Best Water Stocks on the TSX

Water Stocks TSX

The TSX Venture Exchange has not reviewed this release and does not accept responsibility for the accuracy or the adequacy of this release. Forward-looking statements are subject to risks, uncertainties and other factors which could cause Current Water Technologies Inc. and its results to differ materially from expectations.

Established as an operating division of Current Water Technologies Inc. (“Current Water Technologies”), Pumptronic continues to serve as an integrated manufacturer of pumping stations specializing in custom design and automation, and its common shares are traded on the Tier I Wills TSX Venture Exchange under the symbol “WATR.”. Alkaline Water Co., Inc. was founded in June 6th, 2011 by Richard A. Wright and is headquartered in Scottsdale, AZ. Current Water Technology is a technology company that uses its patented and proprietary electrochemical technology to treat wastewater, desalination water and drinking water contaminated with metals, nutrients, nitrates and ammonia related to mining, metal processing, chemical, agricultural and municipal waste management.

Artesian Water Company, its principal subsidiary, delivers 7.3 billion gallons of water annually through 1,301 miles of water pipes to more than 300,000 people. Through its subsidiary, the Golden State Water Company, the company provides water services to 258,000 customers in 75 communities in 10 counties in northern, coastal and southern California. The company also distributes electricity to more than 24,000 customers in the city of Big Bear and nearby areas in San Bernardino County, California.

The company’s offerings support energy-efficient technologies for energy storage, power generation, distribution and conversion. Through its subsidiary, American State Utility Services Inc., the company provides water and wastewater management services to military bases across the nation under a 50-year privatization agreement with the United States. The ISHARE Global Water (UCIT) ETF offers a broad exposure to water-related companies.

The iShares Global Water UCIT ETF invests in the 50 largest global water companies and aims to track their performance. This means that the fund has stable water stocks and fewer risks due to its diversification.

While water ETFs are the best way for private investors to get involved in the wider water sector, individual water stocks are riskier, says Dan Deming, managing director of Chicago-based KKM Financial LLC. In a curious reversal, Deming said that individual water companies pose a higher risk than investments in water funds because of the reduced market value of water. His recommendation to investors is to limit the holdings of water ETFs to 10 per cent of the total portfolio.

While water is not an asset class, it is held in several asset classes, including staples, consumer goods, infrastructure, information technology, utilities, healthcare, and industry. For example, two of the companies holding the five water ETFs in North America traded Xylem Inc. (Danaher Corp.) Danaher is classified as an industrial stock because it manufactures water treatment plants. Danaher can also be considered a healthcare company because it manufactures technologies that treat water for medical applications.

Large quantities of water, ice and steam are used to cool and heat industries and households. Much of the long-distance trade in raw materials such as oil and natural gas and finished products is carried by boat across seas, rivers, lakes and canals. Fisheries, salt and freshwater waters are important sources of food in many parts of the world. 

Water is a coveted commodity, and investing in water resources is a way to diversify your portfolio and lead to life-changing prosperity. Only 1% of the world’s freshwater is accessible, and just as much of it is in glaciers, so only 0.007% is available to the billions of people and animals on planet Earth.

Water is a valuable commodity, and when governments fail to provide people with clean water, they have to ask companies to help solve the problem, and that is where your investment comes in. Investing in water supplies is a way to support companies trying to solve the looming water crisis, and could prove to be a good investment. Burry bought water rights, invested in water-rich farmland, and invested in a water utility.

There is not a single crystal ball, so it is impossible to know with certainty where water prices will go in 2021. Mergers and acquisitions (M & A) could also affect the share price of water stocks. Buying Canadian water stocks Canadian water stocks is not as easy as it is for US investors.

For example, if a company makes a bid at a massive premium, it can leak in to others. A bid for a water company can reset valuations attributed to the industry. One of the fastest growing topics in M & A has been the involvement of private equity in the development of water resources in recent years.

This top-down approach is a way for individual investors to position their portfolios in order to access new, high-growth sectors as part of a broader balanced investment strategy.

In recent years, the view of water has changed dramatically due to the scarcity in many parts of the world. The only viable way to finance the replacement of ailing infrastructure in developing countries with new infrastructure in these areas is to assign water a realistic value, and while this may not be great for consumers “monthly water bills”, it offers an excellent opportunity for investors to look at water supplies. As we have already said, the global water sector is poorly defined, making it difficult for discerning institutional investors to find a clean way to engage in the sector.

Veolia has built over the past 20 years more than 250 water and wastewater treatment plants in the Asia-Pacific region, making it one of the company’s largest markets for water resources. In 2016 Veolia extended its contract with Milwaukee Metropolitan Sewage District for ongoing wastewater collection and treatment.

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