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Recession slowing water investment to a drip

Posted by: Maven on April 16, 2009 at 7:54 am

From Reuters News Business & Finance section:

Water scarcity means big growth for companies that purify, transport, and distribute the world’s most essential resource, but a global recession that has halted new projects and put off price hikes means water investors will have to wait for the boom years.

Water, cheap and indispensable, has long been prized as a stable investment in both good and bad times. But as the population grows, urbanization tightens access to clean water and climate change promises more droughts, calls to upgrade the nation’s crumbling infrastructure have mounted, and companies that make pipes, filters and other products that help manage water supplies have taken on a new shine as growth vehicles.

“There are tremendous needs in this country to replace aging infrastructure, especially water infrastructure, and now there is tremendous money able to be put toward those types of projects,” said BB&T Capital Markets analyst Kevin Maczka, though he cautioned that investors shouldn’t expect a “windfall” for water stocks any time soon.

“Over a couple of years that will be a real investable theme,” Maczka said.

Read more from Reuters News by clicking here.

April 16, 2009 · Filed Under Investing in water

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