Kevin is well-versed on all things commodities and he recently
hunted down a few small cap companies I think you will find very
Twelve years ago, at the infancy of the current bull market in
gold, a small group of folks started buying up gold and gold
They didn't ring a bell or tell their friends. They probably
felt a little foolish doing so. They might have felt a little
Gold had been in a two-decade bear market.
Today, there's a commodity that's commonly used, extremely cheap
and arguably in a 50 or 60 year bear market.
It's a commodity that people probably don't even think about as
very investment-worthy - but it's completely vital to the modern
world. Significantly more important than gold even.
And I'm going to tell you how to invest in three companies
involved in this commodity today that should see strong gains in
the coming years, as well as solid dividends in the meantime.
Is buying now too early? I can't say for sure. But what I can
say is that a bull market in this commodity is as inevitable as the
tides. Perhaps literally so...
I'm sure you've heard lots of claims about freshwater resources
being decimated in California, Florida, and certainly Asia.
According to the World Economic Forum
analysis suggests the world could face a 40% shortfall between
water demand and available freshwater supply by 2030. Many
countries are already extracting groundwater faster than it can be
replenished (Mexico by 20%, China by 25%, and India by 56%.)"
So, I don't believe that we'll face these types of shortages.
Water is way too important. To account for the difference, you, me,
the Chinese and everyone else will pay through the nose to get
access to fresh water. What other choice do we have? I might be
able to ride my bike to work if gasoline gets too expensive, but
I'll sell my bike and my car and probably my gold and silver in
order to keep the fresh water flowing to my house.
The problem right now, and why you're not seeing ads about
investing in "blue-gold" on TV or in newspapers, is that water is
still relatively plentiful. And it's likely to remain plentiful for
at least the immediate and foreseeable future. But that's why it's
a great time to invest. When things are cheap, ignored and
plentiful, you should be a buyer - especially when you know the
trend is likely to reverse.
So today, I want you to think about becoming an investor in
these boring, ignored cheap water companies. All three companies
are basically just water utilities that provide drinking water and
manage wastewater throughout North America.
I probably won't be talking about water again anytime soon. It
just doesn't build the kind of excitement that gets you to take a
risk-free trial to one of our paid products.
But I think if you make a point of averaging into these
companies, and other similar companies, you'll have a nice chunk of
your portfolio in an asset that should experience a long-term
I've listed the companies below from largest to smallest. One is
a large-cap, multi-regional firm, and the other two are small-cap,
regional companies. Otherwise, they're nearly identical in every
other way. They all pay dividends between 3-4%. They all sell for
between 18-19 times trailing earnings. And they're all the boring
kind of utility that pays and grows dividends, year after year.
If you're looking for the next, huge, inevitable bull market,
take a closer look at the companies below. Buy them early and
often, collect the dividend, and patiently wait for the
American Water Works Company, Inc. (
Middlesex Water Co.
Artesian Resources Corp. (
Thanks Kevin. I think these companies are definitely worth a
closer look. Water does seem like it will be a very strong trend in
the future, though it's impossible to say when the bull market in
water companies might begin.