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I'm an avid trader and stock market analyst. I'm always on the hunt for a great day trade or swing trade and of course look for the next stock to hit a home run and make it from the OTC to the big boards. Fundamentally, I'm a trader and my decisions are day to day 60% of the time. I look over... More
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  • OriginOil Takes On Halliburton 0 comments
    Jul 8, 2014 12:20 AM | about stocks: OOIL, HAL

    The industry focus on water treatment is overdue, said David Burnett in a Pure Stream Technology Report. The professor at Texas A&M University who is an expert in treating water from oil and gas operations states,

    "The thing where technology needs to improve is where we are using water. It is the area where companies are laggards," said Burnett. He is on the committee advising the EPA on the environmental impact of hydraulic fracturing on water supplies."

    With the announcement of the company's recent findings that OriginOil, Inc.'s (OTCQB:OOIL) EWS technology had shown to be 60% more energy efficient than that of a power house like Halliburton, I had to dive deeper. After looking over the findings, I'm that much more convinced that OriginOil could have great potential within this industry, which is still growing. BCC Research reports the market for equipment to treat wastewater from fracking operations and conventional wells is predicted to grow 9 percent by 2018...So let's get to the numbers:

    (click to enlarge)

    There's almost a classic David and Goliath story here and in my opinion, the numbers weigh in favor of OOIL. Even though Halliburton (NYSE:HAL) is a much larger company with a multi-billion dollar market cap and a share price nearly 370 times higher than OOIL, it's the developmental nature of OriginOil that supports what I'm about to state next:

    Not only is OOIL's system half the size of HAL's but pound for pound or should I say barrel for barrel, the EWS CLEAN FRAC technology buries the competition's energy efficiency by more than 60% with everything else remaining constant. These numbers aren't something to bat and eye at either. Not only does the EWS technology save money through cleaning frac water flowback but it also curbs energy usage on project sites by more than half that of the major market players.

    As OOIL continues to push forward in the industry, I'd say that the company could be setting the stage to soar leaps and bounds above its bulky competitors through a more LEAN approach to both production and system design. The scalability of OOIL's EWS technology also performs as an incredible asset for the company in that it should be able to achieve the same results as its systems grow larger and by the time the CLEAN FRAC system is even remotely close in size to something similar to HAL's, the company may be able to realize exponentially successful results compared to the competition.

    The OOIL vs HAL debate seems to be concluded here with OriginOil winning the fight from an operational standpoint. Bill Charneski, general manager of the OriginOil oil & gas division states, "Whether EWS technology powers a licensed system or CLEAN-FRAC itself, the technology is ready for commercial adoption. Working on the integration of the technology for end-to-end water treatment systems...is a crucial stamp of approval for the OriginOil team."

    After sizing up the competition, I would say that there is a strong argument that OriginOil is quickly becoming a big player in the Clean Frac industry and 2014 could mark a major tipping point for the company. There's been scrutiny from some in the investment community as penny stock sites jump on the company's success but after watching this trade over the last month straight, not only has price increased by more than 50% at times but liquidity has also begun to pick up quite nicely; numbers don't lie.

    In Monday's session alone, OriginOil traded more than 300,000 shares and managed a mid day bounce with heavy buying coming in all the way up to the closing bell. In the small cap world, there's always skepticism but in the case of OOIL, I think there are enough facts to support the idea that this company isn't just another "emerging growth company" but a real operation looking to strategically build its footprint in an industry slated for near double digit growth through 2018.

    Disclosure: The author is long OOIL.

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