Insider Briefing of 29 October, 2020
Helping you thrive in the world’s ONLY vital, scarce and recession-proof market
The Philanthroinvestors® Founder and CEO joined us with the first Water Philanthroinvestors® Ambassador. Hear what he says about how the alignment between his Philanthroinvestors purpose and OriginClear's mission drew him to invest... I shared our recent hot news coverage and yes, the details on why the sudden surge in campsite interest IS a big deal for our modular systems business...
FEATURED OR COVERED IN THIS BRIEFING — QUICK LINKS
- News on OriginClear's filterless technology cleaning produced water in Kern County oilfields.
- Business Observer's article on our Water as a Career™ initiative and creating Waterpreneurs.
- The ESG success of a "pure water play" company and how that relates to OriginClear.
- How Jack Ma and a tiny ant launched the biggest IPO ever and what that forebodes for the banking industry.
- The campsite that sold for $56 million and how that relates to our Modular Water Systems™ business.
- Why our packaged Modular Water Systems™ are rapidly gaining wide acceptance.
- Philanthroinvestors CEO, Arte Maren, talks about what help had to do with their 4000% growth and getting into the Inc 500 a second year in a row.
- Our first Water Philantroinvestor Ambassador tells his story.
- Ambassador Ricardo Garcia tells WHY OriginClear was chosen.
- How OriginClear's mission aligns with Philanthroinvestors "invest with a purpose" motto.
- How can helping others generate a good return?
- How our Water Ambassador's plans for the future align with our activities.
- OriginClear's offering and why investing is a sound move.
- Upcoming releases to look forward to.
Transcriopt from recording:
Good evening. It is once again time for the CEO briefing, and it's a pleasure to have you on board. I'm going to go ahead right away and share the screen. This is going to be a fun one. Let's rock and roll.
So again, "Water is the New Gold". You heard that a few times from me, but it's really true that... There's some interesting information in this report that I'm going to give you that underlines that in the markets as well, so, very interesting. Briefing number 85, we've broken through a year and a half on this and it's a pleasure to have you on board.
So of course, safe harbor statement, you know that these are forward-looking statements and we try our very best to make them accurate, but they are not prophecy.
Cleaning Oilfield Produce Water
All right. So, bakersfield.com. I got called the other day from Bakersfield, Kern County, which is the county around Bakersfield, which is in central California, is actually the nation's most oil productive county. There's a whole story around oil-filled wastewater. In fact, what I'll do is I will share that story with you right now. Sure enough, here's a story in bakersfield.com that came out and it talks about... This is a Cal State Bakersfield engineer who's working, running tests on how well Los Angeles based water filtration company OriginClear's chemical oxygen demand, blah, blah, blah, being reused in local agriculture.
Price is Too Low
The gentleman who interviewed me, John Cox, who's covered us before was like, "Okay, so what about oil-filled water being reused for agriculture?" And conceptually, as he says, it makes sense. So then, cut to my comments on it. There's a bunch of people responding and so forth, but as I commented down at the bottom here, So we're not currently doing work in oil fields as we stated, but, the problem is financial incentives and the reason is that the price of water is too low.
Water Futures Market
I'll show you a spreadsheet that points that out, but note how I talked about a PR campaign. I'll get into that a bit more. So, what's the problem with oil-filled wastewater? It's not that it can't be cleaned. It's that it is cheap. In fact, they say water future's market that's been built that trades in water, but the price of this water on this market is $500 an acre foot. Well, let's take a look at what that adds up to.
If you do the math, which is what I did here, even at $1000 per acre foot, the price per barrel of water is 13 cents. Last time I checked oil was around 40, 35, $40 a barrel. That's a huge difference. So, it's not a financial good idea. I mean, nobody's going to do this just for the 13 cents a barrel. Why? Because they're making 40 or $35 a barrel from oil. The only reason it would work would be because of a PR campaign, because the oil companies are aware of PR. They are driven by that. And so that's really the way it's got to go. It was an interesting story and a lot of fun to talk to them.
And then we were also interviewed by, as I was saying, another company, that's in Florida. This is a story in Business Observer, Florida. "Is water set to become a hot new commodity for investors?" This is a cool story because it talks about how we are building the Waterpreneur™ concept. People who lease the firm's equipment, which runs the gamut from pool cleaning devices, to machines that can treat water for entire trailer parks and then sell it services. Then it also talks about how we expect to do this year financially, which as I've been telling you, we expect to be up. All right. So that's that story.
Growth and ESG Matter
Let's jump back to our presentation and let's move to the next story, which is about growth and ESG. What is ESG? Environmental and social governance. Environmental, Social, Governance. Essentially, these are companies that have a grasp of how to be good stewards for the environment. They are good for society and they have governance that puts that in place, ESG. Now, as I've said before, that currently has about $22 trillion of assets under management and it's growing fast.
Why are we mentioning this? Because there was a story in CNBC about how utilities, which is municipal stuff like electrical and water, aren't exciting, but one stock is surging thanks to growth. This is a company called American Water Works. It's stock is up 25% this year. So, why is American Water Works up so much? It's because they are a pure play. They're only about water and there's very few companies in the US that are that focused on the water play.
A Pure Water Play
Utilities aren't the most exciting and, so while the overall Utilities Group is flat, American Water Works is up. Basically, as this guy says here, and I'm not going to go on because I don't have the... The thing closed off to me, but no one has their credentials as far as ESG or their performance track record, pure play — water utility. I'm going to add that OriginClear is a pure play water company.
Of course we are a tiny fraction of American Water Works. After all, American Water Works each year spends a billion dollars only on acquisitions. Of course, they make big acquisitions. So the 10 acquisitions of hundred million dollar companies, and you just acquired a billion dollars worth of companies, but they are really a very good company. We actually were connected to them indirectly when we were doing the WaterChain™ play in 2018 and I'm sure we'll see them again.
The Democratization of Finance
Moving on here, There is a cool thing going on which I call the democratization of finance. It's a story that came out from my friend, Roger James Hamilton, a guy who you must follow on Facebook. And he tells a story about how Jack Ma and this Ant created the world's largest IPO $36 billion, and the beginning of the end for the banking industry.
Let me share that story with you right here. I'll just quickly summarize what he says. It's a very long story, but basically $34 billion in the world's largest IPO. And what is it basically? It's the Amazon of finance, essentially, or even the Alibaba of finance, even better, that's a better way to put it because Alibaba is intermediary. And basically here's what's cool about it, they have all kinds of investment platform, credit scoring system.
The Growth Area
Now this was a cool. This is what our partners at Water Philanthroinvestors® do. They give credit even if other banks have given a poor credit score. This is the growth area, which is, people who can't get loans, because banks are stupid. And, but of course, ant here has the AI, the artificial intelligence to make it happen. And it's three, one, zero process, three minutes to apply one second to get a credit decision and zero people involved in the decision.
These people are going to destroy the banking industry. As Bill Gates says, the world needs banking, but it does not need banks. And Roger James Hamilton says, "Banking is one industry that will be massively disrupted in the coming digital decade." And he mentions also other industries ready are education, healthcare, energy, automotive transportation, every industry still relying on middlemen and government itself.
Which wave are you riding? Well, definitely water has a lot of middlemen and the middlemen are going away as water treatment is being done by the end user directly. Definitely that's a hot area for us and I love what's happening with the tiny ant, as we might call it.
Campsites are Hot
Now, I promised you last week to talk to you about this campground purchase for $56 million. And that's a lot of money for a campground. Why is this going on? What's happening? Let's take a look. I'll go back to the presentation here and we got that article.
Let's take a look at what Dan Early said about it. He says there's going to be a massive upswell and new development and expansions of campground and RV parks. All right. And of course it'll tail off, there'll be the bloom, and then people get bored and move on to new form of R and R.
Acceptance of Packaged Systems
Not so sure, but that's what he says. Now, these project's sites will be regulatorily governed to ensure people don't die from bad drinking water or contaminate the local environment with waste water pollution.
Modular Water Systems
Streamline the regulatory process, design and build, that's us. They need to know what they're going to spend so that we are very good at these package systems. "Modular deliveries for both potable water and wastewater treatment systems will find major acceptance and adoption by end users." So we are not doing custom construction on site. We have these Water Systems in a Box™ and this is going to be huge.
That's all the story so far, and now I'm going to come to an important next part of my story. And it's summarized in this logo, which is, "Entrepreneurship and investment with impact will save our planet." And this is a message from Philanthroinvestors®.
The story behind this is that Ivan Anz with his chairman, he's the founder, and he has a chairman, Arte Maren, and they both have taken what was originally a really smart real estate idea, but then they added the social good side to it. And the thing flourished. Now they've taken it from real estate now, and they're growing into other areas like water, where they're partnered with us, but also energy and other areas as well. I'm going to go ahead and ask Arte to turn on his video because we have our first WPI ambassador and he's an investor. Arte, It's a pleasure to have you on the show.
Arte: Thank you.
Riggs: Arte you're not only the chairman of the overall Philanthroinvestor operation, the 'organization eye' as it's called, but also you're the CEO of Philanthroinvestors, Inc. What is a Philanthroinvestors ambassador?
Help and Growth
Arte: Well, you mentioned that we've grown and we help a lot. And I want to define that growth just real quickly by saying that this is our second year in the Inc 500. In fact, we're in the Inc 100, that not only represents a certain amount of growth, but it also represents a lot of people being helped. We have now directed a lot of that attention into OriginClear and helping with water.
Riggs: You certainly have. Thank you!
Arte: And specifically to answer your question, which I think is going to be very interesting, certainly for all your investors, is that, growth takes momentum, and momentum can't depend upon just employees or, I mean, if OriginClear has 300 staff or 3000, it creates this all momentum, but we know that this is a closer to a groundswell and therefore we have to depend upon others, and who are the others?
It's a natural flow. A philanthroinvestor is a philanthroinvestor because they're interested in helping, yes, they want to make a profit, but when you can help them make a profit, it's kind of ideal. So they become philanthroinvestors, and as a natural flow, they become ambassadors because you want to share what is good news, and you want to share what works for you, and that's what's happening now. And that's why we have as an example, Ricardo Garcia, but better hear it from him directly. I just wanted to kind of give an overview of why we have ambassadors. And again, the answer is because it's a natural flow from an investor into sharing the good news with others. So let me introduce you to Ricardo Garcia.
Our First Water Philanthroinvestors Ambassador
Riggs: And here he is Ricardo, welcome aboard. This investor supports, we've computed at 300,000 liters of treated water per month through his investment. And not only are you an ambassador by which I understand that you're passing the word, you're essentially recruiting people to the cause, but you're also an investor, Ricardo, how did... First of all, who are you? Where do you live?
Ricardo: That's a very good question. Who am I? Well, I happen to be an engineer by trade, and I happen to be in Puerto Rico at this time.
Riggs: Fantastic. In fact, you're in a lovely town, and where my sister-in-law goes to meditate once a year.
Riggs: And you're with a high-tech company I understand.
Ricardo: Yes, I am. Well, it's called a cat herder.
Riggs: He has herd cats.
Ricardo: I basically yes, pretty much. I bring very talented people together to deliver high quality business and technology solutions.
Riggs: That's fantastic. And now, you're not a huge, I mean, you're not, forgive me by saying so, but you're probably not in the half of 1%, you don't have a huge amount of money to invest, so what brought you to invest in OriginClear?
Ricardo: That's a very good question. So first of all, there's the cause, right? I mean, you're doing something that is good for the environment. I have had the experience of seeing or visiting places where water is not as abundant as it is where we live in the states in Puerto Rico.
When you hear about water scarcity, I can see that, right? And if resources are not properly managed, aren't cared for, we create scarcity. And as a result, anything we can do to basically help lower the waste of these resources and better use, is something that is going to help us avoid these things, that if not properly done, could be unmanageable.
Making a Difference
Riggs: It's funny. You're talking about... You brought up the high purpose first. We like to talk a lot about how people are going to make out really well, double digit and so forth. But the first thing you brought up was really making a difference. That's interesting.
Ricardo: Yes. And maybe that's the other reason. To me, making money is the byproduct of doing good, in this case.
Ricardo: Right? So you don't really have to worry that much about how much you're going to bring in, what's going to be the return, because you're working on a business that is sustainable, but it's by nature, by design, and supports life. Water's one of those things that, you can't go too long without it, right?
It seems at times magical the way that things align. A business that is pro-life, for survival, it helps the environment. It is sustainable, and provides good dividends, good interest, good opportunities for growth. So rarely you see the planets aligned themselves in a way that makes the decision easier. Usually investing takes a lot of courage. You basically have to be able to stomach the ups and downs.
Ricardo: And rarely do you have the opportunity to have some control over it. So I think with OriginClear, because of the way the investment is structured, it eliminates a lot of the fear and anxiety normally associated with investing. What I've learned is that when you come across an opportunity that involves money, and you feel at peace when you make the investment, that's a great feeling, because usually where you put your money, you put also your stress and in this case it just became quite natural.
Riggs: That's amazing. What you're basically saying is that, it's very unusual to find that kind of combination. Is that what you're saying?
Riggs: That's fantastic.
Ricardo: I don't know the statistics. I don't know how often this shows up in history, but I would say it's probably not very frequent.
Riggs: Yes. That's fantastic. Thank you.
Right Time — Right Opportunity
Riggs: Basically, I wanted to get an idea of how you got to know Ivan and Arte, and the whole gang.
Ricardo: Well, that's a very good question. Ivan and I met a couple of years ago. We were involved in the personal development, I guess, training? Or this constant path for improvement. And we happened to meet there, and Ivan was already a very successful investor on his own, and good at creating businesses in Argentina. We just met, and then we connected really well.
And then we just basically set out the intention to do business together at one point. We just didn't know what kind of business, at what point in time, or about what. But we have been crossing paths along this journey. And essentially now it was like the right time, about the right opportunity, about the right cause. So you could say there's some serendipity there, that has brought us together.
Helping Others and Generating a Good Return
I have met Arte through Ivan. Arte being the Chairman CEO of the companies that Ivan has founded. Essentially that has given me access to someone that is very wise, and that is a great business mentor. I basically get the opportunity to do business with a friend, someone that I trust, that I have met before all this investment came together, someone that I admire, someone that I trust, that's given me the opportunity to invest in something that is worthwhile.
And then having the opportunity to learn from someone who's very wise, and who creates business that do good, not just business for the sake of speculation and getting rich, business for the sake of making a difference, helping others, and generating a good return.
Riggs: Well, that's so true, because in June is when we met up, when Ivan happened to serendipitously, meaning through chance, end up in one of my briefings, and then went to Arte and said, "There's this guy, Riggs." And Arte goes, "That guy, Riggs. I've known him for too long." One thing led to another. So in fact, Ivan tells us that you met on August 12th, 2012, at 8:37 AM.
Ricardo: That's probably right.
Riggs: Right? That's too funny.
Riggs: That's too funny. I hate to say, Ricardo, but I think your green screen button is still on. I don't want people to say, "Does this guy realize that we can see the background through him?" So just to let everybody know that we know that this thing looks, It's not because Ricardo is actually a poltergeist, it's a Zoom effect.
Ricardo: I'm very real.
Future Plans — Giving Others Opportunity
Riggs: There we go. That was perfect. But Ricardo, what are your plans for the future now that you're a Philanthroinvesting Ambassador?
Ricardo: Well, many. First of all, I have this opportunity to do good while helping others do good. So basically like all the things I'm able to benefit from help the environment, generate income, generate wealth, grow. Now this is a vehicle that I can use to extend this opportunity to others. And it's something that very few people have access to. Very few people have access to high quality investments, that provide a certain degree of safety.
And not safety because of guarantees or anything like that, just because you can see that the needs and the trends, and then just basically raise the awareness, and give people an opportunity. Just like you mentioned with the ant story, like you're giving people the opportunity to invest into something that they can do really well with, but they probably wouldn't have had the opportunity to learn on their own, because what they're exposed to not necessarily provides this quality.
Riggs: Wow. Yeah. In fact, Keith Roeten has high praise for you. He's one of our longtime investors, and gave us a great testimonial. He says, "Very excited about the positive possibilities and growth of OCLN and Philanthroinvestors. Rick said it well." So thank you Ricardo. And I invite anyone who wants to drop in, a little chat, I'll answer questions, or give you a shout out. Meanwhile, I'm going to continue showing you a couple more things, and don't go, because we're not letting you go just yet, Ricardo. So, hang in there.
Riggs: I'm going back into share mode here, and I'm going to quickly cover... Many of you guys have seen this before, so I'm not going to spend much time on it.
How can you participate in this future? Exactly what Ricardo has been talking about.
Take Advantage While You Can
And then this corporate bond, which again, I'm not going to spend time on. And some of these features are going away, by the way. There's some changes coming, and you may want to take advantage of this while you can.
So those of you who've been around for last couple of years, you've noticed that the terms of our investments have got more and more, well less and less over the top, shall we say? Because we've gotten more and more secure and more able to project our investing capabilities and we're now bringing in some amazing investors. I would strongly recommend you give the team a call.
I'm not going to go through this, but we know why you're investing, which is basically to help our own investing with a purpose happen.
You should dial, the basic way to do it is go control L which will put your control L as a keyboard shortcut to put your cursor in the browser address, and then just type in oc.gold/ken and you'll get a chance to schedule a call or just email us or call Ken. Existing investors please take Ken's call, you think you'll be very excited with the latest news he has for existing investors only.
Okay. A bit more here I'm just telling you that I just spoke to you about what we call a regulation D, that's the Securities Exchange Commission has this designation and it is an unregistered offering that they have not passed on the merits of, so that's that part.
Videographer Stephen Eckelberry
Now, next week we're actually going to have a clip from the coming documentary and here is a picture of my brother Stephen in my front yard in Clearwater Florida, as he has way too many cameras. Literally all of those cameras were trained on me for this cool interview. He also has gone up North to visit with Dan Early, that was that beautiful interview you saw last week, he's going to Texas on Sunday so that on Monday he'll be shooting and he's just doing a bunch of coverage and I believe Arte he'll be interviewing you too.
Arte: Yeah, I'm looking forward to it.
Arte: I have a lot to talk about as you know because of my career with the pool industry.
Riggs: Absolutely. I think we should actually play some of that next week. We'll get some excerpts from that and play that, that should be... Because Arte actually you were a year with Teledyne am I right?
Arte: Correct. Training all of their clients in management, all their clients who build pools or were involved in the pool industry. Yeah.
Riggs: Our Pool Preserver™ is doing amazingly well. We'll get a report on that as well, so do show up next week and you'll get to see some good stuff.
So Ricardo jump back on, I'd like everyone to be able to say goodbye to you and again we tremendously appreciate your investing in the company, by the way, Ivan tells us that the Spanish subtitles of the testimonials for Water Philanthroinvestors are in the Philanthroinvestors YouTube channel. Water Philanthroinvestor ambassadors will be able to disseminate in Latin America and Spain. Wow, that's super cool.
In fact, we should take a look at that while we can, because YouTube Philanthroinvestors has this... Here we go, I'm going to go ahead and pull that up and just see what that's about because Water Philanthroinvestors,
This is the one with, that is set up to play without the Spanish subtitles and then there's a version that has them with. So, if you just go to Philanthroinvestors, you will get a chance to see our various investors talking about how they are Water Philanthroinvestors, et cetera.
Without further ado, I'd like to thank everyone for having come on board, Ricardo, thank you again, Arte you the man and we'll have a good show next week. Let me just see, I've got a couple messages want to make sure that I activate subtitles. Okay. We have to activate subtitles. Apparently that's something that we got to do. All right, activate subtitles, yes because they're off. Subtitles are, Oh God, now I've been shown up.
Well, the ones that I have here, I'm not going to bother everybody because the subtitles I have are English, so it's a different video which we'll do later. Oh, I see people in Latin America will automatically have their language. That's why I'm seeing English. Anyway, thank you all, it's been a great pleasure. Everyone enjoy your weekend. Thank you for joining us and JR thank you for your kind words. Nice to see you all again and as you say, congratulations. Good night all, enjoy your weekend.
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