Wednesday, October 20, 2010

A Water Stock

Water, water everywhere, but not a drop to drink. If you are in the middle of an ocean, that's probably the case because sea water is not potable water.The importance of fresh water needs little explanation. In short, we can't live without it.

Only 3% of the world's water is fresh. Each day, more than one billion people do not have enough fresh water.

China has a population of 1.3 billion which is about one-fifth of the world's population. It has, however, only about 7% of the world's fresh water.

Industrial activities in the country has made the situation worse. Many rivers are now polluted with chemical waste. There is a heavy price to pay if China does not take steps to quickly reverse the deteriorating atmosphere.

Every industry, be it pharmaceutical, electronics, construction, food and beverages, etc. need fresh water.

Luckily, fresh water can now be created by converting salt water to fresh water by a process called: Desalination. The company which has this technology is practically sitting on a goldmine.

I have been hunting high and low for a safe company that has the potential to become great, to invest. After much time and effort, I finally short-listed a few. Among them, there is one company which I like most. This company is a pioneer in converting waste water and salt water into fresh water. It is a leading provider of integrated water management and environmental solutions with operations and projects in Singapore, Southeast Asia, China, India, Algeria, the Middle East and North Africa.

Here's some info about the company from a source which is as follows:

From 2004 to 2009. top-line growth was +594%. Earnings rose nearly +250%. From 2002 to 2009, the stock has returned 826%. The stock is listed in the Singapore Stock Exchange.

Going forward, I think there are huge potentials for this company which has won many awards and is among the Forbes Best of 200. The company excels in special filters used in desalinization. In 2008, it was selected as the supplier for the largest plant in Algeria.

Some of you may know the name of the stock. But for those who do not know but wish to invest in the stock, they can send me an e-mail requesting for the name of the stock.

My e-mail address is at the top right-hand side of this page.

Happy investing.