Water

[FarmerGeorge]

Along with the Energy theme, Food, Infrastructure and perhaps hard Commodities I think a good sector for the next few years will be Water. I'm currently researching what's available in the US market and don't hold anything but thought a thread for discussion on this strategy might be appropriate.

My initial impression is that those companies which are capable in de-salinization and waste water transfer, and are operating in high growth markets (think BRIC) with relatively few political restraints will do well.

Any thoughts?

[Arbitrage]

You are not alone. This article about investing in water appeared in the NZ Herald last month.
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10470751

[miner]

Mentioned water years ago on this site and also the finding of water leaks in city's mains systems as there is big money in this for the company's that do it.
To give you an idea we found a leak in a 750mm mains in Sydney years ago that they said would have been pumping out about a million dollars worth of water a year,so gives you an idea what the contracts to find the leaks are worth,other city's around the world will be the same.

Water is the next oil.

Cheers
Miner

[shasta]

Along with the Energy theme, Food, Infrastructure and perhaps hard Commodities I think a good sector for the next few years will be Water. I'm currently researching what's available in the US market and don't hold anything but thought a thread for discussion on this strategy might be appropriate.

My initial impression is that those companies which are capable in de-salinization and waste water transfer, and are operating in high growth markets (think BRIC) with relatively few political restraints will do well.

Any thoughts?

Have been looking into Water "companies" of late myself, or those with a substantial interest in it.

I like TSE:ASX & in particular there recent acquistions in the US...

Have a look at them, not sure if listed elsewhere?

[axion]

I remember reading something a year or so ago about a former oil tycoon (or something of that nature) buying up water as he thought that was the future.

[FarmerGeorge]

Thanks for the suggestions, it's been a bit of a hot topic and I recently attended a talk by someone from Veolia discussing how great he thought things were going be for for water companies into the future. It's not as simple as it looks though as I'm sure there are plenty of political issues to sort through when it comes to supplying drinking water to citizens.

I looked at TSE and also at TSI which they recently spun off. Also been looking at the US listed water funds, many trading at growth company type P/E's.

I'm convinced it will be a good sector but the trick will be to find decent companies within it which aren't already selling for huge multiples.

[tobo]

I agree the sector has real possibilities.
Limited commodity and becoming more critical into the future. Impact of global warming on global food (shifting climates mucking up the balance of farms, wrong-footing farming businesses).
eg Australia, the lucky country with all it's minerals -
Struggling drought-ridden farms would be transformed with the addition of water...imagine farms spreading into that wasteland of desert further and further. All it needs is lots of energy to make lots of water.

I need to research more to see at what point this would become economic, and if there's any Ausi businesses working on this.
Irrigation water is seen to be cheap per litre now, but I think the balance may shift.

[FarmerGeorge]

The two big players seem to be Veolia and SUEZ, both originally French but also listed in the US. Both have excellent prospects in China also where it is relatively easy to get economies of scale providing water services, i.e. large and growing urban populations. Veolia even have some large projects in NZ, perhaps Aust as well. Also working on growth is GE with a number of water related acquisitions under their belt over the past decade or so.
Acquisition targets in the sector might be a good bet, also anyone who can produce/install/operate/maintain efficient desalination plants. Consensus seems to be if there was enough energy, water wouldn't be a problem as we could just start using the oceans. "Solve the energy problem = solve the water problem". Considering another two mid-size US companies: Pentair and Watts Water. There is also a large south american firm Rio somthing but I've just had a mind blank trying to remember it.
Of the five I'm inclined towards Watts but as yet haven't bought anything. Seems to be an industry where size really matters!

[Financially dependant]

I remember reading something a year or so ago about a former oil tycoon (or something of that nature) buying up water as he thought that was the future.

Boone Pickens, CEO of BP Capital, oil tycoon and owner of some US water rights. He has been ahead of the curve for 50 years!

http://www.theoildrum.com/tag/t._boone_pickens

[Winston001]

Good call FG, we discussed this theme last year. http://www.sharetrader.co.nz/showthread.php?t=3360&highlight=Water

I haven't invested yet, been watching PHO on AMEX which rose $4 since I started - but the $NZ also rose a similar amount. I'd prefer Australian stocks as they are easier to keep an eye on but PHO is an easy index-type investment. There is also the international version PIO which appeals to me.

[Financially dependant]

This was on breakfast tv, did any one else see it? a bit loose on facts but very interesting with good returns so far.

http://www.tv3.co.nz/Video/Awaytoinvestinwater/tabid/369/articleID/41288/cat/167/Default.aspx?articleID=41288#video

[peat]

Herald promoting The KBC Global Water Fund

http://www.nzherald.co.nz/section/12/story.cfm?c_id=12&objectid=10485409

[shasta]

Herald promoting The KBC Global Water Fund

http://www.nzherald.co.nz/section/12/story.cfm?c_id=12&objectid=10485409

Have been looking into WATER related service companies again

I mentioned TSE earlier in the thread (& it's spin off the TSI fund), but another one i'm looking at is UGL.

7 straight years of increasing revenues, profits, eps, & dividends

Relatively low gearing, & high interest times covered.

Here's the latest presentation...

http://www.unitedgroupltd.com/templates/pdf/FY08%20Analyst%20Presentation%20FINAL.pdf

[shasta]

Have been looking into WATER related service companies again

I mentioned TSE earlier in the thread (& it's spin off the TSI fund), but another one i'm looking at is UGL.

7 straight years of increasing revenues, profits, eps, & dividends

Relatively low gearing, & high interest times covered.

Here's the latest presentation...

http://www.unitedgroupltd.com/templates/pdf/FY08%20Analyst%20Presentation%20FINAL.pdf

AS UGL has a "Water" related division, i'll post this ann here

http://www.stocknessmonster.com/news-item?S=UGL&E=ASX&N=520272

[shasta]

AS UGL has a "Water" related division, i'll post this ann here

http://www.stocknessmonster.com/news-item?S=UGL&E=ASX&N=520272

UGL - Contract win (i like there water services division)

http://www.stocknessmonster.com/news-item?S=UGL&E=ASX&N=522135

[Joe King]

Just noticed this thread.
Agree water is a valuable recourse. Since this is election time just thought it might be worth mentioning....
About 1968 the then gov't gave lake Taupo back to Maori plus a few $mill. and the right to impose a surcharge to fishing licenses. About the same time lake Rotoaira was handed back to Maori, plus a few more $mill and the right to charge for fishing licences exclusively. Around 10 years ago the gov't gave back the whaio and Whiranaki rivers plus a few $mill and a power station to Maori, followed by Wanganui river and a few more $mill. In 1928 the then Gov't paid Maori 500,000 pounds for the Rotorua lakes plus 16,000 pound a year in perpetuity. About 2 months ago the Gov't officially handed back 13 lakes and $10 mill. About the same time the gov't signed a deal to give Tainui the Waikato river bed... plus yup you guessed it a few more $mill ($100,000,000 actually). Just a few weeks ago the gov't committed $72 million to cleaning up the now Maori owned lakes Rotorua and Rotoiti. I think most of the South Island Lakes and rivers (plus a few more $mill) now belong to Ngai Tahu.
So, if you want to get into water investments seems the easiest way might be to learn "Hey Bro" and/or "Kia Ora". Apparently that is all that is required to be eligible for the Maori roll these days...??

[shasta]

Just noticed this thread.
Agree water is a valuable recourse. Since this is election time just thought it might be worth mentioning....
About 1968 the then gov't gave lake Taupo back to Maori plus a few $mill. and the right to impose a surcharge to fishing licenses. About the same time lake Rotoaira was handed back to Maori, plus a few more $mill and the right to charge for fishing licences exclusively. Around 10 years ago the gov't gave back the whaio and Whiranaki rivers plus a few $mill and a power station to Maori, followed by Wanganui river and a few more $mill. In 1928 the then Gov't paid Maori 500,000 pounds for the Rotorua lakes plus 16,000 pound a year in perpetuity. About 2 months ago the Gov't officially handed back 13 lakes and $10 mill. About the same time the gov't signed a deal to give Tainui the Waikato river bed... plus yup you guessed it a few more $mill ($100,000,000 actually). Just a few weeks ago the gov't committed $72 million to cleaning up the now Maori owned lakes Rotorua and Rotoiti. I think most of the South Island Lakes and rivers (plus a few more $mill) now belong to Ngai Tahu.
So, if you want to get into water investments seems the easiest way might be to learn "Hey Bro" and/or "Kia Ora". Apparently that is all that is required to be eligible for the Maori roll these days...??

I'll put the TSE info on the Water thread, it's primarily Infrastructure, but i like it's Water Services Division in particular. Cheap growing company!

TSE - Annual highlights

http://www.stocknessmonster.com/news-item?S=TSE&E=ASX&N=524748

TSE - Dividend Reinvestment Programme

http://www.stocknessmonster.com/news-item?S=TSE&E=ASX&N=524750

TSI - Annual report (NB, this infrastructure fund was spun out of TSE, who own 49%)

http://www.stocknessmonster.com/news-item?S=TSI&E=ASX&N=524710

[bear]

New water related company for the ASX

not read anything about this one .... be interesting to see how their float went/ is going ....... $A35m in this market could be tricky ... will investigate

see attached link

http://www.waterresourcesgroup.com/irm/content/home.html

Bear

[shasta]

New water related company for the ASX

not read anything about this one .... be interesting to see how their float went/ is going ....... $A35m in this market could be tricky ... will investigate

see attached link

http://www.waterresourcesgroup.com/irm/content/home.html

Bear

TSE - AGM Presentation
http://www.stocknessmonster.com/news-item?S=TSE&E=ASX&N=525981

TSE - AGM Announcement
http://www.stocknessmonster.com/news-item?S=TSE&E=ASX&N=525982

TSE - Chairman & MD's speech
http://www.stocknessmonster.com/news-item?S=TSE&E=ASX&N=525983

[arco]

Um amazing......................

A glass of orange juice, for example, needs 850 litres of fresh water to produce, according to the Pacific Institute and the Water Footprint Network, while the manufacture of a kilogram of microchips — requiring constant cleaning to remove chemicals — needs about 16,000 litres. A hamburger comes in at 2,400 litres of fresh water, depending on the origin and type of meat used.

Earth is running short of fresh water (http://www.greenchange.org/article.php?id=3853)





(http://www.greenchange.org/article.php?id=3853)