Usually when the talk shifts to resources where demand outstrips supply, the focus is oil or precious metals, but there is another resource that is finding its way into these discussions - clean water.

Two-thirds of the Earth's surface is covered by water, but only a fraction of that is potable. While desalinization efforts may help satisfy some of the demand, increasing population and pollution has made water a very fragile and important resource. (Discover ways to invest in this scarce resource, check out Water: The Ultimate Commodity.)

Another factor to consider is the high cost to tap sub-surface water supplies, and to create the infrastructure necessary to transport it to remote areas. Unfortunately, this makes accessing and distributing water quite difficult for struggling economies. Companies that treat waste water are also important because they play a major role in keeping our environment clean and preventing transmittable diseases. Investors may get in on the demand for clean water by investing in this resource.

Water Stocks to Know
The following is a list of larger, better known public companies that provide water services or wastewater treatment:





Company


Market Capitalization


American Water Works Company, Inc. (AWK)


5.29B


Aqua America Inc. (WTR)


2.94B


California Water Service Group (CWT)


717.68M


American States Water Company (AWR)


613.08M


SJW Corp. (SJW)


406.90M

Data as of 9/28/2011







Bottom Line
The growing world population means that companies that process, deliver and/or transport water will always be in high demand. The stocks covered here are definitely worthy of follow up research for investors looking to capitalize on the attractive long term fundamentals that exist with water.

For further readings, check out Taking Global Macro Trends To The Bank.



Filed Under:
Tickers in this Article: AWK, WTR, CWT, AWR, SJW

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