Bioshaft Water Technology (BSHF) is a designer and manufacturer of wastewater treatment facilities. The two-year old company conducts most of its business in the Middle East, the United States, Central and Eastern Europe, and Asia. In fact, last month, Bioshaft Water said it signed an agreement with a company in Qatar to help expand Bioshaft’s presence in that Middle Eastern country. It is expected that demand for fresh water will only increase as the world’s population expands. The bottled-water industry is a $47 billion on its own, and that doesn’t encompass the need for water for basic sanitation.
Bioshaft’s treatment plants are estimated to reduce costs by 40 percent, use 70 percent less energy and produce 95 percent less sludge than traditional water treatment facilities. Typical construction of a Bioshaft plant costs between $10 million and $20 million. Earlier this year, California-based Bioshaft won a $56 million contract to build 13 treatment plants in Baghdad, Iraq. In June, the company said it submitted a bid to build seven treatment facilities in Dubai. Results of the bid are still pending.
The company has about $344,000 in cash on hand and a book value of 15 cents a share. According to the United Nations, over 1 billion worldwide do not have access to clean drinking water and over 2 billion don’t have access to water for basic sanitation need. Bioshaft could be well positioned to take advantage as water demand surges and continues to become a commodity.
The company, with a nearly $80-million market value, has yet to be profitable since its inception in 2006. Bioshaft shares closed today at 88 cents on volume of 156,000 shares, less than half the approximate 321,000 daily average. Bioshaft shares have traded as high as $3.26 in the last year.
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