Tommy Cook, pump salesman and president of Pumps of Houston, was so confident in the solids-handling performance of a new wastewater pump that he...
www.Water-Stocks.com (WS), an investor and industry news portal for the water sector, presents an online audio interview with William Brennan, managing director & senior portfolio manager at Boenning & Scattergood, to discuss the out-performance of water stocks compared to other industries. "As a sector performance, water has consistently outperformed every sector in the stock market over the last 15 years. The only time that it has not done this was during the bull run from 1994-1999 when tech led the way," Brennan said. The significance of investing in the water industry is that it has historically been seen as a defensive play during times of poor market performance due to its inelastic demand.
Investment opportunities in underdeveloped countries are increasing, with compelling potential being recognized in China (www.China-AsiaStocks.com). "China in particular has allocated approximately $242 million, an increase of 11%, for efforts to provide the entire Chinese population with access to clean water as quickly as possible. Separately, the Hunan and Guangdong provinces of China recently announced a plan to construct waste water treatment plants over the next two decades, with projects to divert water from the Yangtze river to drought stricken communities expected to cost approximately $1.6 billion over the next five years," Brennan explained.
Homeland Security issues (www.HomelandDefenseStocks.com) have surrounded the water industry most notably since 9/11, however as Brennan described, the water infrastructure is not necessarily at risk because it would take thousands of gallons of poison to reach contamination levels in the reservoirs. The focus instead relates to concerns regarding the point of use and more specifically, building infrastructures, which are potentially at risk for water contamination from the point of entry coming from a municipal water system into a specific building.
Overall Brennan described the water market as a sector that offers consistent and evolving opportunities for investment returns, "With the growth rates accelerating as we embark upon the infrastructure build out globally and the infrastructure re-build locally here in the United States, we see nothing but great opportunities for the water business for investors."
The online audio interview is available at: http://investorideas.com/Water-Stocks/audio/default.asp