Eventually, almost everyone who writes online about stocks and
investments gets around to writing their "water article." Yes, water is
essential for life and access to clean water is going to be an
increasingly significant issue for many people in the coming decades.
That doesn't automatically make water a great investment, though, as
investors have frequently bid these stocks up to unreasonable levels
only to see gravity take hold once again.
And that is the problem today at
Aqua America (NYSE:
WTR).
The company's decision to rationalize its holdings (selling off
businesses in less-promising areas like Maine) was a wise one, and the
company's venture with
Penn Virginia Resource Partners (NYSE:
PVR)
to bring water supplies to energy companies in the Marcellus is a good
growth opportunity outside of the regulated residential water business.
Nevertheless, this is a stock priced for virtual perfection today.
Please continue here:
http://stocks.investopedia.com/stock-analysis/2012/Water-May-Be-Essential-But-That-Doesnt-Make-Aqua-America-Cheap-WTR-PVR-RRC-AWK-AWR0802.aspx
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