Editor's Note: This story was updated on 9/15 to reflect the correct cash burn rate.
Shares of water company Cadiz (CDZI -1.90%) were down by as much as 17.7% Monday as a sell-off in the company's normally stable stock continued. Shares of the infrastructure stock closed the session off by 8.5%.
The biggest news of the day was that management said there was no news. Cadiz's shares started falling suddenly last Monday. Today, management issued a statement in response to the slide that said in part, "The Company reports that there have been no new material developments nor pending announcements concerning its business operations contributing to market activity."
Management went on to say that it reaffirmed its 2021 outlook, which really just said that Cadiz will need additional funds to grow the business over the long term. In the first six months of 2021, the company's operations burned through $6.0 million, a rate of cash consumption that doesn't look like it will end anytime soon.
Water infrastructure should be a great business to be in right now, but Cadiz doesn't have the fundamentals to back it up. It's still trying to complete the Cadiz Water Project, which could supply a huge volume of water to Southern California, but the timeline remains hazy and it's unclear when the company would generate a return on the project. Lately, the market's sentiment has moved against the company, and without fundamentals to back it up, this isn't a stock I'll be jumping into soon.