status is none of yer' damn business!! :-)
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Really liking the chart here.
We get past that .18 and I dare say we would touch that .20.
We are already double the average volume today and we are just getting started this week.
I know, getting all giddy with anticipation.
Me too bud.
Wait until the updates actually come!!!!!
PURO .17x.175 now.
Africa's potential water wars
By BBC News Online's Russell Smith
The main conflicts in Africa during the next 25 years could be over that most precious of commodities - water, as countries fight for access to scarce resources.
Potential 'water wars' are likely in areas where rivers and lakes are shared by more than one country, according to a UN Development Programme (UNDP) report.
The possible flashpoints are the Nile, Niger, Volta and Zambezi basins.
The report predicts population growth and economic development will lead to nearly one in two people in Africa living in countries facing water scarcity or what is known as 'water stress' within 25 years.
Water scarcity is defined as less than 1,000 cu.m of water available per person per year, while water stress means less than 1,500 cu.m of water is available per person per year.
The report says that by 2025, 12 more African countries will join the 13 that already suffer from water stress or water scarcity
Nile battle
The influential head of environmental research institute Worldwatch, Lester Brown, believes that water scarcity is now "the single biggest threat to global food security".
More and more people need scarce supplies of drinking water
He says that if the combined population of the three countries the Nile runs through - Ethiopia, Sudan and Egypt - rises as predicted from 150 million today to 340 million in 2050 then there could be intense competition for increasingly limited water resources.
"There is already little water left when the Nile reaches the sea," he says.
And he predicts that Egypt is unlikely to take kindly to losing out to Ethiopia - a country with one-tenth of its income.
Indeed water is already a catalyst for regional conflict.
In the dying years of the previous Ethiopian government, tensions with Egypt increased rapidly when the rulers in Addis Ababa pondered the construction of dams on the Nile.
There is also another potential water war in Southern Africa involving Botswana, Namibia and Angola.
The River Cuito which begins in Angola before heading through the Caprivi strip in Namibia and ending in the marshlands of the Okavango Delta in Botswana runs through an area that is no stranger to tensions and conflict between neighbours.
Grain imports
Fresh water is also becoming increasingly unusable because of pollution.
But given increasing populations Worldwatch identifies one way of easing demands for water - importing grain.
Agriculture is by far the biggest user of water in Africa accounting for 88% of water use.
It takes about 1,000 tonnes of water to produce every tonne of grain.
Worldwatch says that already the water needed to produce the annual combined imports of grain by the Middle East and North Africa is equivalent to the annual flow of the Nile.
Importing grain is much easier than importing water, but for poorer countries in Africa it may not be an option.
For this reason the UN proposes monitoring worldwide reserves of drinking water and establishing agreements for the use of water.
Zimbabwe cholera deaths not slowing; 1,600 dead
Tue 30 Dec 2008, 17:55 GMT
[-] Text [+] GENEVA, Dec 30 (Reuters) - The rate of cholera infections and deaths in Zimbabwe shows no signs of slowing, the World Health Organisation (WHO) said on Tuesday.
The WHO said 1,608 people had died of the disease -- which could be treated relatively easily if Zimbabwe's public sanitation and health systems had not broken down so catastrophically -- out of 30,365 reported cases.
WHO spokesman Gregory Hartl said the figures, for Dec. 29, marked an increase of 44 deaths and 1,200 cases over the previous day -- a rate that has been steady over the last few weeks. The epidemic began last August.
"Infections are still climbing and with the rainy season on the way the situation could get worse," he said.
The International Federation of Red Cross and Red Crescent Societies, the world's largest disaster relief network, says the cholera mortality rate is exceptionally high and could easily go higher.
Last week the WHO and international Red Cross officials said the movement of people visiting relatives and friends during the Christmas holidays could also help to spread the disease, which is affecting all of Zimbabwe's 10 provinces.
The outbreak has heightened the humanitarian crisis in Zimbabwe, where President Robert Mugabe -- relying on backing from South Africa -- is resisting calls from Western and some African leaders to step down.
On Monday, South Africa called for continued efforts for the formation of a unity government in Zimbabwe under Mugabe, although the opposition Movement for Democratic Change (MDC) has warned it might pull out of the long and so far fruitless talks.
International aid agencies say Zimbabwe's health care and water sanitation systems have broken down amid the political chaos and violence of the past year. (Editing by Kevin Liffey)
PURO doing very well today, just the beginning here too.
thanks, will do.
To be honest I didn't realize the problems until I started to DD PURO. NO it seems that everywhere I look I see issues regarding polluted water.
Independant Performance Evaluation Report Exceeded Expectations
At a cost of over $250,000 the performance of the PURIO technology was monitored and evaluated by Canadian Environmental Technology Advancement Corporation-West (CETAC-WEST). The comprehensive evaluation report is similar in most respects to USEPA or ISO 14023 protocol. Operational data from the plant, actually serving the wastewater treatment needs of a community of 120 homes was evaluated over a nine-month period. This report, summarized on Table 1 below, confirmed the unit’s ability, alone, to meet “enhanced primary” treatment objectives in terms of BOD (biological oxygen demand) and TSS (total suspended solids). It exceeded expectations by reaching “tertiary” standards in phosphorus removal. The plant was not designed to address nitrification or nitrogen removal so it did little, as expected, in either.
Coupled with accessory components, the train met the even higher “tertiary” treatment efficiency in terms of BOD and TSS and phosphorus concentrations.
Table 1.
Primary Treatment Secondary Treatment1
Raw Sewage Typical Standards Purio Separator Typical Standards Treatment Train
TSS (mg/l) 200-300 50-100 32 10-30 5
BOD (mg/l) 200-300 75-150 62 10-25 9
P (mg/l) 7-10 5-7 1 3.6-6.5 0.2
Total Coliform >107 >200,000 >1,000,000 <200,000 1,600
1Train includes Purio separator, rapid gravity sand filters, Waterloo Biofilters and UV disinfection.
Smaller-scale “Batch” unit developed and Sold
Its technology has been employed in a smaller scale “batch” version of the clarifier and is successfully operating on location. This unit produces clarified water for household use. The unit has now been serving a rural household in Canada for about three years with total success. The batch unit draws water from a lagoon (or dugout as it is sometimes called) that is overgrown by reeds, grasses and contains abundant wildlife. This raw water has a green color and a strong “wild” odor making it unfit for human use.
The water is drawn into the unit, clarified and stored in a cistern. The clarification process removes all color, and nearly all of the suspended solids to produce a clear, clean odorless product. No further treatment is required for its use in laundry, toilets and bath use. For drinking, this clarified water is then polished by means of a Reverse Osmosis system to produce high quality drinking water that is then passed through an Ultra-violet sanitizer to assure sterility.
The capacity of the batch clarifier unit is 1000 gallons (4000 liters) per day. The unit is fully automatic and requires only about $20.00 CDN per month in in-puts.
The product was able to out-compete regular filtration methods proposed by other companies and has proven its effectiveness over several years of trouble-free operation.
PURO moving .159.
PURO .159 now . Major moves coming on this one.
PURO .159, keep an eye on this folks.
Water Pollution Facts and Figures
We sometimes hear politicians and pundits say, "There's no water pollution problem anymore. We've done very well cleaning up our water." Now, we would never suggest that anyone take a politician at his word or believe the TV—proceed into the spin zone at your own risk. But since there are no rivers on fire now and we don't see too many stories about fish kills, they must be right, eh? On the other hand, a majority of people in the Western world seem to think their tap water is much less safe and drinkable than bottled water, which is a very expensive way for people to quench their thirst.
So, when it comes to water pollution facts, who's all wet and who's got it right? This article is the first of a multi-part series that will splash around in the deep end of the water pollution issue.
BEFORE THE WATER POLLUTION FACTS – WATER BASICSBefore we dive into our pool of water pollution facts, it will be helpful to do a quick review of the different types of water in general:
Ocean Water: The vast majority of water on the planet is the salt water in the oceans and seas.
Fresh Surface Water: This is the fresh water in rivers, streams, lakes, ponds and similar bodies of water. (Almost all of these contain fresh water, though a few lakes contain salty water.) Technically, the world's ice caps and glaciers also fall into this category , and actually contain very, very large amounts of fresh water.
Groundwater: The majority of the planet's liquid freshwater is stored in underground aquifers. It's important to remember that groundwater pollution is very difficult to treat, and it doesn't just "flush out" on its own. Water that enters an aquifer remains there for an average of 1,400 years!
Hey, I think that was our first water pollution fact! Here are some more.
WATER POLLUTION FACTS FOR THE UNITED STATESWater Pollution Fact #1
40% of America's rivers are too polluted for fishing, swimming, or aquatic life.
Water Pollution Fact #2
Even worse are America's lakes—46% are too polluted for fishing, swimming, or aquatic life.
Water Pollution Fact #3
Two-thirds of US estuaries and bays are either moderately or severely degraded from eutrophication (nitrogen and phosphorus pollution).
Water Pollution Fact #4
The Mississippi River—which drains nearly 40% of the continental United States, including its central farm lands—carries an estimated 1.5 million metric tons of nitrogen pollution into the Gulf of Mexico each year. The resulting hypoxic coastal dead zone in the Gulf each summer is about the size of Massachusetts.
Endangered Rivers
The river-protection group American Rivers lists the primary water pollution threats for U.S rivers:
-- Polluted runoff from roads, parking lots, and neighborhood lawns
-- Runoff from farms (pesticides, fertilizers, and animal waste)
-- Livestock damage to riparian areas (reduces near-stream filtering abilities)
-- Logging and mining operations
Of the 1200 species listed as threatened or endangered, 50% depend on rivers and streams. At least 123 freshwater species became extinct during the 20th century.
Source: American Rivers - River Facts page
Water Pollution Fact #5
1.2 trillion gallons of untreated sewage, stormwater, and industrial waste are discharged into US waters annually. The US EPA has warned that sewage levels in rivers could be back to the super-polluted levels of the 1970s by the year 2016.
Water Pollution Fact #6
In any given year, about 25% of beaches in the US are under advisories or are closed at least one time because of water pollution.
WATER POLLUTION FACTS BEYOND THE U.S.Water Pollution Fact #7
Asian rivers are the most polluted in the world. They have three times as many bacteria from human waste as the global average and 20 times more lead than rivers in industrialized countries.
Water Pollution Fact #8
In 2004, water from half of the tested sections of China's seven major rivers was found to be undrinkable because of pollution.
Canada’s
Most Endangered Rivers
#1 - Petitcodiac River
#2 - Eastmain River
#3 - Okanagan River
#4 - Taku River / Iskut River
#5 - Groundhog River
#6 - Milk River
#7 - Peel River
#8 - Red River
#9 - Churchill River
#10 - Bow River
SOURCE: EndangeredRivers.net
Water Pollution Fact #9
The quality of water in Europe's rivers and lakes used for swimming and water sports worsened between 2004 and 2005, with 10% of sites not meeting standards.
Water Pollution Fact #10
Slovakia has the lowest compliance with EU guidelines for freshwater areas, with only 22.4% of bathing sites meeting the standards.
Water Pollution Fact #11
Thirty percent of Ireland's rivers are polluted with sewage or fertilizer.
Water Pollution Fact #12
The Sarno is the most polluted river in Europe, featuring a nasty mix of sewage, untreated agricultural waste, industrial waste, and chemicals.
Water Pollution Fact #13
Greece has the cleanest coastal waters, followed by Spain and Germany. Lithuania and Estonia have the dirtiest coastal waters.
Water Pollution Fact #14
The King River is Australia's most polluted river, suffering from a severe acidic condition related to mining operations.
Water Pollution Fact #15
Pollution of freshwater (drinking water) is a problem for about half of the world's population. Each year there are about 250 million cases of water-related diseases, with roughly 5 to 10 million deaths.
Water Pollution Fact #16
Diseases caused by the ingestion of water contaminated with pathogenic bacteria, viruses, or parasites include:
cholera
typhoid
schistosomiasis
dysentery and other diarrheal diseases
Water Pollution Fact #17
Bangladesh has some of the most polluted groundwater in the world. In this case, the contaminant is arsenic, which occurs naturally in the sediments. Around 85% of the total area of the country has contaminated groundwater, with at least 1.2 million Bangladeshis exposed to arsenic poisoning and with millions more at risk.
Water Pollution Fact #18
Each year, plastic waste in water and coastal areas kills up to:
100,000 marine mammals,
1 million sea birds, and
countless fish.
Water Pollution Fact #19
The world's seas are beset by a variety of water pollution problems. See the table below for 10 of the worst areas.
Water Pollution Fact #20
In one week, a typical cruise ship generates:
210,000 gallons of sewage;
1,000,000 gallons of "gray water" from showers, sinks, dishwashers and clothes washers;
37,000 gallons of oily bilge water;
more than eight tons of solid waste; and
toxic wastes from onboard operations like dry cleaners and photo processing laboratories.
Water Pollution Fact #21
Around 80% of the pollution in seas and oceans comes from land-based activities.
fill the gap and should head back up.
Facts About the Global Water Crisis and U.S. Efforts
1.1 billion people lack access to clean water and 2.6 billion people, almost half the total population of developing countries, do not have access to adequate sanitation.1
By 2015 Sub-Saharan Africa will account for more than half of the global clean water deficit, or the gap between water scare countries and those without water shortages, and just under half of the sanitation deficit, with South Asia accounting for the bulk of the remainder.2
At any given time close to half the people in the developing world are suffering from one or more of the main diseases associated with inadequate provision of water and sanitation such as diarrhea, guinea worm, trachoma and schistosomiasis. Diarrhea alone accounts for 1.8 million child deaths each year—4,900 deaths each day or an under-five population equivalent in size to that for London and New York combined.3
40 billion hours a year are spent collecting water in sub-Saharan Africa—a year’s labor for the entire workforce in France. Water-related diseases cost 443 million school days each year—equivalent to an entire school year for all seven-year-old children in Ethiopia.4
The global aggregate costs of lack of access to water and sanitation, measured in foregone opportunity and the expenses related to treatment of disease, total $170 billion, or 2.6% of developing country GDP.5
By 2025 more than 3 billion people could be living in water-stressed countries—and 14 countries will slip from water stress to water scarcity.6
Fifteen countries, most in the Middle East, annually consume more than 100% of their total renewable water resources.7
For some 39 countries, with a combined population of 800 million people, at least half their water resources originate beyond their borders.8
Every $1 spent in the water and sanitation sector creates on average another $8 in costs averted and productivity gained.9
Over 15 U.S. federal agencies are involved in international water issues. A majority of funding goes to 3 agencies – USAID, the Department of Defense, and the Department of State. In FY 2003-2005, the US government gave more than $1.7 billion in ODA for water-related activities.10
Funding is concentrated in a few areas: in 2005, USAID provided as much funding for Water for the Poor Initiatives in Egypt, Iraq, Jordan and the West Bank/Gaza ($100.414 million) as for the entire continent of Africa ($101.491 million), or for the Asia/Near East region ($99.333 million).11
Yep, nothing unexpected going on here right now. We all (except for a few) knew the New Year would come in with a bang for PURO.
Water: The Ultimate Commodity
by Jim McWhinney (Contact Author | Biography)
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In the closing days of 2005, the PowerShares Water Resources Portfolio became the most recent addition to a growing number of ways to invest in water. This new exchange-traded fund (ETF) is designed to track the performance of the Palisades Water Index, an unmanaged benchmark. Why the interest in water? Like gold and oil, water is a commodity - and it happens to be rather scarce. (To see the lastest news in the commodity market, visit Commodity News at Forbes.com.)
Global Water Resources
About 70% of the earth's surface is covered in water, but 97% of it is saltwater, which is unfit for human use. Saltwater cannot be used for drinking, crop irrigation or most industrial uses. Of the remaining 3% of the world's water resources, only about 1% is readily available for human consumption.
Global Shortage
Rapid industrialization and increasing agricultural use have contributed to worldwide water shortages. Areas that have experienced water shortages include China, Egypt, India, Israel, Pakistan, Mexico, parts of Africa and the United States (Colorado, California, Las Vegas and the East Coast), to name but a few.
Pollution also highlights the need for clean water. In the U.S., the dead zone off the Gulf Coast highlights the impact of fertilizer runoff, and methyl tertiary butyl ether (MTBE), an additive in unleaded gasoline, can be found in well water from California to Maryland. Overseas, highly publicized incidents in Russia, China and elsewhere demonstrate that pollution isn't limited to the West. Of course, fouled water supplies further limit the amount of fresh water available for human use.
Indexes
Like any other scarcity, the water shortage creates investment opportunities, and interest in water is at an all-time high. Here are some of the more popular indexes designed to track various water-related investment opportunities:
Palisades Water Index - This index was designed to track the performance of companies involved in the global water industry, including pump and filter manufacturers, water utilities and irrigation equipment manufacturers. The ticker symbol for the Palisades Water Index is ZWI. The index was set at 1000 as of December 31, 2003. It closed at 1351.08 on December 30, 2005.
Dow Jones U.S. Water Index - Composed of approximately 23 stocks, this barometer climbed from 500 to 800 over the 12 months ending December 31, 2005. The ticker for the Dow Jones Water Index is DJUSWU.
ISE-B&S Water Index - Launched in January 2006, this new index represents water distribution, water filtration, flow technology and other companies that specialize in water-related solutions. It contains 20 stocks. The ticker for the ISE-B&S Water Index is HHO.
S&P 1500 Water Utilities Index - A sub-sector of the Standard & Poor's 1500 Utilities Index, this index is composed of just two companies, American States Water (ticker: AWR) and Aqua America (ticker: WTR). In 2005, the S&P 1500 Water Utilities Index rose in excess of 45% .
The Bloomberg World Water Index and the MSCI World Water Index provide a look at the water industry from an international perspective, although it can be rather difficult to find current information about either index. There are also a variety of utility indexes that include some water stocks. (For further reading, see Indexes: The Good, The Bad And The Ugly.)
Investment Opportunities
A look at the holdings of any of the water indexes provides an easy way to begin your search for suitable investments. Companies from blue chip stalwart General Electric to micro cap Layne Christensen are all seeking a piece of the water market. In addition to direct stock purchases, some of the larger firms offer dividend reinvestment plans. Firms seeking to profit from water-related businesses include beverage providers, utilities, water treatment/purification firms and equipment makers, such as those that provide pumps, valves and desalination units.
When it comes to bottled water, the market is growing internationally. Demand is on the rise from China to Mexico, following in the footsteps of the spike in U.S. consumer demand. The Beverage Marketing Corp. reports that the bottled water market in the U.S. grew 19% in 2004, and U.S. consumers drank 26 gallons of bottled water per person in 2005, up from 11.7 gallons in 1995. On the desalination front, some 100 countries currently rely on desalination for at least part of their freshwater consumption needs.
If stock picking doesn't interest you, ETFs, mutual funds and unit investment trusts (UITs) also provide plenty of opportunities to invest in water. The PowerShares Water Resource ETF (ticker: PHO), mentioned earlier, tracks the Palisades Water Index, and the iShares Dow Jones U.S. Utilities Index ETF (ticker: IDU) provides some exposure to water-related stocks. On the mutual find side, as with ETFs, pure-play water funds are hard to find, but funds such as the New Alternatives Fund (ticker: NALFX) and the ICON Telecommunications & Utilities Fund (ticker: ICTUX) provide some exposure to the sector, as do numerous other utility funds and ETFs. (To learn more, see Introduction To Exchange-Traded Funds.)
Additionally, two unit investment trusts that specialize in water-related investments are the Claymore-Boenning & Scattergood Global Water Equities UIT (ticker: CGWEAX) and the Claymore-Boenning & Scattergood U.S. Water Equities portfolio (ticker: CUSWAX).
Conclusion
Recent years have seen an upswing in the demand for investments that seek to profit from the need for fresh, clean water. If the trend continues, and by all indications it will, investors can expect to see a host of new investments that provide exposure to this precious commodity and to the firms that deliver it to the marketplace. There are currently numerous ways to add water exposure to your portfolio - most simply require a bit of research.
Just as with any other investment in commodities or sector funds, wise investors should limit their exposure to water. Generally speaking, highly concentrated investments such as these should not represent more than 10% of the assets in a well-diversified portfolio. Limiting exposure to concentrated positions provides some opportunity to capture positive returns while limiting overall portfolio volatility.
For more information about concentrated portfolios and diversification, see Do Focused Funds Provide A Better Outlook?, Introduction To Diversification and The Importance Of Diversification.
Not very smart to stand in front of a moving train.
You got it bud already loaded and the rockin' has started!!!!
17's up now!!!!!!!!!!!!
.17 are up.
Thinking the same thing here.
PURO .145x.16
PURO gapping up a bit this AM. .145x.16
.145x.16 now
Any updates and it should be smooth sailing from here.
Bulls Love Water, Longterm Water Ideas
Santosh Sankar
Water, unarguably the most precious natural resource in the world is attracting investors who find its longterm scarcity attractive. There has been an increasing concern about the future of fresh water supplies used in a wide variety of applications from farming to bathing. The environment is shaping up favorably for companies involved in water management, treatment, and distribution. I also believe that corporations involved in the manufacturing of the components used to lay down the water supply chain- pipes, brackets, filtration systems, etc. The growing concern for water has even attracted the likes of T. Boone Pickens has been quietly accumulating the rights to water, yes, water in Texas and the Midwest.
Before you read any further I will advise that many water companies have yet to operate profitably since they are growing and investing heavily in their operations. This is an obvious risk that should not be taken lightly; these companies have no free cash flow and post negative EPS for the most part. I would suggest that water ETFs are a better way to take advantage of the favorable operating environment while protecting your portfolio from the risk.
Pickens Loves Water
The most notable investor is T. Boone Pickens, the legendary energy investor who has surprisingly gone green with his interests. Pickens is a proponent of water and has jumped head first into the water management field. The establishment of Mesa Water in 1999 marked the beginning of Pickens’ mass acquisition of water rights in Texas. Texas established a law in the early 1900s that simply stated that “the biggest pump wins.” This meant that one could build a pump and essentially pump water right out of your backyard- the idea that someone could make money off your property did not excite Pickens. After accumulating rights to large amounts of ground water, Pickens strategically found ways to cash in on the imminent scarcity of water in urban Texas. To read in detail about Picken’s water plans, visit Business Week. Investors have followed this trend as water management companies have entered to capitalize on water as related ETFs are making a rise.
Water ETFs
As I stated earlier, water ETFs seem to be the best way to capture the boom in the water commodity/infrastructure market. Here are some solid ETF plays that show great potential as more people begin to tackle our future water problems.
PHO has hit highs of over $22 as the largest water ETF with over 2 billion in assets under management. FIW and CGW however have had a rough time but I do like them as a longterm holding. It is a simple move, all these ETFs are down YTD but water is scarce in the long run, in my opinion this is a solid buying opportunity. The companies these ETFs hold are set to receive great business as more and more people realize how grave our water issues can get. ETFs are diversified well over the utilities, bottlers, filtration, and pipeline entities that are set to explode. Do not be discouraged by the poor YTD performance if you are here for a LONGTERM enviromental play.
If you are looking for a specific company, General Electric is committed to reducing water usage and has entered a joint venture to provide water filtration and management solutions. GE which has seen a lackluster year is providing investors with great buying opportunities as a leader in industry and in my opinion solid longterm growth prospects with their ecofriendly products.
Longterm investors should look at water and consider the long term opportunities present for companies involved in this business. I do not expect immediate gains with the current economic enviroment paired with the lack of urgency for proper water management. If you are unsure about this play, Pickens’ forsight should provide some guidance as the world faces not just energy problems, but problems with many of it’s natural resources.
- Santosh Sankar
Looks as if the big guns feel the same a we do about the water crisis we are heading towards
Very nice start to the week.
Global water business, a growth industry, attracting more investors
November 18, 2008
Realistic expectations drive long-term gains, experts predict
by Keith Schneider
Circle of Blue
NEW YORK – It didn’t quite land with a thunk!, but it did attract some attention last August when a 16-page investment brochure from Dublin, California dropped into the mailboxes of stock buyers all over the country. “Water stocks,” declared the investor report, “are set to go bonkers!”
A month later, of course, the two largest mortgage banks in the United States were insolvent, Lehman Brothers collapsed, and Congress approved a $700 billion rescue plan as stock markets all over the world crashed. It is far from clear how the election of Barack Obama to the American presidency will influence market behavior.
Still, executives and analysts say the domestic and global market for the pipes, pumps, filters and other equipment to deliver and purify fresh water is steadily growing, and providing opportunities for long-term investment.
In spite of all the financial challenges of the last month, there is plenty of money that could be applied to the water problem.
– Paul Reiter“In spite of all the financial challenges of the last month, there is plenty of money that could be applied to the water problem,” said Paul Reiter, executive director of the London-based International Water Association. “It’s creating realistic expectations on the investors’ side, and an environment in which those investments can be made at pace with people’s income and economic development.”
Noting that 95 percent of water is provided by public agencies, and that infrastructure costs are high, debt-laden, and rates of return tend to be low, Reiter said the water play tends to take years to mature. “The picture that you want to have is not of going from here to there,” he said. “It’s a picture of stair-step investments that both lead and follow the income stream of that community.”
A $400 Billion Market
Just how big is the world’s water industry? Nobody is quite sure. Goldman Sachs, the New York investment bank, puts the global market for pumps, pipes, filters, and other purification and sanitation equipment at $400 billion. The Pacific Institute’s latest World’s Water, a bi-annual report published two years ago, estimates that the United States share of the industry amounts to roughly $100 billion in yearly sales, and growing three to four percent a year.
How much larger will the industry get around the world? Much larger, say analysts, a view shared by environmental, business development, and international relations agencies in the United States and globally.
The reason? The planet’s growing population and climate change is making freshwater scarcer. At the same time rising wealth in developing nations is prompting new investments in pipes, filters, pumps, purification plants, and other equipment needed to produce and transport water.
Moreover, industrialized nations have deferred infrastructure development and maintenance, producing an immense new market for water transport and filtration systems. The market for new water infrastructure development in the United States, according to several estimates, could be $1 trillion.
And last, global investors are looking past the potentially significant geo-political and cultural consequences and starting to see fresh water as a commodity — just like gold or oil — a commodity that is under appreciated, undervalued, and growing scarce. Significant investments are being made in desalination in Israel and California, according to news reports. China is transferring water, through a sturdy new system of canals and pumps, from the southern region of the country to the arid north.
The Water Investor Class
T. Boone Pickens, the billionaire oilman, spent over $100 million since 1998 purchasing land in the Texas Panhandle and the water rights beneath it. He’s planning to build the largest wind farm in the world on the surface. And he announced another plan, temporarily suspended, to sell $165 million worth of water to Dallas, which is 165 miles away.
“Water is a growth driver for as long and far as the eye can see,’’ Deane M. Dray, who follows many water companies for Goldman Sachs, told the New York Times earlier this year.
Major companies are getting involved. Siemens Water Technologies, accounted for about $2.42 billion (€1.9 billion) of Siemens’ $96.0 billion (€75.4 billion) it earned in revenue last year. ITT Water Technologies accounts for 40 percent of the more than $10 billion (€7.85 billion) that the White Plains-based company will earn this year. Dow has invested hundreds of millions of dollars in water equipment companies over the last year.
Though not unaffected by the market downturn, utility companies like American Water Works (AWK) fared better than the market average when compared to the DOW during the same period (graphic by Eric Daigh/Circle of Blue, data from Google Finance).Before the collapse of the credit and stock markets, that kind of market interest put companies that treat, move, purify, pump, and sell clean fresh waters among the most attractive industrial investments. Analysts who follow the industry say water stocks have followed markets down over the past month, though in some cases less steeply than auto, banking, steel, and housing company shares. But once the markets recover, say analysts, the underlying fundamental trends in population, growing wealth, water scarcity, infrastructure, and competition for fresh water could prompt a boom in water company investment.
The water sector is not recession proof. But it is recession resistant.
– Neil D. Berlant“The water sector is not recession proof. But it is recession resistant,” said Neil D. Berlant, an investment banker and manager of the PFW Water Fund, who has been involved in the industry for more than two decades. “We are talking about things here that are absolutely essential. Demand for water will never go to zero or you will die. Demand for processing will never go to zero.”
Outlook For Water Investment
Berlant and the growing number of analysts who follow water related shares say the industry has resisted the downward trend that affected most other industries. For instance, one widely watched water fund, PowerShares Water Resources, broke even in the year that ended in the second week of September. In comparison, during the same period, Standard & Poor’s 500-stock index fell 14 percent.
Top performers in the water industry include Northwest Pipe, a pipe manufacturer, jumped 49 percent in 2008 before the market crash. Shares of American Water Works, a utility, rose 3 percent from April, when the company went public, outperforming almost every other utility until the market downturn.
The United States has 60,000 municipal water companies and some 1.5 million miles of pipe to transport drinking water and wastewater. Over the next five years, 70 percent of the network will surpass its useful life. That means pipe builders will be busy replacing the nation’s network of concrete pipes. What’s more, despite a deepening drought in the southwest, the fastest growing region in the United States is southern California, Arizona, New Mexico, Utah, and Colorado, all desert states. States and local governments are planning to add infrastructure to move water to thirsty communities and industries.
Without any other sources for freshwater, desalination is quickly becoming vital to many regions. St. Martin’s desalination plant is run by France’s Veolia Water Caribbean.Overseas, say global stock analysts, water companies also are in position to take advantage of rising demand. Sextant Capital, a hedge fund, purchased water rights to three glaciers in northern Europe, and are planning to bottle or ship melting glacier water that can be sold to thirsty parts of the world.
France’s Veolia Environnement earns more than half of its revenues from managing municipal and industrial water facilities around the world. It has desalination operations in Spain, Australia and the United Arab Emirates.
Veolia also serves 29 million people in China, where it supplies water and operates a treatment facility in the city of Shenzhen, just north of Hong Kong. It also recently signed a water supply agreement in Tianjin, the nation’s third-largest city after Beijing and Shanghai.
Press reports say rising fuel prices have hurt Veolia’s transport and other non-water businesses, which have cut its stock price to $47 a share, a nearly 50 percent drop since December 2007. But analysts who follow the company anticipate a 17% jump in profits next year, to $3.59 per share and the stock trades at a reasonable 13 times expected earnings.
Another company to watch, according to analysts, is Ameron International, which makes concrete and steel pipes for transporting water. Ameron has strong pipeline businesses in South America, Europe and Asia, along with several joint ventures in the Middle East, so it seems well positioned to benefit from the global surge in water demand.
William Brennan, president of Aqua Terra Asset Management and one of the top water analysts, says the company, which recently bought a fiberglass-pipe manufacturer in Brazil, could be in the market for more acquisitions. Brennan forecasts $6.86 in earnings per share for the fiscal year that ends November 2008, up 12 percent from 2007. At $109, the stock sells for 13 times the 2009 fiscal forecast.
Still, even as the water industry has experienced steady growth worldwide, many executives and analysts anticipate significant turbulence. The reason, they say: The price of water has begun to climb as competition for the resource increases. Prices could triple in the United States within the next decades, says Berlant.
Since Pickens announced his plan, according to local news articles, the price of water in some places in Texas has doubled to $600 an acre foot. The price of water rights in the Middle Rio Grande in New Mexico reached $5,500 an acre-foot two years ago, up from $1,000 an acre foot in 1993.
PICO Holdings owns 100,000 acre-feet of water rights in Nevada and Arizona and seeks to expand its western water rights in the United States.
For the time being water is cheap in most of the United States and under valued in most other parts of the world. Homeowners in southern California, for instance, pay about $3 for 750 gallons of water, or what the average American uses in a week.
“Water will become much more politicized over the next decade,” said Berlant. “Not because of water shortages. We don’t really have shortages of water here. What we have is a shortage of cheap water. As the price of water rises we will become much more aware of it. What you get for free you tend not to pay much attention to. The price of water is going to rise dramatically. Over the next few years water prices could double or triple and we will see an entirely different way that people look at it, expect it, and demand it.”
Keith Schneider, a former New York Times national correspondent, is senior editor and producer at Circle of Blue. C.T. Pope, a Circle of Blue researcher, contributed to this article. Reach Schneider at keith@circleofblue.org and Pope at cody.pope@circleofblue.org.
Morning SH, you ready????
Yep, would be real nice to see some updates on anyof these.
09/09 PR
Purio Receives Letter of Intent to Install Water and Waste-Water Works
"Purio will participate in the operation of the water utilities services as a utility company, thereby creating a residual income stream for our company. A project like this, fully on-line, would generate annual revenues to the company of approximately $350,000."
11/19 PR
Purio's Direct Water Distribution Division Writes First Contracts
Daryl English, President of Purio, says, "We have now officially set sail into the marketplace. Businesses are motivated in many ways to take action and upgrade their office water service from bottle-style dispensers to modern point-of-use (POU) water purifiers and totally do away with bottled water delivery. In today's economy, the first motivation is cost cutting and we can often cut the monthly water budget by over 25%. Our primary objective is to let the world of business offices know how we can help.
Even at this early stage, we have written our first 3 contracts, and more quotes are in the pipeline waiting for approval. One of the quotes is to a multi-campus educational institution."
"We have an arrangement with a national finance company that gives us a cash payment on opening of a contract, and also provides us with ownership of the equipment when the original term is amortized. We then can look forward to a residual-style income from the equipment, which has a life expectancy far beyond the lease," continues English.
11/18 PR
Purio Accepts West African Leaders' Invitation to Present Technology
Daryl English, President of Purio, says, "Developing countries are well aware that a most important factor influencing their populations' ability to prosper is good health. Clean, safe water is at the top of their list of priorities in that quest, and that's where Purio comes in. Our technology is designed to be versatile so that it can be deployed to either drinking water purification, or wastewater treatment. That versatility, along with the energy efficiency, offers a combination of benefits that are very attractive. We look forward to this meeting as a first step toward the development of productive and long-lasting relationships in West Africa so that together, we may accomplish this all-important task."
Morning ES and all, looking for PURO t pick up some steam this week. Would notbe suprised if we don't hear something on the following real soon.
SHARE STRUCTURE:
----------------
Authorized: 375,000,000
Outstanding: 55,234,603 (As of 12/5/08)
Free Trading: 27,500,000
Restricted: 27,734,603
09/09 PR
Purio Receives Letter of Intent to Install Water and Waste-Water Works
"Purio will participate in the operation of the water utilities services as a utility company, thereby creating a residual income stream for our company. A project like this, fully on-line, would generate annual revenues to the company of approximately $350,000."
11/19 PR
Purio's Direct Water Distribution Division Writes First Contracts
Daryl English, President of Purio, says, "We have now officially set sail into the marketplace. Businesses are motivated in many ways to take action and upgrade their office water service from bottle-style dispensers to modern point-of-use (POU) water purifiers and totally do away with bottled water delivery. In today's economy, the first motivation is cost cutting and we can often cut the monthly water budget by over 25%. Our primary objective is to let the world of business offices know how we can help.
Even at this early stage, we have written our first 3 contracts, and more quotes are in the pipeline waiting for approval. One of the quotes is to a multi-campus educational institution."
"We have an arrangement with a national finance company that gives us a cash payment on opening of a contract, and also provides us with ownership of the equipment when the original term is amortized. We then can look forward to a residual-style income from the equipment, which has a life expectancy far beyond the lease," continues English.
11/18 PR
Purio Accepts West African Leaders' Invitation to Present Technology
Daryl English, President of Purio, says, "Developing countries are well aware that a most important factor influencing their populations' ability to prosper is good health. Clean, safe water is at the top of their list of priorities in that quest, and that's where Purio comes in. Our technology is designed to be versatile so that it can be deployed to either drinking water purification, or wastewater treatment. That versatility, along with the energy efficiency, offers a combination of benefits that are very attractive. We look forward to this meeting as a first step toward the development of productive and long-lasting relationships in West Africa so that together, we may accomplish this all-important task."