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"Water is the sleeper investment of the decade," says Jim Powell. "Although the world is focused on energy, clean water is in far shorter supply in many regions. That's even true in many parts of the U.S."
The editor of Growth Stock Alert suggests, "A great deal of money will be made by today's earlybird investors who buy strategic water stocks." Here are his favorites in the sector.
"Unlike oil, there is no substitute for water. Some investors mistakenly think that water is a low value commodity that's not likely to deliver good profits. What the critics fail to consider is the equipment needed to
obtain, purify, transport and recycle water is very expensive.
"Calgon Carbon (NYSE: CCC) is my first choice in a water stock. The company is the world's largest supplier of
granulated activated carbon, the principal purification agent for water. The company also supplies complete treatment systems for municipalities and private organizations.
"The company has 16 operating centers and 23 sales and service offices around the world. A few years ago
, the company expanded its purification business to include industrial liquids and gasses. Rising concerns about greenhouse emissions and other pollutants are giving Calgon Carbon another boost.
"I also recommend ITT Corporation (NYSE: ITT), the world's leading supplier of systems that move and purify
water. The company's treatment equipment is sold throughout the world under the Sanitaire, Aquious and WEDECO brands.
"The company also supplies mixers, heat exchangers, and related products for handling water and other fluids.
Taken together, ITT's pumping and purification division is responsible for approximately 39% of sales and 46% of
operating income.
"ITT's defense electronics business is also substantial. The company is best known for its state-of-the-art night vision equipment used by all the armed forces. The company also supplies the latest air traffic control systems
used by military and civilian agencies.
"On August 31, the company received a $207 million contract from the FAA to deploy a breakthrough system positioning aircraft using the GPS system rather than radar. Ultimately, I think the new technology will
be worth many times the initial contract.
"For a more diversified water investment I recommend PowerShares Water Resources (ASE: PHO), which tracks the Palisades Water Index. The Index contains every significant company involved in the global water supply and purification industry. I think the long term outlook for this investment is excellent."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
2-08-2008 @ 2:01PM
NATSLEE said...
I WHOLHEARTEDLY AGREE WITH YOUR ARTICLE; UNFORTUNATELY, U.S. INVESTORS VIEW THIS AS HYPERBOLE BY THE MEDIA AND SHOW INVESTOR APATHY FOR GROWTH POTENTIAL. I BELIEVE A BETTER OPPORTUNIY IS A GLOBAL WATER PLAY SUCH AS CLAYMORE'S GLOBAL WATER ETF (CGW)WHICH I OWN AS A LONG TERM PLAY BUT SO FAR WITH LIMITED SUCCESS. BUT I INTEND TO STAY AND BUY MORE BECAUSE , LIKE LAND, IT IS A LIMITED RESOURCE WHICH THE WORLD NEEDS...EXCUSE THE CAPS--IT'S EASIER TO TYPE.
2-10-2008 @ 12:53PM
NATSLEE said...
i agree with your article; but most U.S.investors see this as media hyperbole and not reality in the short term and thus no interest. Ii believe the better play is global needs like in the emerging markets, China, etc. My bet is on Claymore's global water ETF(CGW) which has the best of the world in it when I looked at them. I'm going long term with CGW; but my success so far is marginal. but it's a long- termer for me like you said it should be. regards. Stan