If there’s one theme that should be perfectly clear with the new bull market that took root in March of this year – the first leg of this secular bull market of the past decade that can reasonably be understood as driven by retail investors – is that the millennial investor has “arrived” as a major force driving stock market valuations and trends.
That has enormous consequences moving forward. Most significant among them is no doubt the “ESG” revolution – the idea that capital will flow increasingly toward companies that manage to combine financial performance with a positive impact on Environmental, Social, and Governance priorities. Do good while doing well, and the new investor will want to profit by supporting you.
Morgan Stanley researchers believe ESG investing may drive as much as $57 trillion in capital flows over the next ten years.
One company that seems built for this trend is Eco Innovation Group Inc (OTCMKTS:ECOX), a company that discovers, develops, and commercializes promising inventions with the dual capacity for commercial and ecological success.
It’s worth having a look at the stock this morning after ECOX released news of its first major leap into commercial success, inking a deal with a clean energy technology worth six figures up front and the potential for a great deal more to come over the near term.
Renewable Energy Bull’s-Eye
The main story here is that Eco Innovation Group Inc (OTCMKTS:ECOX) is “for real” as an ESG stock play for speculative investors searching for prospects with big potential to perform on traditional metrics while serving a critical role in impacting the well-being of the world in a positive way.
This leap in credibility comes as the company just turned the corner from development-stage to commercial-stage operations as it announced the signing of a contract for the manufacture of Renewable Energy power plants. According to the release, the company has already received an initial payment of $100,000 for the first tranche of power plants to be manufactured.
“This is a significant event for our Company in several ways,” noted Otey-Raudes. “While we are undoubtedly excited to book this initial payment, we firmly believe it represents just the tip of the iceberg given the rising excitement we see attached to this technology as a revolutionary innovation in the clean energy space. The Agreement fits our strategic approach to environmental sustainability and socially responsible technology development, and offers an attractive value proposition to the individual and institutional consumers who are core to the sea change in energy use that Eco Innovation Group promotes. Environmental sustainability and social responsibility are central to this rapidly growing target market recognized for its growth prospects, driven by consumer preference, competitive imperative, regulatory impacts, investor mandates and capital markets.”
This serves to establish the foundational data point in the ECOX topline growth story, which is now underway.
The leap from development-stage to commercial-stage operations is the “golden transition” that often validates an opportunity by removing that last hurdle of credibility, answering the question: “is this the real thing?” – a lot of small-cap stocks have big plans and persistent prefatory ramps toward the commercial starting line. But not all of them actually turn the corner and start bringing in significant cash flows.
The Skinny
According to the release, ECOX will manage the installation of the Renewable Energy power plants for end-user customers. While this initial arrangement represents a contract for a single version of the Product, potential expansion into the manufacture of additional models is an included element in the Agreement.
In other words, this is just the first piece of the relationship, with more to come in future communications as the agreement expands.
Eco Innovation Group Inc (OTCMKTS:ECOX) will provide supply base management, production of the Renewable Energy power plants, inventory of both work in progress and finished goods, physical delivery, and financial services relating to ownership of completed and installed units. The contract allows for expansion of the scope of services to include quality and service level agreements.
The release also notes some additional details about the core product in play here: consumers can produce clean, green energy at a fraction of its typical cost. The core technology utilizes solar panels to qualify for available financial incentives as well as advanced magnetics and induction steam heating to produce clean, green, Renewable Energy 24 hours per day, seven days per week, 365 days per year.
