Cadiz Inc., (NASDAQ: $CDZI) is a water solutions company dedicated to addressing water scarcity through sustainable projects. The company focuses on water supply, storage, conveyance, and treatment solutions, primarily in California's Mojave Desert.

Cadiz is the largest private landowner in California's Mojave Desert, with approximately 45,000 acres of land possessing water rights and permitted for farming, while also controlling a significant groundwater aquifer system with an estimated storage capacity of 1 million acre-feet and a production capacity of 25,000 acre-feet per year.

$CDZI also owns a 220-mile water conveyance pipeline that connects its water resources to various parts of California, facilitating the delivery and storage of water supplies. Additionally, they’ve acquired ATEC Water Systems LLC, a provider of water filtration solutions for impaired or contaminated groundwater sources, expanding its service offerings in water treatment.

The company has executed multiple water supply delivery agreements in 2024, achieving 85% contracted capacity for its Northern Pipeline, indicating strong demand for its water conveyance services.

Cadiz currently boasts a market cap of approximately $233 million while also reporting $1.5 million in revenue for 2023, all with 75 million shares outstanding. The company hasn’t demonstrated profitability since 2021, although before then reported impressive numbers relative to where they currently stand.

For a long-standing water solutions company sitting at $3.08, there is growth potential to be had. Cadiz emphasizes sustainable water management practices, including groundwater monitoring and protection of endangered wildlife, aligning with environmental regulations and community interests. With that said, $CDZI’s projects are subject to state and federal regulations, which can impact project timelines and operational costs.

With increasing water scarcity in California, Cadiz’s assets are in a position to potentially benefit from heightened demand for reliable water supplies.

The investment opportunity here is unique from anything I’ve ever traded, any sector I pay attention to, or any research I’ve ever done, but I’m going to be watching this one with a tight-eye over the next few days to see if I can enter a long position.

Communicated Disclaimer: This is what I've found through my own DD, please do your own research as well!

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