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Pipeline Protector Awarded Another Multi-Million Contract; Shares Continue Upward
By: AllPennyStocks.com News
January 27, 2012
Pipeline leaks are a relatively common occurrence, perhaps even more frequent than most people realize. Generally, only the major oil and gas explosions make the front pages of traditional and online publications. Leaky water or wastewater pipelines are rarely mentioned. At this moment, Profepa, Mexico's environmental protection agency, is supervising containment of a 1,500-barrel spill that killed fish, injured wildlife and left greasy slicks in the Coatzacoalcos river just two weeks ago. Royal Dutch Shell PLC said this morning that it has reopened a pipeline in Nigeria after fixing a leak that threatened to keep the company from meeting its forecasted production (incidentally, Royal Dutch Shell said the leak was done at the hands of thieves). A week ago, China National Offshore Oil Corporation (NYSE:CEO), China’s largest offshore energy explorer, reported that it had resumed gas supply from the South China Sea after repairing a leaking pipeline. The list goes on and on.
In many cases, leaks can be prevented through modern technologies, such as that of Calgary’s Pure Technologies Ltd. (TSX:PUR). A diversified company, Pure Tech is an international asset management technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world. Named one of Canada’s Top Ten Cleantechs by Corporate Knight, Pure Tech’s offerings have the company well-positioned in the pipeline sector. Pure Tech has cutting-edge technologies for leak detection and condition assessment called P-Wave®, SmartBall®, Sahara®, PipeDiver® SoundPrint®, SoundPrint® AFO (acoustic fibre-optic monitoring) and PureRobotics™. In addition to sales from products, Pure Tech also derives revenue from its other proprietary technologies used in the monitoring and assessment of bridges and structures as well as water/wastewater infrastructure and related monitoring, engineering, analysis and maintenance services.
Today, Pure Tech announced that its wholly-owned subsidiary, Pure Technologies US, Inc. was awarded a contract by the Board of County Commissioners of Miami-Dade Water and Sewer Department (WASD) to provide pipeline inspections and monitoring for WASD. The contract has a value of approximately US$5.8 million.
Under the contract, Pure will provide inspection and acoustic fibre-optic monitoring of WASD's water and wastewater systems comprised of prestressed concrete cylinder pipes. The inspection and monitoring services will utilize a range of Pure's patented technologies including PipeDiver®, SmartBall® and SoundPrint®.
Shares of PUR were trading at $6 about 11 months ago, before taking a multi-month dive to $2.39. The worm has turned for the value of a share in the last month, though. A $1.4 million contract in December was followed by a series of big wins this month. A $17.2 million contract in New York, a $1.2 million contract in Maryland and now the near $6 million contract today have turned Pure Technology’s share price into a bit of a beast, surging upwards of $4 again in about a month.
Technically speaking, the downtrend has been broken and the stock has moved back above the 200 day moving average; both bullish indications for the future of the PUR stock chart. While a pause could be coming in the rapid climb, $25 million worth of new contracts and technologies that provide solutions across multiple industries puts Pure Tech in the crosshairs of plenty of investors and makes the company worth a closer look. Proper due diligence is encouraged.
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