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VE has really dropped in the past couple years, I think its a long term play. Have also owned MWA and PHO. They don't move fast but I think they are values now.
Water is the world's most precious natural resource. Without it, life would not exist. Yet it is becoming more and more polluted while our demand for it increases.
I'd say they are smart long term plays. But still subject to the vagaries of market manipulation (I think we're in the middle of a Wiemar Rally).
I agree, eskercurve, but finding a good proxie for an investment in water is not easy. Water is everywhere so we need to focus upon companies that have a good or service that facilitates large-scale procural and treatment. Flowserve (FLS) was recommended on Fast Money months back when it was around $30; now it is well over $100. They make flow meters that are used in water distribution systems. Tetra Tech (TTEK) is involved in setting up water treatment plants.
I haven't dipped my toe in the stream of water investing yet (pun intended), but am always on the lookout. I am still building positions in the food industry, which has lagged the general market the past several months (think BG and ADM).
ha, was looking at the exact same company. None of the other companies can beat it. VE does everything practically. Plus its remained profitable for a very long time and I see no change in that. I am just waiting for it to take a hit before I buy.
Was going to pick it up at 26 but greece signed the austerity and it rallied to 28 =/
VE = Veolia Environnement Ve SA (South Africa?)
Friday close $28.74 (ADR)
Div Yield 6.04% (only an annual payment)
P/E and Forward P/E: 13.4/16.3 (If forward P/E is higher, it means a projected drop in earnings....)
Beta 1.78 (Enjoy the ride!)
P/Sales = 0.29
P/Book = 1.29
Div Payout Ratio = 68%
P/EG = 1.03
MWA = Mueller Water Products Inc
Friday close $3.97
Beta = 2.42 (Wow! I am sea-sick already...)
DY = 1.76% (quarterly)
Negative earnings so P/E is N/A
Revenue is dropping ~5% per year for the past five years.
Cash flow very small.
P/Sales = 0.46
P/Cash Flow = 15.27
Not a pretty picture.
PHO = Powershares Water Resource Portfolio
Friday close $19.65
Distribution yield 0.51%
Small-cap, blend
Net expense ratio = 0.64%
Average historical risk, Below average historical return
Top ten holdings
AECOM Technology Corporation
VMI Valmont Industries, Inc.
VE Veolia Environnement ADR
TTEK Tetra Tech, Inc.
URS URS Corporation
DHR Danaher Corporation
LNN Lindsay Manufacturing Company
ITRI Itron Inc.
BMI Badger Meter, Inc.
CCC Calgon Carbon Corporation
None of these would qualify for my money at this time.
Its a french company actually. Its been a dominate player in the water industry for quite some time and is considered the, "must own" stock when investing in water but it also has operations in other sectors like waste management, energy and transportation.
Its a long term play. Will have consistent growth over the years.
Quote:
None of these would qualify for my money at this time.
VE = Veolia Environnement Ve SA (South Africa?)
Friday close $28.74 (ADR)
Div Yield 6.04% (only an annual payment)
P/E and Forward P/E: 13.4/16.3 (If forward P/E is higher, it means a projected drop in earnings....)
Beta 1.78 (Enjoy the ride!)
P/Sales = 0.29
P/Book = 1.29
Div Payout Ratio = 68%
P/EG = 1.03
MWA = Mueller Water Products Inc
Friday close $3.97
Beta = 2.42 (Wow! I am sea-sick already...)
DY = 1.76% (quarterly)
Negative earnings so P/E is N/A
Revenue is dropping ~5% per year for the past five years.
Cash flow very small.
P/Sales = 0.46
P/Cash Flow = 15.27
Not a pretty picture.
PHO = Powershares Water Resource Portfolio
Friday close $19.65
Distribution yield 0.51%
Small-cap, blend
Net expense ratio = 0.64%
Average historical risk, Below average historical return
Top ten holdings
AECOM Technology Corporation
VMI Valmont Industries, Inc.
VE Veolia Environnement ADR
TTEK Tetra Tech, Inc.
URS URS Corporation
DHR Danaher Corporation
LNN Lindsay Manufacturing Company
ITRI Itron Inc.
BMI Badger Meter, Inc.
CCC Calgon Carbon Corporation
None of these would qualify for my money at this time.
Your right, none are really hot or even warm for that matter. I've lost compared to the market. Trying to convince myself there is money to be made.... My idea was 'Who makes desalination plants?'
Your right, none are really hot or even warm for that matter. I've lost compared to the market. Trying to convince myself there is money to be made....
I like water but finding a "good" investment is incredibly hard... most of them seem pretty crappy...
Yes, strangely enough "water companies" don't seem to have the ability to build a large enough moat. (Pun intended.)
The company that produces a cheap, safe, and low-energy way of changing salt water to fresh water will be the company that is worth investing in. Water is, after all, still about the cheapest commodity out there.
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My idea was 'Who makes desalination plants?'
