"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.

MOST NOTEWORTHY: Websense Inc (WBSN), Dow Jones & Co, Inc (DJ), Krispy Kreme Doughnuts (KKD), US Airways Group, Inc (LLC), Starwood Hotels & Resorts Worldwide, Inc (HOT) were today's more noteworthy downgrades:

• Jefferies downgraded Websense Inc (NASDAQ: WBSN) to Underperform from Hold with a $20 target to reflect slowing growth in the URL market, near-term business disruption from the pending SRF deal and summer software seasonality.

• Dow Jones & Co (NYSE: DJ) was cut to Hold from Buy at Gabelli and to Market Perform from Outperform at Wachovia.

• Krispy Kreme (NYSE: KKD) was downgraded to Neutral from Overweight at Prudential.

• Merrill Lynch downgraded US Airways Group (NYSE: LCC) to Neutral from Buy.

• Goldman downgraded Starwood Hotels (NYSE: HOT) to Neutral from Buy to reflect the weaker-than-expected quarterly fundamentals reported by the major hotel companies. The firm believes investors should stay away from the lodging sector...

OTHER DOWNGRADES:

• JP Morgan cut Federated Investors, Inc (NYSE: FII) to Underweight from Neutral on valuation.

• Genesco Inc (NYSE: GCO) was downgraded to Market Perform from Outperform at Piper Jaffray.

• UBS cut Liz Claiborne (NYSE: LIZ) to Neutral from Buy.

• Tibco Software Inc (NASDAQ: TIBX) was cut to Hold from Buy at Jefferies.

• Baird downgraded Watts Water Technologies, Inc (NYSE: WTS) to Underperform from Neutral.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: MasterCard Inc (MA), Domino's Pizza, Inc (DPZ), STEC, Inc (STEC) were some of today's more notable initiations:

• Suntrust initiated MasterCard Inc (NYSE: MA) with a Buy rating and $130 target, believing the company is the best positioned to benefit from the secular shift from cash to e-payments at the point of sales.

• Domino's Pizza Inc (NYSE: DPZ) was initiated with an Outperform rating and $38 target at Friedman Billings.

• AG Edwards initiated STEC Inc (NASDAQ: STEC) with a Buy rating and $12 target. The firm feels shares are undervalued and that the company's growth profile and profitability should dramatically improve post-consumer business sale and revenue recognition change.

OTHER INITIATIONS:

• California Pizza Kitchen (NASDAQ: CPKI) was initiated with a Market Perform rating and $35 target at Friedman Billings.

• Stanford believes Watts Water Technologies, Inc (NYSE: WTS) is one of the more compelling names in the water infrastructure space and initiated shares with a Buy rating and $42 target.

• Morgan Keegan believes Horizon Lines Inc's (NYSE: HRZ) earnings potential has yet to be realized and initiated shares with an Outperform rating.

• Lazard initiated several solar power companies with Buy ratings: SunPower Corp (NASDAQ: SPWR), First Solar, Inc (NASDAQ: FSLR), Evergreen Solar, Inc (NASDAQ: ESLR) and Energy Conversion Devices, Inc (NASDAQ: ENER).

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Tonight on "MAD MONEY," host Jim Cramer discussed a stock that was brought up in yesterday's LIGHTNING ROUND -- Watts Water Technologies (NYSE: WTS), a company which sells valves used in plumbing and heating. Cramer yesterday said he was going to explore it further.

Cramer said today that the stock has a theme. He said the theme can work for years and that is what secular is about. He said the company showed great earnings, but the shortage of water and the need for clean water isn't going away. He said Watts Water is a pure-play on this, and it is better than his previous recommendations, Pentair (PNR) and Aqua America (WTR). He also said the water companies in Europe are played out.

In contrast, Cramer says Watts Water is a serious buy. He wishes he spotted it sooner, but it is still lower than its 52-week high. He said it trades at 14-times next year's earnings.

Cramer said it is best of breed and cheapest among its peers. He notes the company bought its way into China recently too. He thinks it can beat estimates and has pricing power. He doesn't mind that 15% of the business comes from new housing construction.

Cramer said there is also an army of bears in the stock. But he believes it is a Triple Buy.