Is Cadiz Poised To ‘Triple Up’?

Institutional investors are piling into Cadiz, Inc. (NASDAQ: CDZI) — and it’s not particularly hard to see why.

Barclays PLC upped its CDZI holdings by more than 300% in the third quarter. It wasn’t alone. Over the same period, B. Riley Financial, Equitec Proprietary Markets, HCR Wealth Advisors, and more grew their stakes by double- to triple-digit percentages.

Why? Well, it’s impossible to say for sure, but several signs point to a potential breakout on the horizon for Cadiz — and it seems some of the world’s biggest investors are heeding them.

Chief among the major developments Cadiz has coming down the pipeline is, well, a pipeline.

Specifically, Cadiz is building the Southwest's largest water pipeline. It aims to leverage its 45,000 acres of land in California and 2.5 million acre-feet of water supply to increase clean water access where it is needed the most.

The project grabbed headlines again last November when Cadiz purchased 180 miles of steel pipe from the failed Keystone XL project. And if you’re concerned this project could go the way of that one, it doesn’t seem likely. Native Americans aren’t protesting Cadiz — they’re investing in it.

The Lytton Band of Pomo Indians recently signed a Letter of Intent to invest up to $50 million in the Cadiz’s groundwater banking project in the Mojave Desert, which would be the first-ever major investment by a Native American Tribe in large-scale water infrastructure off tribal lands.

With the groundbreaking project due to break ground before too long, it’s no wonder institutional investors are so bullish. How bullish, you ask? B. Riley set its price target at $15, implying an upside of — wait for it — 215%!

A “triple-up” in share price could be ready to drop into investors’ laps, so it makes sense why they’re crowding into the ground floor.

There’s still room for more — for now. But if you wait until the water starts flowing, you could miss out on a substantial amount of upside.

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