost to heat, which is critical for high density dies where heat and electric current is everything. Their modules are also used in everything from electric cars where converting the high voltage EV battery to a lower voltage 12v that car electronics can run on, thus not needing a lead acid battery, while simultaneously reducing the weight and gauge of copper wiring harnesses in EVs by as much as 85%. They are also useful in satellites, where reducing power losses to heat is critical since satellites obviously can't rely on air to transfer heat energy to. And they recently won a court case regarding patent infringement, so their moat has increased massively, and are due for more royalty payments which is basically free money. The second is **ERII**. Energy Recovery Inc manufactures pressure exchanger technology that are able to be added to cyclical-high pressure systems, primarily desalination plants and CO2 refrigeration systems. Both require very high pressure liquid and gas respectively, and their devices can be added on to the part of systems after the "high pressure" part is no longer needed to transfer that energy back to the beginning of the cycle, thus massively increasing efficiency. Their pressure exchangers can run in desalination plants for 30 years before maintenance is needed, and can reduce energy needs in desalination plants by 60%. CO2 refrigeration is also gaining market share worldwide for large systems due to energy efficiencies and not using harmful refrigerants that can escape in the atmosphere. Both of these companies are profitable and have over 50% gross margins in industries that I can only see as being stable or growing in the long term.
Anyone in on ERII? Reporting tomorrow. Unsure how they’ll do, wasn’t good last earnings
I like your style. Crwd, hpe, and wkme are companies I’ve been watching for a few months now. Couple others I like are IRDM, ERII, and CGNT. I’m waiting for HPQ to get above 40 to see if my calculations are correct. I’m thinking WKME will be around 10$ in 2 years. Good luck
Short ERII overvalued as fuck this stock will go down below 12$ by August. Their product is trash they just spend a lot of money on marketing instead of product development and they’re beginning to pay the price. 🤙🏽Buying 10$ 8/16 puts all day everyday 🤑🤑🤑🤑🤑
Yeah, it's nice they have some cash flows from the utility business. I'd been watching ERII, but it's so expensive. This is much more reasonable.
Then you missed a big opportunity. BMI up 44% YTD. ERII up 46% YTD. MWA up 50% YTD. ITRI up 48% YTD. Veolia up 23% YTD. WTS up 25% YTD. Without water society doesn't function.
Here are few companies I like with less than $10 billion market cap: 1. Energy Recovery (ERII): They are into desallination and waste water treatment. 2.CLNE 3.SOFI 4. Evoqua Water Technologies (AQUA): Again, they are into water treatment. Water is the single most important commodity.. 5. RKLB: After Spacex, they are the best positioned to profit from space race 6. Canada Goose: Very strong brand value...
The idea behind this post was to determine which stock (NEE or CWEN) was better for a growth portfolio. Are you suggesting that BEP, ORA, FLNC, ERII, or AY are better options, and if you are, then can you single out 1 company?
NEE is enormous and has a substantial amount of legacy fossil fuel holdings and transmission assets. The largest subsidiary is Florida Power & Light Company which seems like a long term liability considering the political climate and climate change risk in Florida. A more comparable company would be AGR with potentially better long term asset locations. CWEN is more focused on relatively new renewable energy assets in diverse locations. A more comparable company is AY with more diverse global assets. Some often overlooked renewable energy sources are under represented in the above companies. There are more specialized companies such as BEP for hydropower and ORA for geothermal that can give you some diversification away from just wind and solar. In terms of riskier renewable growth stocks there is FLNC for energy storage and niche water handling energy efficiency company ERII.
ERII and CWCO. Look good but I’ve barely researched this
ORA global leader in large scale geothermal power generation. No one else does it at their scale and efficiency. ERII leader in energy conservation and recovery for pressurized water filtration systems. Essential components for making desalination more economical. Other potential growth areas include pollution remediation and lithium extraction.
TPL and STAA. Honorable mention for ERII TPL is in my top 3 of names I want but don't own. STAA is a fast growing medical device name. Expensive, but explosive growth.
Yes. Love ERII. Holding strong thru the bear market.
Anyone looking at ERII could be something to watch
CWCO, ERII, VEOEY, and SZEVY are the best exposure to desalination, if that's what you're looking for.
All a bit high priced right now, but the top of my watchlist is: FCX ICUI ERII ROK ZBRA
Batteries get hyped, but pumped hydro provides the vast majority of long-term energy storage essential for renewable power! Energy Recovery. #ERII
Nice post. I love DAR as well. ERII is interesting. Do you know why they traded flat for so long? It seems to have steady growth and low debt!
Maybe desalination? BIP, ERII and ECL? I don't own any of those, but they might be a decent way to invest in water.
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You would also like ERII Very strong company in niche. Hugely important in coming years
Some really good growth stocks that are stable and priced fairly (IMO) and no one really talks about: ERII, DAR, camping and leisure stocks ONEW, CWH, LAZY I also like VIAC, GM, MRVL as next generation of boomer stocks that have catalysts coming up that can make them excellent growth stocks for the decade Alternatively, I really like the makeup of CURE. It's a triple leveraged fund, yes, but it's the only one I'd buy and hold. The holdings aren't going anywhere (in a good way; their prices will go up!)
You do realize peak oil was a thing, right? We got the shale revolution. Advances in farming continue to boost food yields. Precious minerals we need will be mined in space (seriously) and new forms of energy will be discovered. Also, we will just get more efficient in using that energy. As for water, innovation exists and is a thing. Look at what ERII and FSI do. Really need to think about this, man. Preferably when not high, when every thought feels all the more logical 😂 Lots of investment opportunities in this. Look at KRBN, CORN, SOYB, etc.
A few unique ones: FSI - Small but growing environmental company that makes a chemical that prevents excess water evaporation. PE of 14. I see a trajectory like that of ERII MLHR - Herman Miller, maker of the Eames chairs. Iconic American brand. Mostly office furniture. But luxury. Have maintained revenues but still priced below pre pandemic levels. BLBD - Another iconic American brand. Maker of Blue Bird buses, including electric ones. Already getting orders for them. Revenues down this year, but orders for the next decade will run like a banshee with need for NEW buses. UGRO - This is another small company. Comparable to AGFY. But tiny market cap, recently uplisted, half market cap is cash on hand, growing and expanding internationally.
ERII creates parts for desalination facilities. They’re undervalued imo. You should check them out.
The stock is almost 140% off it's high price. There is so much overhead supply and buyers caught overhead, they'll be selling into any price increase hoping to cut losses or breakeven. Price could stay depressed for months or years. Waste of time. Look for stocks making new all time or 52 week highs right now. [AMC Chart - Overhead supply](https://drive.google.com/file/d/155NdDNsV0M77iuMiS61cUC2l-J4mvJRe/view?usp=sharing) [ERII - No OH supply (Red line is where I bought it yesterday)](https://drive.google.com/file/d/192SQhgNO4ZdOK6XrEWjn-Oe9ubppg7Qf/view?usp=sharing)
AQUA and ERII both deal with desalination and water treatment...world is running out of fresh water. Both are solid plays and profitable!!!!