Consolidated Water Company (CWCO) stock price is now 32.8% above its expected price thanks to the bump in its stock price in mid-March following an SEC 8k filing stating that it has found an equity partner for a 100,000-AF desalination plant at Rosarito Beach.  It also stated that it anticipates entering into a definitive agreement with the State of Baja by February 2016.  With the reversal of a previously declining trend, Consolidated Water’s price now stands 27.2% above its level 52 weeks ago.  The stock price is running 7% above its 10-week exponential moving average.

CWCO stock had been under-performing relative to the returns forecasted by the Capital Asset Pricing Model by an annual rate of 4.1% from January 2006 through December 2012.  The company’s stock performed strongly through fall 2013 due to a run of three quarters where earnings significantly outpaced market expectations.  The stock peaked in mid-October 2013 when 3^rd quarter earnings fell significantly and has been on a declining trend.  The company entered into a Memorandum of Understanding in November 2012 with the Otay Water District to sell at least 20 million gallons per day and up to 40 million gallons per day from a proposed seawater reverse osmosis desalination plant with a capacity of 100 million gallons per day located in northern Baja.