Five Plays on Water


Tony Daltorio Image Tony Daltorio Editor, Investors Alley Premium Digest

Its five “growth centers” — transport, treatment, dewatering, analytics and applied water systems — cover every stage of the water cycle.

Emerging markets – where much of the water stress lies – make up over 20% of its business. It is involved in the world’s largest water reclamation and reuse installation, located in Kuwait.

And in Shanghai, a water treatment plant is disinfecting the water using ultra-violet light technology from the company’s Wedeco unit. A similar system has also been installed in New York and Chicago.

Xylem also provides membrane-based desalination technology and components and has done so since 1975. And for about 25 years, the company has provided pre-treatment systems to improve the performance of reverse-osmosis membranes.

Another two diversified companies worth a look are Pentair PLC (PNR) and Roper Technologies (ROP). Pentair is involved in water pumps and systems, advanced water filtration and desalination, and flood water and wastewater systems. Roper has divisions in fluid handling and data collection/metering technology.

Famed international and commodities investor Jim Rogers said in an interview with marketing agency Sinclair & Co., “Water is the single most important determination of civilization.” He’s right. History shows that without water, no civilization–no matter how advanced–can survive for long.

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