Stephen Percoco, CFA
Value, special situations, bonds, newsletter provider

Consolidated Water: A Speculative Bet On Desalinated Water

Executive summary:

  • We estimate that two development projects, Bali and Baja California, have the potential to more than double CWCO's earnings over the next 4-5 years.
  • CWCO's current valuation is consistent with its peer group; so the potential of the Bali and Baja California projects is not currently reflected in CWCO's share price.
  • If successful, these development projects could more than double CWCO's share price, producing a compounded annual return of about 20%, which would be realized over time as each project achieves its milestones.
  • These projects are highly speculative. In addition, CWCO's core business faces certain challenges to which investors should pay attention.


Based in the Cayman Islands, Consolidated Water Company (NASDAQ:CWCO) develops and operates desalination...

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