BioLargo Inc. (BLGO:OTCQB) may be uniquely positioned to take advantage of new U.S. federal drinking water standards announced Wednesday meant to limit exposure to so-called "forever chemicals."
The clean tech company's technology removes more than 99% of those dangerous per- and polyfluoroalkyl substances (PFAS) from water and has been shown in pilot studies to meet the EPA's tough new specifications for PFAS. Its stock was up about 3.6% on Wednesday following the news.
"There's no doubt that these chemicals have been important for certain industries and consumer uses, but there's also no doubt that many of these chemicals can be harmful to our health and our environment," said Environmental Protection Agency Administrator Michael Regan in a call with reporters, NPR reported.
It's the first time the EPA has set enforceable limits on the substances in drinking water. The agency estimated it will cost US$1.5 billion annually for communities to comply with the rule.
About US$1 billion in grants are also being made available to help water systems and private well owners conduct testing and treatment. According to NPR, the money is part of US$9 billion in funding for PFAS removal in the Bipartisan Infrastructure Law.
"The final rule is a breakthrough for public health," Erik Olson, a senior director with the National Resources Defense Council, told NPR. "We believe it's going to save thousands of lives as a result of reduced exposure of tens of millions of people to these toxic chemicals in the tap water."
The Catalyst: Co.'s Tech Removes Chemicals to Level of 'Non-Detection'
BioLargo's Aqueous Electrostatic Concentrator (AEC) technology removes more than 99% of PFAS chemicals from water, the company said.
The process separates the compounds in an electrostatic field, forcing them across a proprietary membrane system. The AEC's energy costs are very low, and its waste stream is a fraction of that of traditional carbon or ion exchange systems.
Testing has shown the technology removes the chemicals to a level of "non-detection," or a level at which science can no longer detect them, the company said.
In February, Technical Analyst Clive Maund noted that BioLargo's revenues are "growing rapidly as sales accelerate dramatically" after the company's announcement of a 108% YoY revenue increase from 2022 to 2023 on the strength of Pooph, its successful pet odor control product.
PFAS are a group of thousands of synthetic chemicals used in everything from the linings of fast-food boxes and non-stick cookware to fire-fighting foams and other purposes.
Prolonged exposure may be linked to adverse health risks such as cancer, hormonal disruption, and reduced immune system effectiveness, although research is still being conducted. They are called "forever chemicals" because they break down very slowly.
The EPA has noted about 70 million people are exposed to PFAS in U.S. drinking water, but that testing has only checked about one-third of the nation's public water systems. The agency said it is on pace to find over 200 million people exposed, or at least 60% of Americans, not including those who use private wells. There's even a map of PFAS detections across the country.
More than 15,000 PFAS claims have been filed nationwide against DuPont and its spinoffs and 3M, major manufacturers of the substances in the U.S., Time reported. So far, settlements have totaled nearly US$11.5 billion in damages.
Before the EPA announcement, state lawmakers in California, Vermont, and Colorado, frustrated by a perceived lack of inaction from the federal government, said they were looking at the ban of PFAS in period products like tampon applicators and period underwear, The Guardian reported.
"This is clearly an urgent women's health issue, nobody can dispute that," California assemblymember Diane Papan told the site.
According to The Guardian, Minnesota is so far the only state to enact legislation that phases out PFAS-containing period products, along with other PFAS-containing household goods such as children's toys and cookware. California is poised to follow suit.
Analyst Predicts Rapid Growth
In February, Technical Analyst Clive Maund noted that BioLargo's revenues are "growing rapidly as sales accelerate dramatically" after the company's announcement of a 108% YoY revenue increase from 2022 to 2023 on the strength of Pooph, its successful pet odor control product.
Safe and eco-friendly Pooph products are being sold through retailers like Amazon, Walmart, and Chewy. Other BioLargo subsidiaries include ONM Environmental (which spawned Pooph), BioLargo Engineering, BioLargo Water, BioLargo Energy Technologies, and Clyra Medical Technologies.
"The key point for investors to grasp is that these subsidiaries of BioLargo represent years of developmental work and investment by the company that is now being brought to fruition with market-ready products and services that are being rolled out and gaining widespread acclaim and uptake," Maund wrote.
Maund predicted a "major bull market" for the stock, which Maund predicted could rise higher than US$1 in the next one or two years.
Streetwise Ownership Overview*"The rapid growth prospects for the company's various businesses bring this well within the realms of possibility," he wrote.
Ownership and Share Structure
About 14.6% of BioLargo is owned by insiders and management, according to Yahoo Finance. They include Chief Science Officer Kenneth Code with 8.46%, CEO Calvert with 3.34%, and Director Jack Strommen with 1.46%, Reuters reported.
About 0.04% is held by the institution First American Trust, Reuters said.
The rest, about 85%, is retail.
Its market cap is US$96.91 million, with about 295.55 million shares outstanding and about 253.98 million free-floating. It trades in a 52-week range of US$0.45 and US$0.15.
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Contributing Author Disclosures:
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed.
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
