"Investors have given up on the water industry -- the sector has fallen 60% -- but the best firms have hardly missed a beat," says utility sector specialist Roger Conrad.

In Personal Finance, the advisor reviews the outlook for the sector and two of his favorite stocks -- American Water Works (NYSE: AWK) and Aqua America (NYSE: WTR).

"The EPA stimates the US will have to spend $335 billion over the next decade to keep the taps turned on, given aging infrastructure and supply degradation.

Continue reading Utility expert taps into water stocks

Utility expert taps into water stocks originally appeared on BloggingStocks on Tue, 30 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

"The worst crisis of all time, in my view, is the critical global shortage of fresh water," says " Larry Edelson. In Money & Markets, the resource expert offers four water sector plays.

"The world's water crisis is now getting worse by the day. And the global financial and credit crisis is merely one reason why. Another is the ongoing modernization of major parts of the world, which is increasing demand for water, while at the same time polluting it.

"Yet another is major droughts around the world, including in our own back yard, where 60% of the U.S. is officially experiencing a drought.

"New technologies and techniques for better water supply management and improved conservation on the demand side could potentially avert a worldwide disaster. And as a long-term investment, water is one of my favorites. For both its tremendous social cause as well as its profit potential.

Continue reading Four favorite water stocks

Four favorite water stocks originally appeared on BloggingStocks on Tue, 31 Mar 2009 14:30:00 EST. Please see our terms for use of feeds.

"Warren Buffett's Berkshire Hathaway revealed a new position in Nalco Holding (NYSE: NLC); it's my favorite pure play on water filtration," says Chris Mayer in Daily Wealth.

"With a $1.6 billion market cap, Nalco is a small-cap stock, but it's actually one of the world's largest water-treatment companies. Customers use Nalco's products and services to prevent corrosion, contamination, and the buildup of harmful deposits.

"Buffett picked up 8.7 million shares. That makes Berkshire the second-largest shareholder in the company, with a little more than 6% of the shares.It's easy to see what Buffett likes.

Continue reading Naclo (NLC): Buffett's bet on water

Naclo (NLC): Buffett's bet on water originally appeared on BloggingStocks on Wed, 04 Mar 2009 10:40:00 EST. Please see our terms for use of feeds.

"It's no secret that the world is facing a severe water shortage; many experts, believe the next major war will be fought over water, not oil," says Marc Lichtenfeld.

The senior equity analyst for the top-notch growth stock advisory, Xcelerated Profits Report explains, "Desalination is likely the only way the world's water needs will be met. And one company that will benefit is Energy Recovery (NASDAQ: ERII).

"Just how severe is the shortage? Demand for fresh water will exceed supply by 50% in 2025, with one-third of the Earth's population living in countries with water scarcity. The bottom line is that if we plan to feed and provide water for everyone, we're going to have to find a way to use more water more efficiently.

Continue reading Energy Recovery (ERII): Desalinization amd water infrastructure

Energy Recovery (ERII): Desalinization amd water infrastructure originally appeared on BloggingStocks on Wed, 25 Feb 2009 12:00:00 EST. Please see our terms for use of feeds.

"In a few years we'll be staring at new highs in the prices of many natural resources," says Larry Edelson, a specialist in resource-related stocks. In Real Wealth, he looks at two exchange-traded funds focused on food and water.

"Mind you, the U.S. and global economies will not get back to the growth levels we've recently seen, not anytime soon.

"But they don't have to for natural resource prices to soar again. The chief reason they will climb again: Massive, worldwide currency devaluations, especially in the U.S. dollar.

"Moreover, natural resources will get a huge boost from the massive infrastructure spending that is now commencing around the world. I expect two key sectors in particular to get a big boost, almost immediately - agriculture and water.

Continue reading Water and agriculture: ETFs for a resources rebound

Water and agriculture: ETFs for a resources rebound originally appeared on BloggingStocks on Thu, 12 Feb 2009 12:41:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

Roger Conrad, the advisory industry's leading authority on the utility sector, looks to American Water Works (NYSE: AWK) as his favorite investment idea for the coming year.

In The Utility Forecaster, he notes, "We now have the opportunity to buy America's premier water utility franchise at a discount to book value." Here, he explains the situation and his bullish outlook.

"In early 2003, Germany's RWE paid a hefty premium for American Water Works. Five years later in April 2008, RWE's new management took a $1 billion write-off to unload the company as an independent company in the U.S.

"As a result, we now have the opportunity to re-enter America's premier water utility franchise at a discount to book value.

"American Water has written off hundreds of millions in good will and overhauled oversight practices that had gone soft under RWE. But with third-quarter earnings surging 11% on a 6.2% revenue jump -- and more the same expected into 2009 -- its fortunes are building again.

Continue reading Top Stock Picks '09: American Water Works (AWK)

Top Stock Picks '09: American Water Works (AWK) originally appeared on BloggingStocks on Tue, 06 Jan 2009 08:00:00 EST. Please see our terms for use of feeds.

This post is part of a special report, A Dozen Ways to Play an Obama Building Boom.

"Stocks in the water sector could soon flood their shareholders with a deluge of profits," says value investor Nathan Slaughter. In his Half -Priced Stocks, he explains, "Even in the 21st century, UNICEF reports that a staggering 1.1 billion in emerging markets still lack access to safe drinking water.

"And here in the U.S., the EPA has said we need to spend $275 billion to replace aging facilities -- including 800,000 miles of leaky, corroded pipeline that haven't been upgraded since the 1800's in some places.

"We see an incredible opportunities for the companies trying to combat the problem, particularly those involved with water distribution pipes, treatment facilities, purification technologies and other critical infrastructure.

"My top play in the sector is Veolia Environnement (NYSE: VE), a global juggernaut with $45 billion in annual revenues, operating on every continent.

"From humble origins supplying water to Parisians over 150 years ago, Veolia has grown to become the world's largest water utility. Today, it provides water and sewerage services to 130 million people in nearly 60 countries worldwide.

Continue reading Veolia (NYSE: VE): Infrastructure spending in water sector

Veolia (NYSE: VE): Infrastructure spending in water sector originally appeared on BloggingStocks on Sun, 21 Dec 2008 10:00:00 EST. Please see our terms for use of feeds.

"During times such as these, I like to focus on big companies with clean balance sheets that pay decent dividends," says Glenn Rogers.

Here, the contributing editor to Internet Wealth Builder reviews his current stock holdings for a trio of global favorites offering upside potential while still allowing investors to "sleep well at night."

"Diageo Plc (NYSE: DEO) is well down from my original recommended price but compared to the overall market they have performed respectably.

"Meanwhile, the company recently issued a statement confirming its previous guidance of profit growth of between 7% and 9% in 2008.

"The company reported that organic net sales grew 6% in the three months to Sept. 30 and that there has been no material change in the financial position of the group during the period. Buy, with a target of $90.

"I have owned Knightsbridge Tankers (NASDAQ: VLCCF) longer than any other in my portfolio and it has never failed to pay a hefty dividend. The stock is currently trading at $17.40, thus yielding an incredible 17.2% based on a quarterly dividend of 75c a share.

Continue reading 'Sleep well' stocks: A global dividend trio

'Sleep well' stocks: A global dividend trio originally appeared on BloggingStocks on Thu, 20 Nov 2008 14:00:00 EST. Please see our terms for use of feeds.

"Mountains of money are about to be spent on the water industry," says exchange-traded fund expert Paul Tracy.

In his The ETF Authority, the advisor adds, "All things considered, my favorite way to invest in the water sector is through the PowerShares Global Water Portfolio (AMEX: PIO)."

"PIO tracks a benchmark that has delivered the strongest gains in the group by a comfortable margin.

"For the last five years, through the end of last quarter, the Palisades Global Water Index has posted annualized returns of 24.9%, for a cumulative gain of 204% -- versus just 44% for the S&P 500. In other words, a $10,000 investment made in 2003 would be worth more than $30,000 today.

"Yet, the portfolio is still the most attractively valued -- the average holding is trading at just 2.5 times book value and 13 times earnings.

"Shareholders in the ETF will have a stake in companies like Veolia Environment, the world's leading provider of water and wastewater treatment.

"Other top holdings include Kurita, which supplies ultra-pure water for semiconductor manufacturing and makes reverse osmosis seawater desalination systems for remote islands; and Hyflux, a leading maker of water recycling technology used in Singapore and China.

Continue reading Global gains in water sector

Global gains in water sector originally appeared on BloggingStocks on Thu, 23 Oct 2008 10:30:00 EST. Please see our terms for use of feeds.

"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.

Continue reading Profits in pipes: Infrastructure gains

Profits in pipes: Infrastructure gains originally appeared on BloggingStocks on Fri, 19 Sep 2008 12:45:00 EST. Please see our terms for use of feeds.

"Wealth building is about buying quality on the cheap; and you're not going to find the best water industry stocks at better prices than they sell for now," says utility sector specialist Roger Conrad.

In his The Utility Forecaster, the advisor reviews the three water stocks that earn a place among the core holdings in his growth portfolio: Aqua America (NYSE: WTR), Consolidated Water (NASDAQ: CWCO) and Southwest Water (NASDAQ: SWWC).

"All three of these water stocks posted disappointing first quarter earnings for very different reasons. However, all remain tapped into long-run, wealth-building opportunities.

"Aqua's first quarter results were by no means a disaster. But they lagged both last year's total and Wall Street estimates.

"Management blamed the slowing economy's impact on housing starts in what had been fast-growing systems, rising bad debt, lower commercial sales, delays in fully digesting acquisitions in the South and longer-than-expected timetables needed to win rate increases.

Continue reading Tap into water utility stocks

Tap into water utility stocks originally appeared on BloggingStocks on Wed, 18 Jun 2008 14:03:00 EST. Please see our terms for use of feeds.

"What is one thing you can't live without?" asks Brandon Clay and Ron Rowland. "Take away that glass of cool, clean drinking water from your diet, then it's a matter of days before you dehydrate and die." ons

In All Star Investor, they explain, "Water is essential to our survival." And for investors, they add, "Powershares Water Resources Portfolio (ASE: PHO) is a perfect play on the global demand for water technology."

"The essential nature of water is the same for the 6.67 billion people on this planet. With Latin America and Asia entering the modern world at an unprecedented pace, water is becoming even scarcer.

"Improving diets and growing industry have pushed this diminishing resource further from the reach of many people. Yes, people are still drinking water, but at what cost?

"Water covers most of our planet. Still, less than 2% is fresh water. That makes water a limited resource. Consumption is growing with 6,000 cubic meters per inhabitant used every year. That's the equivalent of draining Lake Superior - the biggest lake in the world - twice. Since the water cycle is not replenishing growing demand, water sources are being depleted.

Continue reading Powershares Water (PHO): The one essential for life

Powershares Water (PHO): The one essential for life originally appeared on BloggingStocks on Tue, 17 Jun 2008 10:59:00 EST. Please see our terms for use of feeds.

"One essential commodity that is often overlooked by investors is water," says Gregory Dorsey, contributing editor to Stephen Leeb's Income Performance Letter.

He explains, "It's absolutely vital and is in growing demand for many reasons. And we've found an excellent way for income investors to ride this trend -- Paris-based Veolia Environnement (NYSE: VE). Here is his review.

"Veolia is not your typical utility, but it's still a utility that every income investor should consider. Veolia is the world leader in the management of water and wastewater services for local governments, industrial and service sector clients.

"It's also a world leader in the design, construction and operation of facilities for water and wastewater systems. With a focus on managing the complete water cycle from extraction to treatment to waste, Veolia stands ahead of its competitors.

"But although water is the chief attraction for us, Veolia generates steady revenue and income from other businesses as well.

"Its Veolia Environmental Services covers the entire solid waste cycle, including urban cleaning services, soil and site remediation, collection, sorting, transfer, treatment and recycling/recovery and is the world's largest waste management company.

Continue reading Water: An underrecognized commodity for Veolia (VE)

Water: An underrecognized commodity for Veolia (VE) originally appeared on BloggingStocks on Fri, 30 May 2008 10:30:00 EST. Please see our terms for use of feeds.

Two leading global experts have both turned bullish on France's Veolia Environnement (NYSE: VE). Vivian Lewis, in her Global Investing, notes, "Veolia is the way to play the 'water works square' on the monopoly board."

Nicholas Vardy, editor of Global Stock Investor suggests, "The smart money is betting that water may be the 'oil of the 21st century.' And Veolia is my number one way to profit from this global megatrend."

Vivan Lewis says, "We recommend buying French water and sewage conglomerate Veolia at current prices; the stock has been brought down by niggling Euro-concern about its levels of debt. The company is also being penalized for acquisitions.

"Veolia is the former Générale des Eaux, a municipal service firm. This history creates an image problem for VE which is seen as a utility.

"Our main reason for the buy, apart from price, is that this is a fast growing company with good earnings in a hot sector. In 2007, VE had revneues of euros 32.6 bn, up 14% on which its recurring net profit fost 22.5% to euros 933.2 mn. Earnings per share were euros 2.16, up 13.7%.

"Another reason for liking VE is that it is moving into China big-time, with waterworks in Tianshin and Shibai and environmental service in Juijiang. All in all, France still represents 44% of sales and the rest of Europe 36%. VE does about 10% of its business in the U.S. and the Chinese are part of the remainder.

Continue reading Veolia (VE): Global experts invest in water

Veolia (VE): Global experts invest in water originally appeared on BloggingStocks on Thu, 03 Apr 2008 13:42:00 EST. Please see our terms for use of feeds.

"We've been tracking the water industry for a while and it's been crystal clear that water is an area we want to dive into," says Toby Smith in his ChangeWave Investing. Here, he looks at a water-focused ETF.

"Water is often taken for granted, but that is changing. A combination of global economic growth and years of neglect are leading to a tidal wave of demand for water infrastructure and various technologies.

"It's forecasted that by 2025, almost two-thirds of the global population will live in countries where water will be a scarce commodity. Climate change could exacerbate the problem. Clearly, water issues cross all boundaries.

The water industry combines the best attributes of a good defensive strategy coupled with numerous 'offensive' plays. From a growth perspective, spending on water projects at all levels is on the upswing due to years of infrastructure neglect and under-investment.

"One great way for all investors to participate is by investing in an ETF with a water focus, such as PowerShares Water Resources (NYSE: PHO).

"The beauty of this water ETF is that it gives us exposure to each of the companies that were highest rated in our survey (comprising approximately one-third of the PHO holdings). PHO also has a well-balanced portfolio, with no single stock representing more that 4% of the total. IN our view, it's clear that the water industry will see above-average growth well into the future."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Toby Smith dives into water ETF originally appeared on BloggingStocks on Mon, 03 Mar 2008 14:33:00 EST. Please see our terms for use of feeds.

"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.

Continue reading Investing in water: A 'sleeper' sector

Investing in water: A 'sleeper' sector originally appeared on BloggingStocks on Fri, 08 Feb 2008 13:30:00 EST. Please see our terms for use of feeds.