From the new lows list, it's not a good day for some water stocks. I'll take a starting few shares of [t]WTR[/t] now. Typical of the sector - it's a s-l-o-w grower; it increases its dividend every year; the div. yield isn't that great. For me, that's okay - I've got no problem with any of this. I'm still holding [t]MWA[/t] (ouch), [t]SBS[/t], and [t]CWT[/t]
========================================================
I have bent down to pick up many cigar butts, but this is the first time I've scooped up bath water that's being tossed out: lol
I'll go for a few shares of Basin Water [t]BWTR[/t].
Here you have a stock on the new lows list selling below book value; at roughly twice cash, with very little ltd; a company with not much public history; and a company that's only rarely been profitable.
The co. pres. said last night(http://biz.yahoo.com/bw/080506/20080506006724.html?.v=1) they've now restructured their sales force, that it takes a long time before deals are actually closed in this industry, and so be patient. So of course, today most everybody is exiting the stock. -g-
If the company actually has something to sell and they can make sales and/or if the fashion of the market turns again to water/water infrastructure/potable water, then it's possible, maybe likely, that if this company hasn't gone through its cash by then, that the stock could revert to its previous enthusiastic stock prices (a double or triple here perhaps within the next three-four years...maybe.) |
