Investing in Water

Our bodies are 70% water. Without it, we die. Worldwide, there is crisis of monumental proportions that is facing us. The earth is covered with 97.5% water. 70% in our glaciers is frozen. Only 2.5% is fresh and just 1% is accessible. These numbers show the shocking condition of our water supply. At this writing, the world has 17% more demand than the supply available and poses a host of questions. Among them are:

How Critical is the Problem?
Here are some facts that are crying out for solutions:
1 billion people do not have access to clean water.
2/3 of China has shortages, with 449 cities critical.
½ of the rivers and lakes are polluted.
Mexico City is sinking 1 foot per year. It is sitting on an underground lake. The withdrawals are causing the problem.
New Delhi, India will run out by 2015.
40% of the world’s population has no clean water.
Mount Kilimanjaro lost 75% of its ice cap and is due to lose it all by 2020.
With the world population expected to grow 2.5 billion by 2025, demand for water will exceed supply by 56%.

Who uses the Most Water?
In the US, we use an average of 232 gallons per day in household use for crops, bathing and drinking.
70% of our water usage goes for agriculture.
One fracking well uses 5 million gallons. We have 82,000 wells in operation.

Survival depends on repair of infrastructure, desalination and new technologies for purification, water instrumentation and water saving programs. The water industry is now a $500 billion enterprise and expected to grow another $20 billion by 2025. For investors, here are the leading water stocks:
Xylem (XYL). Recent Price $34.52. 52 Week High/Low is $34.92/$23.61EPS is1.59. PE Ratio is 21.57. Dividend is .47 (1.36%) Market Cap is $6.40 B
The company produces water technology solutions, waste water treatment solutions and industrial pumps. 2/3 of its revenue is from outside the US.
2. Danaher Corp. (DHR) Recent Price $74.50. 52 Week High/ Low is $74.99
$52.05. EPS is 2.22 PE Ratio is 22.16 Dividend Is $.10 (yield .14%)
Market Cap is $51.79 B
The Company manufacturers water instrumentation and disinfections systems.

3. Northwest Pipe Co. (NWPX) Recent Price $36.99 52 Week High/Low
Is $38.76/$20.28. EPS is 2.18 PE Ratio is 16.59 Market Cap $349.56M
The company makes large scale pipes for drinking water systems.

4. Veolia Environment (VE) Recent Price $16.65 52 Week High/Low
Is $18.80/$10.14 Dividend $.77 (Yield 4.17%) Market Cap $9.14B
The company builds sanitation and water savings solutions.

5. Valmont Industries (VMI) Recent Price $143.70 52 Week High/Low
Is $164,93/$129.00 EPS is 10.90. PE Ratio is 13.15 Dividend is
$1.00 (yield .70%) Market Cap is $3.85 B
The company manufacturers mechanized irrigation systems, towers for wind energy and cell phones. Growth has been 18% a year for the past 5 years.

Water ETF include:
1. Power Shares Global Water Portfolio (PIO) Water treatment and emerging markets.
2. Power Shares Water Resources (PHO) based on the Nasdaq OMX-US Water Index.
3. Guggenheim S & P Global Water Index (CGW) Tracks S & P’s Global Water Index.
4. First Trust ISE Water Index Fund (FIW) Index of 36 companies that have a portion of their business from potable and waste water industries.

The above discussion is neither a recommendation to buy nor to sell the these securities. You must always do your own diligent research.

8 Responses to Investing in Water

  1. [...] @ Investing Money writes Investing in Water – We need water to live, our bodies are 70% water. Without water we die. What else is water [...]

  2. [...] Money thinks Investing in Water  is [...]

  3. [...] @ Investing Money writes Investing in Water – We need water to live, our bodies are 70% water. Without water we die. What else is water [...]

  4. [...] @ Investing Money writes Investing in Water – We need water to live, our bodies are 70% water. Without water we die. What else is water [...]

  5. [...] @ Investing Money writes Investing in Water – We need water to live, our bodies are 70% water. Without water we die. What else is water [...]

  6. [...] @ Investing Money writes Investing in Water – We need water to live, our bodies are 70% water. Without water we die. What else is water [...]

  7. [...] @ Investing Money writes Investing in Water – We need water to live, our bodies are 70% water. Without water we die. What else is water [...]

  8. [...] @ Investing Money writes Investing in Water – We need water to live, our bodies are 70% water. Without water we die. What else is water [...]

Leave a Reply

*