Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21
Dow Stock Market Trend Forecast 2021 - 3rd Apr 21
Gold Price Just Can’t Seem to Breakout - 3rd Apr 21
Stocks, Gold and the Troubling Yields - 3rd Apr 21
What can you buy with cryptocurrencies?- 3rd Apr 21
What a Long and Not so Strange Trip it’s Been for the Gold Mining Stocks - 2nd Apr 21
WD My Book DUO 28tb Unboxing - What Drives Inside the Enclosure, Reds or Blues Review - 2nd Apr 21
Markets, Mayhem and Elliott Waves - 2nd Apr 21
Gold And US Dollar Hegemony - 2nd Apr 21
What Biden’s Big Infrastructure Push Means for Silver Price - 2nd Apr 21
Stock Market Support Near $14,358 On Transportation Index Suggests Rally Will Continue - 2nd Apr 21
Crypto Mine Bitcoin With Your Gaming PC - How Much Profit after 3 Weeks with NiceHash, RTX 3080 GPU - 2nd Apr 21
UK Lockdowns Ending As Europe Continues to Die, Sweet Child O' Mine 2021 Post Pandemic Hope - 2nd Apr 21
A Climbing USDX Means Gold Investors Should Care - 1st Apr 21
How To Spot Market Boom and Bust Cycles - 1st Apr 21
What Could Slay the Stock & Gold Bulls - 1st Apr 21
Precious Metals Mining Stocks Setting Up For A Breakout Rally – Wait For Confirmation - 1st Apr 21
Fed: “We’re Not Going to Take This Punchbowl Away” - 1st Apr 21
Mining Bitcoin On My Desktop PC For 3 Weeks - How Much Crypto Profit Using RTX 3080 on NiceHash - 31st Mar 21
INFLATION - Wage Slaves vs Gold Owners - 31st Mar 21
Why It‘s Reasonable to Be Bullish Stocks and Gold - 31st Mar 21
How To Be Eligible For An E-Transfer Payday Loan? - 31st Mar 21
eXcentral Review – Trade CFDs with a Customer-Centric Broker - 31st Mar 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Profit From the Global Thirst for Clean Water

Stock-Markets / Water Sector Jul 28, 2010 - 08:29 AM GMT

By: Tony_Sagami

Stock-Markets

Best Financial Markets Analysis ArticleAbout the same time I was traipsing around Singapore last month, around 14,000 of the world’s top business, academic, and government experts from 85 countries gathered in Singapore to learn the newest water-technology developments at the Singapore International Water Week 2010 conference.

The global economy may be filled with uncertainly, but the world’s thirst for water is growing like mad. FACT: A total of $2.8 BILLION worth of water infrastructure deals were concluded at the Singapore conference.


All those billions are being spent for one reason: Clean drinking water is in short supply. It is estimated that the lack of pure water is the single greatest killer in the world: Four children die each minute from illness caused by a lack of drinking water.

The problem is not that the world is running out of water. There is exactly the same amount of water today as there was a million years ago, but a soaring global population and groundwater pollution is creating an acute shortage.

Only 2.5% of the world’s water is fit for human consumption and two-thirds of that is locked away in icecaps and glaciers. This percentage has been fixed since the last ice age.

Water is not like gold or oil where a new discovery will suddenly increase the supply and there is no substitute for water.

Clean drinking water is in short supply, thus a potentially valuable commodity.
Clean drinking water is in short supply, thus a potentially valuable commodity.

According to the International Water Management Institute (IWMI), one-third of the world’s population is short of water. In fact, water is expected to become so scarce in the future that the vice president of the World Bank warned that “the wars of the next century will be about water.”

Yikes!

Clearly, there is some investment opportunity buried in that need for clean drinking water. The easiest way, as usual, is through exchange traded funds. There are four that specialize in water-related stocks.

  • First Trust ISE Water Index Fund (FIW) has a 61.9% weighting in industrials; 22.4% in utilities.
  • Claymore S&P Global Water Index ETF (CGW) has a 43.9% weighting in industrials; 32.5% in utilities.
  • PowerShares Water Resources Portfolio (PHO) is the largest water ETF, with $1.04 billion in assets; 84.8% industrials; 12.3% utilities.
  • PowerShares Global Water (PIO) has a 50.5% weighting in industrials; 32.7% weighting in utilities.

All have similar goals, so it pretty much depends on whether you want to invest in the water delivery companies (utilities) themselves or companies that are creating the hardware and technology to clean up the water.

Seven Unsettling Water Factoids:

  1. The average American lets eight liters of water go down the sink while brushing their teeth. Americans use 25 times the amount of water on a daily basis than emerging country counterparts. Two-thirds of the world’s fresh water is used to irrigate crops. Americans drench their gardens with seven billion gallons of water a day. 80% of China’s rivers are too polluted to support fish life. 1.1 billion people globally have no access to clean water.
  2. China has 21% of the world’s population, but only 7% of the water.

If you’re more of an individual stock investor, you should take a look at Singapore-based Hyflux, one of the most exciting (but high-risk) water companies that I’ve found. Hyflux has developed advanced membrane technology that has modernized the water purification industry and is recognized as one of the world’s leading water treatment companies with operations in Singapore, China, India, and Dubai.

Hyflux was the first water treatment company to be listed on the Singapore stock exchange in 2001 and was added to the Straits Times Index — the Singapore equivalent of the Dow Jones — in March of 2005.

Hyflux’s secret weapon is its revolutionary seawater desalination technology. Desalination is the process that removes salt, minerals, and impurities from seawater to produce potable drinking water.

Hyflux’s patented reverse osmosis system uses permeable membranes to filter out dissolved material or fine solids.

Hyflux’s SingSpring desalination plant is Singapore’s first seawater desalination plant and delivers 10% of Singapore’s water needs. The plant produces 136,380 meters of clean drinking water a day and was recently awarded the Desalination Plant of the Year by Global Water Intelligence for its contribution to the international desalination industry.

Water purification and treatment facilities are the wave of the future.
Water purification and treatment facilities are the wave of the future.

In fact, the Singapore government is so enamored with the SingSpring plant that its government investment arm, Temasek Holdings, recently purchased a 50% stake in it. That tells you volumes about how central desalinization is to the future of Singapore.

Hyflux isn’t the only company in Singapore working on new water purification technologies. Singapore is already home to more than 50 water-engineering companies with an emphasis on innovation, research and development. They include GE, Siemens and Black & Veatch Corp. of the U.S.; Delft Hydraulics of the Netherlands; and Nitto Denko of Japan.

At least as important, Singapore has two world-class research universities and 12 research institutes dedicated to water engineering, employing hundreds of scientists.

It also touts its strategic location in Asia where India, China and Vietnam invest heavily. “A lack of clean water and the destruction of the environment are acute problems in Asia, a region home to almost three billion people,” according to Singapore’s Economic Development Board. “This presents vast opportunities.”

Hyflux does trade on the over-the-counter U.S. pink sheets market under the ticker HYFXF.PK and has very thin trading volume, but is actively traded on the Singapore stock exchange as 600.SI.

Don’t rush out and buy Hyflux tomorrow. The desalinization opportunity is a long, multi-decade story, so you will have plenty of time to wait for it to go on sale.

But make no mistake, water is going to be one of the most powerful and most lucrative investment trends you will see in your lifetime and Asian water companies, like Hyflux, should be some of the biggest winners.

Best wishes,

Tony

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit http://www.uncommonwisdomdaily.com.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules