PEH Research Report, page-12

This is the post by @Tyler80 minus the reasons for moderation.



Hey everyone,

This is my own personal research which I put together before buying to PEH - would have shared it earlier but was unfortunately on a little HC break.

Most of this has been covered in bits and pieces along the way, but I thought it might be helpful for some of the new holders / soon to be holders to have a basic background analysis on the key points of PEH.

By way of disclosure I hold 600k shares, and actively increasing my holding. Report below:


Firstly - what is EnviroSuite?




The first document I will be focussing on here is the Half Year Results and EnviroSuite 2.0 Progress report - the most exciting part for me is the New Business Momentum section, as follows:



Here is a company with a $18m (approx) market cap with a growing, blue chip client base - not many specs I'm invested in can match this.

And this is the part which really whet my appetite when I first first put onto PEH - the market opportunity for EnviroSuite



This then leads into the 23rd May Further Contract Wins announcement, which is probably the best indication as to where the company is set and moving forwards into:



So for clarification;

* New Client Contracts worth $120,000
* Blue Chip companies (BHP!) have resigned (either 1 - 3 years), with the total re-signing fee being over $500,000.

Kicking huge goals so far - and this is all before the real momentum starts, with the Announcement on 23rd July titled "International Opportunities for EnviroSuite"



I've underlined the 2 key messages for me in this announcement.

1. The announcement explains that there are 3 different tiers of interest in EnviroSuite from the second round meetings; Multi-National companies(note companies, not company), technology providers and Government.


2. A potential acquisition opportunity, as well as further joint venture technology proposals (again, plural).


This obviously leads into the latest announcement *drum roll*




Now I put a big red box around the heading, well, basically because I could - it's epic, so it deserves it.

I also think people have missed a trick by not really reading this announcement and drilling down into it, and this is the reason I topped up significantly after the ANN.

Firstly, who is Odournet? Below taken from their website.

The Odournet group

Odournet is an international group of odour research and air quality consultants that develops, manages and delivers top level expertise to assist industry and government authorities to diagnose and solve environmental odour nuisance related problems, and evaluate consumer products and materials to support product development, consumer trials and proof of claim. Odournet is the global leader in the design and development of odour measurement equipment, and proficiency testing schemes.


So, Odournet is the worlds leading company specialising in diagnosing and solving environmental odour nuisance related problems - and they've partnered with a $18m minnow ASX stock, but the intrigue continues ...

The second highlighted section of the announcement is the real bones of it all for me, so it's worth repeating;

"Odour monitoring equipment and EnviroSuite software platform with online modelling and prognostic capabilities for a major wastewater treatment development in Oman."

So what we have here is Odour Group wanting to integrate their Odour diagnostic tools into EnviroSuites software platform, for a major wastewater development in Oman?

What's even better is the next part "the proposal has been requested by one of three multinational companies that have entered a bid for this tender".

So what we have is a major multinational company who is bidding for the tender to build the waste water facility in Oman - they obviously have past dealings with Odour Group, and want to have a key USP being the integration of Envirosuite monitoring and Odour Groups environmental expertise in the one package.

If this moves ahead, I can see this as being a huge income stream for EnviroSuite, as surely it would be new, proprietary software with Odour Group which would then be applied to future projects (potentially with the first multi national company)

The last part of the announcement goes on to suggest that there are other large, international companies, in a number of countries, which are knocking on PEH's door to get their hands on EnviroSuite - whether for it's standard configuration, or as a collaborative effort wherein they integrate their software within ours.


In summary, I feel we will see one of the following in the short term

1. US Government signing
2. Major US corporation signing
3. Further JV or collaboration signing

The above is the order of probability for me.

Again, this is my own research, it's not investment advice, I just thought some of you may find it interesting to read.