Let's be realistic. You're NOT going to get rich in a hurry
byinvesting in mainstream blue-chipstocks . The S&P 500 is a
handybenchmark and a goodproxy for the U.S.economy , but it's not
going to make anyone rich unless you have decades to invest.
If you want to truly soarabove the market , you have to
dedicate at least part of your portfolio to serious big-game
With that in mind, my team and I just released a report on my
boldest predictions for 2014. (On Wednesday, I told you about one
prediction.) These are ideas that you won't hear about in the
mainstream financial press until it's too late.
In the past, my previous predictions have returned thousands
of dollars to subscribers of my newsletter
. Here's a brief look at a few of the triple-digit winners...
But my ideas for 2014 are some of the most exciting to date.
In fact, I had such a hard time limiting myself to just 11
"game-changing" ideas that I had to leave some off the
I want to share one of these ideas with you today. Just
because it didn't make the cut thisyear doesn'tmean there isn't
seriousinvestment potential here.
In fact, I think patient investors could easily make a
killing in themarket with this idea.
But first, let me give you a little background so you fully
understand the potential.
The world has a serious water shortage problem. The sad
story is that at least a billion people lack adequate access to
even minimal quantities of drinkable water, according to the
And this is not the melodramatic carping of
environmentalists. It's much more than that.
Some 2.8 billion people --
44% of humanity
-- live in areas of high water stress as defined by the
Organisation for Economic Co-operation and Development.
Things aren't forecast to get any better. In fact, the
future looks downright bleak. TheWorld Bank says 3 billion
peoplewill live in areas with severe water shortages in the
next 25 years, many of them in Africa, the Middle East and
This water shortage has sent companies scrambling to come up
with solutions to at least help get through this problem. For
, the world leader in agricultural products, is developing an
entire line of seeds that produces plants that can thrive in
No one knows the state of the world's water resources better
than Monsanto, whose seeds are planted in every nation where
man cultivates crops. And if Monsanto is betting its
futurerevenues on low-water crops, then even the most skeptical
observer ought to concede that water must be a pressingissue
All this is a bit strange given that there is literally
water everywhere. We're not running out of the stuff -- we have
the exact amount of water we've always had. But as water usage
has changed, the clean drinking water that communities survive
on is becoming increasingly scarce.
Though most of the world is covered with water, only 1% of
it is suitable for consumption.
seawater is the inevitable solution to the world's
. Though potentially lethal if gulped down, seawater is
perfectly potable when thecompounds known collectively as
"salts" are removed.
The fact is, we've got the water. The only question is
whether we're willing to spend themoney . Any water shortage
can be solved tomorrow with a process known as reverse osmosis
desalination, which basically means shooting water at extremely
high pressure through a series of filters to remove the
The only problem is that it's pricey. And unless the plant
is built with an ingenious little piece of equipment, the clean
water it produces is probably going to be too expensive.
Here's the kicker: This piece of equipment -- called a
pressure exchanger -- is basically
controlled by one company
Energy Recovery (Nasdaq: ERII)
Energy Recovery manufactures a device that captures the
energy from a high-pressure stream of water and recycles it so
as to decrease the pump workload -- think of it as the second
peddler on a tandem bicycle who makes the uphill climbs half as
By capturing that energy, a plant's overall energy bill can
reduced by up to 60%
, according to Energy Recovery's regulatory filings.
Build a desalination plant without Energy Recovery's
patented equipment, and your power bill might be $10 million a
year. Install the devices, and the electricity costs could drop
to $4 million. For cost-conscious operators like regional water
utilities, the decision is a no-brainer.
As I say in my recently released report, I wouldn't invest
more than 10% of your portfolio in these game-changing ideas.
But, sometimes, that's all you need to move the needle on your
Energy Recovery definitely has the potential to do major
things in the future. And should be on anyone's radar who is
looking for a 'game-changer' for their portfolio.
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