Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?"We see flowing profits from companies in the water sector involved with pipes, pumps, regulators and other equipment," notes Neil George.
In his industry-leading Personal Finance newsletter, the advisor offers a fascinating overview of three companies that help "utilities and other industries provide quality water service."
"Aging pipes are one of the most pressing challenges in the US and beyond. Studies show that in some municipalities, loss from leaky pipes accounts for as much as 10% of water consumption.
"Ameron International (NYSE: AMN) is a pipe manufacturer with operations on every continent. Earnings per share don't show smooth-line growth on a quarterly basis given the cyclical nature of construction. But it does show solid, year-over-year growth.
"There's some price volatility as investors are jarred with increasingly pessimistic domestic construction outlooks, but overseas earnings will continue to bolster the balance sheet.
"Watts Water Technologies (NYSE: WTS) manufactures pumps, valves and controls for a broad array of both consumer and industrial applications.
"Used to control the pressure and direction of water moving through piping and other systems, as well the volume, you'll find Watts products installed in homes and municipal water systems, as well as factories and commercial buildings.
"The multiple applications for Watts' products also make the company resistant to the economic downturn, given the broad exposure to both consumer and governmental markets. It also positions the company to benefit from any future rebound in residential construction.
"Corrosion and failure are rampant problems in the global water delivery system, giving rise to enormous opportunities for companies able to combat contamination.
"Nalco Holdings (NYSE: NLC) offers a line of chemical treatments and related service products that keep older water systems safe and operating.
"Revenues are climbing at double-digit rates, in its water business as well as its energy-related and chemical industry businesses."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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