Poop Storms

After the worst of the wind and rain had died down from Hurricanes Harvey and Irma, and people began making their way back home, it became apparent that citizens of Texas and Florida would have more worries.  Some wastewater treatment systems were reportedly running backward in Florida.  In one Orlando neighborhood flooding caused a filter system to overflow and over 10,000 gallons of partly treated effluent bubbled up through manhole covers.  Houston experienced an outbreak of E.Coli, a type of bacteria typically found in human waste.  The Houston Health Department reported that in some flooded homes E.Coli contamination was as high as 135 times the level considered safe.

In other words, Hurricanes Harvey and Irma were truly ‘poop storms’ that left home owners and business scrambling for ways to keep out nasty water.

Flooding presents a real challenge for water and wastewater treatment facilities.  There are few companies that specialize in systems specifically designed for flood preparation.  Hydrological Solutions based in Waller, Texas just northwest of Houston is one of them.

The company has developed and trademarked a the WIPP system  -  Water Inflated Property Protector.  The system is composed of large inflatable barriers that can be used for residential, commercial, industrial, and public safety sites.  The barriers are made from industrial grade vinyl coated polyester that is laminated with a base of woven polyester between two layers of flexible polyvinyl chloride.  When inflated the WIPP system is one foot think and eight feet high.  Lengths are made to customer specifications.  The barriers are reusable and can be deflated and folded for storage.

The WIPP system may not protect against all flood threats, but it can help protect key sites that reduce down time for power and water services.  It could also help protect key waste water treatment sites that could remain functional if flood waters are kept at bay.  It is also important to note that the WIPP system can be deployed far faster than the conventional sand bag alternative.

Hydrological Solutions also sells a barrier called Spil-Stop that can be used to prevent the spread of oil and other contaminants. The construction of Spil-Stop is similar to the WIPP system, but the deployment could help prevent contamination during repair jobs or when equipment fails.  The company has some competition in the market for spill containment.  Abasco, Grainger and New Pig among others all offer spill blockers, berms, dikes and barriers.

Investors interested in the market opportunity presented by flood threats in the wake of major storms, may be a bit disappointed in Hydrological Solutions.  It is a private company with a distinct company culture.  Accordingly, investment opportunity is limited.  However, it is on our list of companies to watch because of its location in hurricane-vulnerable Texas.  As the lessons from Harvey and Irma are brought to decision makers, Hydrological Solutions may benefit from its Texas roots.  A buyout by an enterprising public company could be an interesting play.

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.