Veolia: Environmental Value

05/10/2016 10:00 am EST


Keith Kohl

, Energy & Capital

The World Economic Forum recently assessed all global risks and the top concern wasn't terrorism, weapons, financial crisis, social instability or even disease. The #1 global concern right now is water, notes Keith Kohl, editor of Energy & Capital.

According to the UN, by 2025, two-thirds of the world's population will be experiencing water “stress conditions.”

And one of the biggest contributors to these “stress conditions” is aging infrastructure — the aching bones of the water systems.

Even here in the US, the water infrastructure is ancient. The median age of the water systems in America is 78 years.

This leads to some 240,000 water main breaks a year and 1.7 trillion gallons of water lost due to broken and leaky pipes. And that's just in America. Worldwide, the problem is way worse.

Veolia Environment (VEOEY) is a France-based environmental management service. Through its subsidiary, Veolia Water, the company is the world's largest supplier of water services.

Veolia handles water and wastewater services for clients in the public sector and in various industries. The company also creates and constructs the required technology and infrastructure.

Through these businesses, it provides drinking water to 96 million people, treats wastewater for 60 million people around the world, and processes nearly 46.4 million metric tons of waste each year.

Veolia Water also provides several additional technologies and services, including desalination. The company is currently the world's largest desalination operator, controlling about 15% of Earth's total desalination capacity.

Shares of VEOEY have generally traded horizontally since summer 2015. However, as the global water crisis spreads, I believe VEOEY will start to march higher over the next several months.

We're going to add Veolia to our Energy and Capital water portfolio. I feel comfortable recommending buying it up to $24.00.

Subscribe to Energy & Capital here…

By Keith Kohl, Editor of Energy & Capital

More from

A Consulting Company in Water?

Parnassus: Investing with "Values"

Stericycle: Expanding Beyond Medical Waste

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STOCKS

Keyword Image
Retail Sector is a Short
14 hours ago

The December retail sales report was a disaster, notes Landon Whaley, who recommends shorting the SP...

Keyword Image
2 Ways to Bet on BDCs
15 hours ago

Business development companies (BDCs) lend money to private companies in the form of fixed and varia...