American Water Works Co.
Water is one of the most valuable goods for upcoming generations, and discussions already evolve around the securitization of such commodity. Hence, possibilities for profit depend on government regulation and the age of the infrastructure. Let us look at Companhia de Saneamiento Basico (NYSE:SBS), United Utilities (NASDAQOTH:UUGRY), and American Water Works (NYSE:AWK) to see how those variables will limit or push future profits.
International events and government more »
It is not too controversial to say that water is a necessity for life. The United Nations’ Water for Life campaign says that almost one-fifth of the world’s population lives with actual water shortages and that the problem is getting worse even in the most developed of countries. Should water industry investments also be a necessity for your portfolio?
The first stop has to be the listed water utilities more »
You’ve heard the sound byte—water is a $1 trillion-dollar opportunity! Could water be the new gold?
Those looking to invest can either choose to invest in water ETFs or directly in stocks themselves. The companies fall into two broad types—Industrials who manufacture the equipment and technologies that go into water processing and distribution, and the Utilities who supply water to homes and businesses. Also, while emerging markets more »
Whether you know it or not, the world is facing a severe global water crisis. Expanding demand for water has placed the natural resource under severe strain. This high demand for water use is pulling a vacuum on the water industry, presenting an appealing long term investing opportunity. In this article, I'll outline the water crisis and three companies that are well-positioned to capitalize on this vacuum.
What's more »
Water infrastructure replacement is becoming a major issue throughout much of the developed world. Most pipes in America haven't been replaced since the 1930s, and in England they are often more than 200 years old. Regulatory concerns have left many of the companies that replace this infrastructure with a cap on the amount of money they can earn, however. These regulations are common due to the fact that it more »
Let’s take a journey back to just after World War II. Nearly all major countries in the world are in shambles, and the country which is perceived to be the strongest, the United States, produces nearly 40% of the world’s goods. Present day, this measure has shrunk to roughly 18%.
However, not all news is gloomy for the red, white, and blue. Right now as you read this more »
“Slower growth suggests that market volatility will rise,” says BlackRock's Chief Investment Strategist Russ Koesterich. Despite that, he suggests buying stocks. To avoid the inherent risk in stocks, look for low-beta necessity stocks like American Water Works (NYSE: AWK), Aqua America (NYSE: WTR), and American States Water (NYSE: AWR).
What's an investor to do?
The stock market is hovering around all time highs. Bond yields are hovering around more »
Water utilities' business models have allowed companies to maintain high growth under a very uncertain economic outlook. Also, relatively high regular distributions of dividends have made them particularly appealing to investors.
Opportunity in Brazil
Companhia de Saneamento Basico - SABESP (NYSE: SBS) - provides water and sewerage services, along with waste management, in the City of São Paulo.
Brazil is one of the largest developing economies in the world. Even if its more »
When most people think about valuable commodities, they tend to think about gold or oil. Most people neglect the world’s most important commodity -- fresh water.
Although water covers 70% of the Earth’s surface, only 1% of the world’s water is available for drinking. 97.5% of the planet’s water is seawater, and 70% of our available fresh water is frozen in glaciers. Meanwhile, climate change, water more »
Let's toast to an average 40% total annual return on three stocks with an average price volatility less than one-third the overall stock market's. Our toasting beverage is water -- the product of our winning stocks, American States Water (NYSE: AWR), Aqua America (NYSE: WTR), and American Water Works (NYSE: AWK).
First, a look at the returns the water utilities have been pouring out -- and then why water stocks more »
Although the average investor often turns a blind eye to hedge fund activity, paying attention to the best managers can be both wise and profitable. Here at Insider Monkey, we track the U.S.’s top 450 funds, and our research shows that, historically, their consensus small-cap picks have beaten the market handily (see just how much here).
Insiders are getting quite bullish about California Water Service Group (NYSE: CWT). On March 5, around 19 insiders of the company, including CEO and Chairman Peter Nelson and COO Martin Kropelnicki, bought 690,000 shares in total, with a total transaction value of more than $1.4 million. Since the middle of November 2012, California Water's stock has kept rising, from $17.30 per share to nearly $20.80 more »
Have you ever tried to live without water? It’s something that all humans need to survive and there are companies out there that make their money by delivering clean water to homes. Let’s take a look at some of these companies, we can start with the Brazilian firm, Companhia de Saneamento Basico (NYSE: SBS).
Companhia de Saneamento Basico
If you want to diversify your portfolio both out of more »
Commodities like oil and gold get a lot of press. Both are critical to the global economy and have been a source of investor profits for years. It’s easy to trade in either; you can directly invest via an ETF or buy shares in a company dedicated to production.
Water, however, is much more difficult to play. We tend not to think too much of it, as its access more »
A SWOT analysis is a look at a company’s strengths, weaknesses, opportunities, and threats, and is a tremendous way to gain a detailed and thorough perspective on a company and its future. As the 2012 year draws to a close, I would like to pinpoint on a leader in the water industry, American Water Works (NYSE: AWK).
- Predictable Business Model: American Water provides drinking water, wastewater, and other more »
The water utility industry is capital intensive. Regulatory agencies help companies cope with high costs by approving rate increases. In its 2011 annual report, American Water Works (NYSE: AWK), the largest investor-owned water and wastewater utility company in the US, states, “...based on certain legal and regulatory principles, utilities are entitled to recover, through rates charged to customers, prudent and reasonable operating costs as well as an opportunity to earn more »
“Water, water, everywhere,
Nor any drop to drink.”
The Rime of the Ancient Mariner
by Samuel Taylor Coleridge
Seeing the devastation from Hurricane Sandy brought to mind this famous verse, which in turn got me thinking about ways to invest in one of the essentials of human life-water. We drink it, bathe in it, grow & prepare food with it, and even use it for transportation and recreation. I am confident more »
With this summers drought the importance of a clean abundant water supply is clearly not something that can be taken for granted. Water utilities should be an option for any balanced portfolio. Think about this, water is a commodity that can not be owned. It is held in the public trust. So water utilities take a product they do not own and sell it to consumers at a nice profit more »
Editor's Note: The original article referred to Crown Holdings as a Pay-Per-View TV company. Crown Holdings is a packaging and canning manufacturer. This version has been corrected.
John Osterweis graduated from Bowdoin College with a B.A. in Philosophy, and then with an M.B.A. in Finance from Stanford University in 1969. After graduating from business school, John served as a senior analyst concentrating on forest products and more »
These days, we're all on the look out for a great value. Whether we're buying household goods, travel services, or large-ticket items we want to get the most for our money. So when it comes to the top CEOs, perhaps we should also consider them in terms of value. How much is their total compensation and how does that correspond to the leadership that they provide for the more »
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