Consolidated Water: Saline solution

Water is one of those products that will never go out of style. And if you happen to sell the stuff, you’re in luck because today’s markets are thirstier than ever.

Climate change is among the factors driving increased demand for fresh water; Georgetown, Grand Cayman-based Consolidated Water Co. Ltd. (Nasdaq:CWCO) is one of the leading desalination companies poised to benefit from these conditions — no matter how illiquid the capital markets get.

The $352-million market cap company runs 12 reverse osmosis seawater filtration plants and serves freshwater-starved markets in the Bahamas, the Cayman Islands, Belize and the British Virgin Islands.

Living up to its name, 35-year old Consolidated Water has been an active acquirer of other water providers and is now the regional leader in desalination technology. It has exclusive long-term, fixed price contracts in lucrative resort markets and faces little competition for its retail and bulk sales (although that could change as big, well-resourced companies like General Electric Company (NYSE:GE) enter the water industry).

Share prices had been slowly sinking for several months until investors caught . . .

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