OriginClear Inc (OTCMKTS:OCLN) Is Today's OTC Focus

OriginClear Inc (OTCMKTS:OCLN) is attempting to rise off the lows on the back of President-elect Donald Trump and solid third quarter numbers. OCLN has been on a downtrend all year, falling from $.045 to as low as $.0048 this month. After surging to almost $.02 on massive volume, could a turnaround be in the making?First up, a little background on the company. OriginClear describes itself as a "leading provider of water treatment solutions and the developer of a breakthrough water cleanup technology serving the rapidly growing $500 billion world market. Through its wholly owned subsidiaries, OriginClear provides systems and services to treat water in a wide range of industries, such as municipal, pharmaceutical, semiconductors, industrial, and oil & gas. To rapidly grow this segment of the business, we strategically acquire profitable and well-managed water treatment companies, which allow us to expand our global market presence and technical expertise. To enable a new era of clean and socially responsible water treatment solutions, we invented Electro Water Separation™, a breakthrough high-speed water cleanup technology using multi-stage electrolysis, that we license worldwide to water treatment equipment manufacturers. Water is our most valuable resource, and the mission of the "Family of OriginClear Companies" is to improve the quality of water and help return it to its original and clear condition."The company's latest numbers were quite impressive. For the nine months ended September 30, revenues increased by $4,181,098 (2,981 percent), and gross profits increased by $1,367,885 (2,534 percent), over the nine months ended 2015. Revenues were $4,321,378, compared with $140,280 for the same period in 2015. Gross profits were $1,421,871 for the nine months ended September 30, compared with $53,986 for the same period in 2015. The reason for this dramatic increase was the acquisition of Dallas-based Progressive Water Treatment.Last month, Progressive Water Treatment offered mobile water purification trailers with support personnel for immediate delivery to users affected by Hurricane Matthew. Progressive's immediate trailer-based unit capacities range from 60 to 225 gallons per minute, or up to 325,000 gallons per day. Progressive Water Treatment President Marc Stevens said:

"With deployments across the region, our mobile equipment has demonstrated its ability to return contaminated water to drinkable state, bringing much-needed relief to communities impacted by extreme weather events. We are ready to move quickly into areas impacted by Hurricane Matthew, much as we did after Katrina."

In September, Progressive Water Treatment modernized and expanded a large Northeast Ohio power plant's boiler feedwater treatment system, improving economy, and doubling capacity to 800 gallons per minute. This was the third large power plant project that PWT has designed and built in 2016, bringing the total of such orders this year to approximately $3.5 million. As before, PWT upgraded the power plant to a modern ultrafiltration system, which saves money and improves the quality of the feed stream.While improving its core business has helped, it hasn't been able to move the needle on OriginClear's stock price. What got OCLN moving was an update from CEO Riggs Eckelberry on President-elect Trump's position on water. On Trump's website, he says:

Make clean water a high priority. Develop a long-term water infrastructure plan with city, state and federal leaders to upgrade aging water systems. Triple funding for state revolving loan fund programs to help states and local governments upgrade critical drinking water and wastewater infrastructure.

Currently trading with a market cap of $4 million, OCLN is looking to capitalize on an upcoming Trump administration. How the company will go about this remains unclear. The biggest problem going forward for OCLN is its crushing debt load. In the quarter ending September 30, OCLN reported $15.4 million in short and long term debt compared to just $2.2 million in total assets. OCLN also reported cumulative losses of $64.8 million over the course of its operating history. While Progressive Water Treatment has boosted the company's top and bottom lines, it will need to embark on some financial engineering to reduce its debt load. This will most likely involve dilution. However, if the company can keep delivering strong revenue growth like it has so far this year, it will more than make up for any dilution. We will be updating our subscribers as soon as we know more. For the latest updates on OCLN, sign up below!Disclosure: We have no position in OCLN and have not been compensated for this article.