Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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