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Co.'s Stock Rises as 'Forever Chemicals' Investigated in Texas

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The controversy over dangerous PFAS, also known as "forever chemicals," has hit two small farms in Texas. Find out why one analyst thinks a company with a solution is headed for a bull market as its stock rises.

Investors are watching closely as the controversy over dangerous per- and polyfluoroalkyl substances (PFAS), also known as "forever chemicals," has hit two small farms in Texas.

Ranchers there have filed a federal lawsuit against Synagro, alleging the company knew it sold them PFAS-contaminated sewage sludge that killed livestock, polluted water, and contaminated beef, The Guardian reported. The ranchers' county has also launched a first-of-its-kind criminal investigation into Synagro.

One company whose technology removes more than 99% of the substances from water, BioLargo Inc. (BLGO:OTCQB), has seen its stock go up this week from US$0.30 on February 23 to nearly US$0.41 on March 1, an increase of nearly 37%.

The company's Aqueous Electrostatic Concentrator (AEC) technology separates PFAS compounds in an electrostatic field, forcing them across a proprietary membrane system. The company said the process' energy costs are as low as 30 cents per 1,000 gallons.

Its waste stream is a fraction of that of traditional carbon or ion exchange systems, and the company combines the AEC system with a turnkey collection, membrane exchange, and disposal service. The system is modular, portable, and scalable.

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.

The Catalyst: PFAS Levels 'Shockingly High'

The PFAS levels on the farms were "shockingly high," Kyla Bennet, policy director for Public Employees for Environmental Responsibility, which is assisting in the case, told The Guardian.

The farms' drinking water tested 65 times higher than federal advisories for one kind of PFAS compound, and some meat was as much as 250,000 times above safe levels, the site reported.

Sludge from sewage plants is too expensive to dispose of easily, The Guardian noted, and the Environmental Protection Agency (EPA) allows it to be spread on cropland because it's high in plant nutrients.

At least one state, Maine, has banned biosolids after finding contaminated crops or water on at least 73 farms. The state's legislature has approved a US$70 million relief package for farms affected, Bloomberg Law reported.

"It's important to remember that farmers do not knowingly use PFAS chemicals, which are finding their way onto some farms just as is happening in other places and sectors," the American Farm Bureau said, according to Bloomberg's report.

As Many as 60% of Americans Possibly Exposed

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. High concentrations of some PFAS may lead 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 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.

You can explore a map of PFAS detections across the country on the Environmental Working Group website to see if your water may be affected. The group said there is contaminated drinking water in all 50 states, the District of Columbia, and two territories.

More than 15,000 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. But that amount could grow to even exceed "the more than (US)$200 billion paid by Big Tobacco in the 1990s," Time noted.

'Major Bull Market' Expected for Co.

BioLargo recently launched a subsidiary, BioLargo Equipment Solutions & Technologies (BEST) to capitalize on its PFAS treatment technologies, attracting luminaries such as retired EPA senior executive Sally Guiterrez to its Board of Directors.

Parent company BioLargo is also finding success with Pooph, a pet odor control product line featuring safe and eco-friendly products 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.

BioLargo's revenues are "growing rapidly as sales accelerate dramatically," noted Technical Analyst Clive Maund on February 7. 

"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 the stock's rise because of that growth. "A major bull market in the stock is therefore expected, and it looks like it just started this January," Maund wrote.

The analyst predicted the share price could go as high as CA$1 or CA$1.10 over one or two years.

streetwise book logoStreetwise Ownership Overview*

BioLargo Inc. (BLGO:OTCQB)

*Share Structure as of 2/20/2024

"While this may seem improbable given the number of shares in issue, 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 8.67%, CEO Calvert with 3.41%, and Director Jack Strommen with 1.5%, 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$99 million, with about 289.5 million shares outstanding and about 248 million free-floating. It trades in a 52-week range of US$0.41 and US$0.15.

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Important Disclosures:

  1. BioLargo Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of BioLargo Inc.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Contributing Author Disclosures

  1. Author Certification and Compensation: [Clive Maund of] 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. 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.

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