Mitä vesi osakkeita on olemassa ja kuinka niitä ostetaan?
Hei,
Ihan foorumin tason ylläpitämisen mielessä olisi @Jarmoxxx hienoa, jos voisit enemmän kertoa Tallinnan Vedestä ja näkemyksestäsi siitä. Osinko on harvoin yksin hyvä syy ostaa osaketta.
5 Likes
Hei, jokainen voi itse lukea yhtiöstä, laitoin yhden esimerkin.
1 Like
American States Water voisi mennä ainakin nimestä päätellen tähän kategoriaan. Yhtiötä en tunne, mutta osinkoa yhtiö on kasvattanut vaivaiset 64 vuotta putkeen, se on pitkä aika se. On siellä firman sisällä ainakin asioita oikein tehty. Tämä tosin saattaa näkyä hinnassakin; 2,77mrd$ markkina-arvolla ja vuoden 2018 63,8M$ nettotuloksella p/e yli 40. Sitten esim P/b 15 ja tämänhetkinen efektiivinen osinkotuotto 1,4%. Eli osakkeessa saattaa olla pieni vesilisä, tai sitten nämä on ihan normi jenkkikertoimia.
Olisiko ollut Intelligent Investor, jossa puhuttiin näistä USAn vesiosakkeista, jotka ovat luonnollisia monopoleja. Luulisin, että tuo firma kuuluu siihen kastiin ja tämä on syynä noin korkeisiin kertoimiin. Eli kyse äärimmäisen defensiivisestä osakkeesta, jonka tuotto noilla kertoimilla onkin sitten varmaan jo lähempänä valtionlainan tuottoa. Tästä syystä voisi kuvitella, että tuo viime vuosien hurja nousu on pitkälti korkoympäristön syytä, eli tällaisista osakkeista on haettu turvallista tuottoa, kun korot ovat niin matalalla. Siten voisi toisaalta luulla, että nämä olisivat aika herkkiä korkoympäristön muutoksille. Pelkkää mutuilua siis, enkä ole tarkemmin perehtynyt. 
1 Like
En ole perehtynyt käytännön lainkaan näihin USAn vesiosakkeisiin, mutta mutuilusi kuulostaa loogiselta. Tämmöistä omaa monopoliasemaa tai ylipäätänsä liiketoiminnan ympärillä olevia vallihautoja ajaa 64 vuoden osingonkorotuksen lisäksi se, että yhtiö tekee suhteellisen korkeaa oman pääoman tuottoa, 35%. Näistä tekijöistä voisi nopeasti päätellä, ettei kilpailijoilla ole ollut juurikaan asiaa yhtiön reviirille ja/tai yhtiö on osannut vielä laajentua kilpailuetujen sisällä. Voisin kans ostaa sen näkemyksen, että matalat korot ovat saaneet sijoittajat etsimään turvasatamaa tämänkaltaisista mahdollisesti hyvin defensiivisistä ja laadukkaista, vallihautoja omaavista yhtiöistä. Päälle vielä yhden megatrendin aallonharjalla ratsastus.
1 Like
I found an article from Sijoitustieto (Investment Data) on the subject, written a year ago: Huoltotyö - Production lynxbroker.fi
It’s a long text and I admit I didn’t have time to read it all, but the article generally touches upon the industry and how one can invest in it, introduces different companies, and a bit of everything in between. The writer seems quite knowledgeable about the subject. Companies in the sector can operate in areas such as (water) technology, wastewater management, water treatment, water disinfection or purification, and irrigation systems, so there are all kinds of companies to be found.
I hesitated for a moment whether to bring this thread to the surface, as it is truly a blemish on the forum, but let’s try this one time. Nevertheless, it’s generally an interesting and probably necessary industry, and trends are certainly moving it forward. If this thread doesn’t gain momentum now, then it can be locked for all I care; someone can then open a new thread on the topic with a “slightly” better opening if they wish. It would be nice to hear from someone more familiar with the industry/companies.
1 Like
I have to agree, this thread is quite bad (!), but water as an investment is undeniably interesting.
I once attended a future seminar organized by my local university, where the then US Ambassador to Finland, Bruce Oreck, spoke. His entire presentation revolved around Finnish nature and especially clean water, claiming it would be Finland’s greatest competitive advantage in the future. Perhaps the purpose of the presentation was more to emphasize the fact that the biggest and most productive innovations are often simple and already right in front of us – that we don’t always need to reinvent the wheel. But Oreck seemed serious about water and the purity of nature when he said that it is Finland’s most important export product for the future. And as I recall, he wasn’t talking about shipping bottled water or ice, but about technology related to clean water and water sufficiency.
Why couldn’t this be the case? Cleantech, perhaps a concept somewhat overshadowed by sustainable development, circular economy, and similar ideas, will certainly be a significant area in the future. The problem so far has probably been that those who would most desperately need it have not had the opportunity to invest in it, meaning projects have mainly been implemented through various development aid initiatives and similar channels.
I remember encountering thematic ETFs that invest in clean water and related businesses. I believe OP, among others, even had a fund related to this. I have no idea about their return potential or history, but I would gladly hear more about them. This sector could very well be one where, when the stock market bubble eventually bursts, these become potential investment targets, if they aren’t already.
3 Likes
Is this thread about everything from soft drinks to pipe manufacturers, or perhaps water distribution monopolies after all?
2 Likes
This will become a classic on the Inderes forum, let’s wait a couple more years 
2 Likes
Now that I’ve started looking into this a bit more out of interest, my expertise isn’t sufficient for investing in individual American companies in this sector. It would turn into a lottery, even though the share price curves are quite stable.
In addition to that expensive fund, OP also offers:
L&G Clean Water UCITS ETF,
iSHARES Global Water UCITS ETF, and
Lyxor World Water (DR) UCITS ETF
Their fees range from 0.49-0.65, which is already a more reasonable figure. These would certainly give some exposure to the sector with lighter due diligence.
6 Likes
Alright, in honor of a rainy Sunday, let’s join the water_stock discussion!
I see this sector as interesting and promising(?) for the future. So:
AS Tallinna Vesi (TVEAT)
Drinking water and wastewater treatment for just under 500,000 residents (Tallinna Vesi | Company — Nasdaq Baltic). Privatized in the early 2000s and listed on the Tallinn stock exchange in 2005 (see previous link). 20M Series A shares and one Series B share (Share - Tallinnavesi)
Course development and key figures (Tallinna Vesi | Reports — Nasdaq Baltic)
Ownership distribution
Q1 and dividend history
That’s the company in a nutshell. I, the undersigned, have been eyeing water stocks for some time and have made a small list of interesting companies (e.g., Veolia Environnement SA and Northwest Pipe Company). I would welcome more insights from fellow forum members on water and its future.
6 Likes
Sure, there are plenty of water utilities in the US. However, I’m not convinced that it would be wise to buy them at current prices. Price tags have totally gotten out of hand during Corona. Of course, the business is defensive and monopolistic, and there seems to be some scalability as well. However, when the core business grows very slowly and you have to pay almost 40 times earnings for it, no thanks. A few percent earnings yield and a one percent dividend doesn’t really sound like a margin of safety in this case.
- [American Water Works (AWK)]
- [Aqua America (WTR)]
- [Pentair (PNR)]
- [American States Water (AWR)]
- [Watts Water Technologies (WTS)]
- [Itron (ITRI)]
- [California Water Service Group (CWT)]
- [SJW Group (SJW)]
- [Evoqua Water Technologies (AQUA)]
- [Badger Meter (BMI)]
- [Middlesex Water Co (MSEX)]
- [Connecticut Water Service (CTWS)]
- [York Water Co (YORW)]
- [AquaVenture Holdings (WAAS)]
- [Primo Water (PRMW)]
I found these quite quickly with Google. Of course, a quick glance shows that some of these companies do much more than just water purification and distribution.
4 Likes
I own the iShs Glb Water fund, which invests globally in water companies. Clean water may be scarce in many places in the future.
2 Likes
Let’s revive this legendary thread because we’ll be needing water soon! Unfortunately, I don’t have any stock ideas to mention at the moment.
A couple of weeks ago, I wrote briefly about the topic in the Lamor thread:
And this week, The Guardian published a proper FUD article, so let’s take a few highlights from it here.
As I wrote earlier, there will potentially be impacts on the following areas:
- Energy (cooling nuclear power plants / hydropower)
- Agriculture
- Clean water
Energy
During last summer’s drought, nuclear power plants had to be powered down because the rivers didn’t have enough water flow for cooling, and coal shipments weren’t moving because there wasn’t enough water for barges.
In Germany, shallow waters on the Rhine are already disrupting barge traffic, forcing boats heading up into central Europe to load at half capacity
In Italy, the Po River is very dry and the adequacy of hydropower is at risk:
“The problem of drought is serious,” he told Corriere della Sera. “We’ve only had half the average amount of snow. We found ourselves with waterways, lakes and reservoirs in a very critical state, and hydroelectric basins in extreme difficulty.”
Agriculture
At least France and Spain have started to pay attention to irrigation water used in agriculture.
Among the [French] government’s plans are modernising agricultural irrigation, which represents up to 80% of consumption in summer, boosting wastewater recycling, and reducing loss due to leakage.
All of Spain has been in drought since January 2022, but water supplies in Catalonia have fallen so low that authorities this week introduced laws including a 40% reduction in water used for agriculture, a 15% reduction for industrial uses, and a cut in the average daily supply per inhabitant from 250 litres to 230 litres.
Clean water
As seen from the quotes above, the situation in Western and Southern Europe is already becoming serious due to the prolonged drought.
https://twitter.com/Hydrology_IRPI/status/1633192460712017924
For this reason, water reserves are depleting, and at the same time, significant amounts of clean water are being wasted due to poor infrastructure. For example, Reuters wrote last year that in parts of Italy, pipes leak so badly that up to 42% of the water goes to waste!
Our pipes lose on average 42% of the water they carry.
5 Likes
This is indeed a strange paradox. Often, it is precisely in regions suffering from drought and a lack of clean water that water is wasted because of poor infrastructure and water-intensive agriculture.
Then there is Finland, the land of a thousand lakes, where a pipe leak in a small village was one of the most followed news stories of the summer for an entire month.
9 Likes
Over the weekend, I did some reading on the subject, and it seems that major investments are now underway in Italy as well. However, I haven’t managed to find information on which entities are carrying out this work.
More information via the link (hopefully, it leads to the correct search results).
https://www.italiadomani.gov.it/content/sogei-ng/it/en/Interventi/investimenti/ricerca-avanzata.html?orderby=%40jcr%3Ascore&sort=desc&resultsOffset=0&fulltext=water
Additionally, it appears that the drought in Europe eased slightly last week.
https://twitter.com/Hydrology_IRPI/status/1635196946028855296
2 Likes
In the meantime, here is one idea I’ve been reading about:
Veolia Environnement, because it is French and seems to operate in today’s hot sectors: energy efficiency for buildings, as well as water distribution and related technologies.
I mentioned the French aspect because Macron gave a speech a couple of weeks ago where he said:
The nation needs to do regarding water as has been done in the field of energy, a form of sobriety plan. That is to say that we must all — citizens, industrialists, services, local authorities, farmers — pay attention to this resource which is becoming rare. This is what I said at the end of the summer, it is the end of abundance,
About 40% of Veolia’s revenue comes from water. A large part of that is municipal water distribution, where France and Spain account for a significant portion.
As you can see from the image heading, volume is an important factor in the water business. So, if France (and also drought-stricken Spain) starts paying attention to water consumption => volume drops, and along with it, revenue drops.
Water technology on its own would be interesting, but I think I’ll pass on Veolia as a whole.
1 Like
I personally hold that iShs Glb Water ETF; it pays a small dividend and is up +37.5%.
1 Like