Five years ago Jeff Saut suggested that the next war will be fought over water, not oil. As the ongoing contamination of the ocean in the Gulf of Mexico proves, water is a valuable and fragile resource. From an investors point of view, water is a solid growth area with high barriers of entry.
Itron (ITRI) is fast becoming a leader in next-generation smart grid metering of water, electricity, and any other kinds of utilities. A very similar company is Badger Meter (BMI). A large cap name worthy of attention in Europe is French public utility Veolia Environmental (VE). This is a well priced international company.
Calgon Carbon (NYSE: CCC) is a maker of water and air purifying systems, it has two main lines of growth: activated carbon and ultra violet light equipment, which are used to treat water. Both of these business lines are supported by government regulation, specifically mandates from the Environmental Protection Agency.
Calgon’s growth should continue through 2010 and 2011. They will have significant pricing power, they are not really depending on economic growth or funding and the valuations are still relatively low. The stock has traded between $10.93 and $18.35 during the past year.
On June 2, 2010, Calgon Carbon Corp., announced a contract from the U.S. Army for air filtration machinery valued at least $1.9 million. The contract, is worth up to $5.1 million over three years, and covers general-purpose air filtration machinery. Calgon shares rose 33 cents, or 2.3 percent, to $14.43 during afternoon trading.
Water related ETFs worth looking at include the Powershares Water Resources (PHO) and the Claymore S&P Global Water Index ETF (CGW).
Although water should prove to be a great investment, as with many big-picture investments, timing them is always the hardest part. Averting a war over water is a matter of stewardship, efficiency and forward looking companies that provide technologies to manage the coming water crisis.
__________________________________
Related Posts
First International Water Hour
The Best Eco-Inventions of 2009: Water
Sustainable Water Purification Technology
Sustainable Water Purification Technology Unveiled During G20
Sustainable Stock Offers More than Extraordinary Returns
Sustainability is an Unstoppable Megatrend
The Green Market’s 5 Sustainable Stock Portfolios
Sustainable Stock
Sustainable Investing and Long Term Thinking
Solar Stock Review and Future Prospects
Wind Stock Review and Future Prospects
Geothermal Stock Review and Future Prospects
Energy Efficient (Smart) Grid Stock Review and Future Prospects
Energy Efficient Lighting Stock Review and Future Prospects
Eco-Investing
Codexis IPO Bodes Well for Cleantech
Investing for a Sustainable Recovery
The Effects of Global Warming
Lithium is the Right Stock at the Right Time for the Right Reasons
Lithium is the Next Big Investment Opportunity
Lithium Power Benefits Investors and the Environment
Mobile Electronics are Driving Demand for Lithium
Electric Vehicles Will Drive Demand for Lithium
Beneficiaries of Chinese Government Investment in EVs
Renewable Energy Storage
Discover more from Change Oracle
Subscribe to get the latest posts sent to your email.
