February 11, 2011
Aqua America, Inc. (WTR)
Written By Dr. Stephen Leeb
From The Complete Investor: “Aqua America, Inc. (WTR), a regulated water and wastewater utility serving approximately three million people in 14 states, was hands down Income Portfolio’s best-performing utility in 2010, with total returns topping 32%. Its share price has continued to move higher so far in 2011, reflecting not only an improving operational environment but also the utility’s above-average growth, with earnings rising and margins improving. The utility’s long-term strategy of growing aggressively through acquisitions also helped win over investors: during the last 10 years, Aqua America participated in about 200 acquisitions and growth ventures, resulting in average annual customer growth of 5.7% vs. around 1% a year for most utilities. While Aqua America’s P/E is higher than that of most utilities, and despite its below-average yield, we still think the utility is attractively priced, with its higher valuation reflecting its higher growth. And given its near-monopoly status within its markets, the utility should easily maintain above-average growth for some time to come.”
Stephen Leeb, PhD., The Complete Investor, February 2011
I have a web site where I research stocks under five dollars. I have many years of experience with these type of stocks. I would like to suggest a exchange traded fund for those investors that would prefer investing in water resource stocks though an exchange traded fund that invests in stocks related to water resources rather than own individual stocks. PowerShares Global Water symbol (PIO)