Tag - Cwco

The other day I made the case that oil is going to appreciate because it is a scarce resource, and that therefore oil and gas-exploration companies were a good long-term investment. Of course, as always, a good entry price is critical. 

The same case can be made for water. And the companies that treat water to make it safe to drink, and safe to dispose of, are compelling investments. In fact, depending upon your perspective, the case for water could even be stronger. While I could get by for a while without oil, I haven't got a shot without water.

Water demand is growing for use in agriculture, industry, cooking, energy production - the list goes on and on. And we use a lot of it. While you may only drink half a gallon a day, you used around 25 gallons during your last shower. And it takes 1,857 gallons to produce a pound of beef.   

In my world, this growing demand for water means looking for small-cap companies that can alleviate the problem, and investing in the best ones.  Just yesterday, I recommended a Chinese water stock to subscribers of my SmallCapInvestor PRO advisory service. That stock is poised to increase by more than 50% on growing demand for its suite of water treatment products.

If you were to read Samuel Coleridge's entire poem, you would follow the tale of a mariner who has returned from a long adventure at sea. Despite the abundance of water, the ship's crew has no method by which to remove the salt and make the water potable.

Thankfully, technology has advanced considerably in the last 210 years. Today, the desalination process removes solids like salt and other contaminants from seawater and makes it safe to drink. It is a burgeoning industry of $30 billion today, and according to FORTUNE Magazine, it will double by 2016...

Federal Agricultural Mortgage Corp. (Nasdaq:AGM), STEC Inc. (Nasdaq:STEC) and O'Charley's Inc. (Nasdaq:CHUX) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Winn Dixie Stores Inc. (Nasdaq:WINN), Nelnet Inc. (Nasdaq:NNI), Kenexa Corp. (Nasdaq:KNXA), RXi Pharmaceuticals Corp. (Nasdaq:RXII), Insight Enterprises Inc. (Nasdaq:NSIT) and Consolidated Water Co. Ltd (Nasdaq:CWCO).

QC Holdings Inc. (Nasdaq:QCCO), Consolidated Water Co Ltd. (Nasdaq:CWCO) and SYNNEX Corp. (Nasdaq:SNX) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Vitran Corp Inc. (Nasdaq:VTNC), Young Innovations Inc. (Nasdaq:YDNT), DryShips Inc. (Nasdaq:DRYS), GT Solar International Inc. (Nasdaq:SOLR), Plantronics Inc. (Nasdaq:PLT) and Excel Maritime Carriers Ltd. (Nasdaq:EXM).

Consolidated Water Co Ltd. (Nasdaq:CWCO), SYNNEX Corp. (Nasdaq:SNX) and RXi Pharmaceuticals Corp. (Nasdaq:RXII) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: United Rentals Inc. (Nasdaq:URI), DryShips Inc. (Nasdaq:DRYS), Echelon Corp. (Nasdaq:ELON), Lululemon Athletica Inc. (Nasdaq:LULU), Plantronics Inc. (Nasdaq:PLT) and Young Innovations Inc. (Nasdaq:YDNT).

Green Bankshares Inc (Nasdaq:GRNB), Trex Co Inc. (Nasdaq:TWP) and Signet Group PLC (Nasdaq:SIG) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Omega Flex Inc. (Nasdaq:OFLX), E House China Holdings Ltd. (Nasdaq:EJ), East West Bancorp Inc. (Nasdaq:EWBC), TBS International Ltd. (Nasdaq:TBSI), First M&F Corp. (Nasdaq:FMFC) and Consolidated Water Co Ltd. (Nasdaq:CWCO).

Ocean Power Technologies Inc. (Nasdaq:OPTT), Cabela's Inc. (Nasdaq:CAB) and Global Sources Ltd. (Nasdaq:GSOL) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Consolidated Water Co Ltd (Nasdaq:CWCO), Cougar Biotechnology Inc (Nasdaq:CGRB), Methode Electronics Inc (Nasdaq:MEI), Cascade Bancorp (Nasdaq:CACB), ATC Technology Corp (Nasdaq:ATAC) and Agree Realty Corp (Nasdaq:ADC).

<strong>Perfumania Holdings Inc.</strong> (Nasdaq<a href="/ticker/perf">:PERF</a>),<strong> FirstFed Financial Corp.</strong> (Nasdaq:<a href="/ticker/fed">FED</a>) and <strong>Orthofix International NV</strong> (Nasdaq:<a href="/ticker/ofix">OFIX</a>) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.<br /> <br /> Also included among the results:<strong> Savient Pharmaceuticals Inc.</strong> (Nasdaq:<a href="/ticker/svnt">SVNT</a>), <strong>Echelon Corp</strong>. (Nasdaq:<a href="/ticker/elon">ELON</a>), <strong>Excel Maritime Carriers Ltd. </strong>(Nasdaq:<a href="/ticker/exm">EXM</a>), <strong>Frontier Financial Corp.</strong> (Nasdaq:<a href="/ticker/ftbk">FTBK</a>), <strong>Consolidated Water Co Ltd. </strong>(Nasdaq:<a href="/ticker/cwco">CWCO</a>) and <strong>American Reprographics Co. </strong>(Nasdaq:<a href="/ticker/arp">ARP</a>).<br /> <br /> Here are the biggest percentage losers among small caps:

Small-cap stocks went into full collapse mode into midday trading, with financial firms unable to find traction. Even firms with “positive” earnings stories like Morgan Stanley and Goldman Sachs were getting soundly trounced as investors dumped stocks at an alarming pace. At 12:35 p.m. ET, the Russell 2000 (NYSE:IWM) was off 28.85, or 4.06% at 681.80, snapping Tuesday’s lows in the process.

The Financial Select Sector SPDR tumbled nearly 10%, and the government bail-out of American International Group (NYSE:AIG) did not stem the selling tide in the insurance giant, with AIG shares off 45%. Bank stocks were off 8%, with the No. 1 bank — Citigroup Inc. (NYSE:C) down 15% and the No. 2 firm — Bank of America Corp. (NYSE:BAC) down 8%.

Demand for safe-haven products was keen, as the yield on benchmark 10-year notes was down more than 2% at one point as investors bailed out of stocks in search of some secure spot to tuck away cash. The push for safe-haven flows generated a bounce in the U.S. dollar, which erased stiff morning losses against the euro. Crude oil was up about $1.30 a barrel, slicing away about $2 bucks from earlier advances.

The Russell slumped back below key chart support at 692, which suggests that the bounce off the summer lows was only corrective and not a part of a larger market bottom. The Dow and S&P 500 were already below the previous summer lows, but small caps are still about 30 handles above that summer trough. Sustained price action below 692 would suggest that those lows could be tested in the days to come, however.

Less than a day removed from what appeared to be a vote of confidence in the decision by the Federal Reserve to hold rates steady, the market was now worried that tight credit conditions could exacerbate the demise of key financial companies. With interest rates already down to 2%, begging for even cheaper . . .

Chase Corp. (Nasdaq:CCF), Entergy Mississippi 6% Series First Mortgage Bonds Exp 01 No. (Nasdaq:EMQ) and Finish Line Inc. (Nasdaq:FINL) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Finish Line Inc. (Nasdaq:FINL), Consolidated Water Co Ltd. (Nasdaq:CWCO), Provident Bankshares Corp. (Nasdaq:PBKS), Molecular Insight Pharmaceuticals Inc. (Nasdaq:MIPI), Naugatuck Valley Financial Corp. (Nasdaq:NVSL) and TransMontaigne Partners L.P (Nasdaq:TLP).

Here are the biggest percentage losers among small caps:

FirstFed Financial Corp (Nasdaq:FED), Hooker Furniture Corp (Nasdaq:HOFT) and Sonic Solutions (Nasdaq:SNIC) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: East West Bancp Inc (Nasdaq:EWBC), Tufco Technologies Inc (Nasdaq:TFCO), Heritage Financial Group (Nasdaq:HBOS), Consolidated Water Co Ltd (Nasdaq:CWCO), Protherics (Nasdaq:PTIL) and AuthenTec Inc (Nasdaq:AUTH).

Here are the biggest percentage losers among small caps:

US Shipping Partners LP (Nasdaq:USS), Crystal River Capital (Nasdaq:CRZ) and SL Industries Inc (Nasdaq:SLI) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $750 million.

Western Refining Inc (Nasdaq:WNR), Consolidated Water Co Ltd (Nasdaq:CWCO) and Website Pros Inc (Nasdaq:WSPI) are also among the biggest percentage losers.

Here are the biggest percentage losers among small caps:

Small-cap stocks edged slightly lower, pulled down by profit-taking from traders who caught the rally Monday, by analyst downgrades for several brokerage firms and by ongoing jitters over crimped consumer spending. However, better-than-forecast retail sales data generated some buying interest this morning. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was down 2.01, or 0.27%, at 731.23.

The retail sales report sported a headline figure at minus 0.2%, which was in line with the forecast, but the ex-autos figure was up 0.5%, which was well above the consensus of 0.2%. The surprisingly stout sales figure sparked a reversal in overnight selling in stocks, pushing stock index futures and index basket products into the green ahead of the regular opening.

The market has seen a run of late where economic data surprises on the upside, but many in the economic community remain unconvinced that a recovery in equities or the recent above-forecast data means that the economy is out of the woods. “Equity prices in the United States, Europe, Japan and India show a noticeable recovery from this tumultuous period, while stock prices indexes in China, Brazil and Russia have also posted gains from their recent lows. We remain skeptical because the worst of the weakness in U.S. business activity is not here yet,” Asha Bangalore, economist with Northern Trust, said in an email.

The market could continue to bask in the glow today of the Hewlett-Packard (NYSE:HPQ) purchase of Electronic Data Systems (NYSE:EDS) for $12.6 billion, which will heighten the anticipation of additional merger and acquisition activity. If there is M&A activity in large caps, certainly there are deals to be done for small-cap companies as well.

Coming into today’s session, the market was on the defensive in overnight trading on a dip in European shares following a jump in U.K. inflation data and write-downs from a large French bank. In addition, an Oppenheimer analyst downgraded . . .

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 . . .

The Russell 2000 (NYSE:IWM) closed with a remarkable gain following news that the U.S. Federal Reserve has lowered its target interest rate. The small-cap index rose 31.45 points, or 4.83%, to 681.93. The Dow Jones Industrial Average (INDU) advanced 420.41 points, or 3.51%, to 12,392.66.

On a year-to-date basis, the Russell 2000 has retreated 10.98%, while the Dow is down 6.57% and the S&P 500 has let go 9.37%.

Small-cap stocks soared higher than their larger counterparts and added to their earlier gains on news after the start of trading that the U.S. Federal Reserve has decided to lower its target interest rate 0.75% to 2.25%.

“Recent information indicates that the outlook for economic activity has weakened further,” the Fed said in a statement. “Growth in consumer spending has slowed and labor markets have softened.”

The market had priced a full 1% of the federal funds rate, the rate at which commercial banks make overnight loans to each other, but policymakers expressed concern about inflation.

Shares of Consolidated Water Co. Ltd. (Nasdaq:CWCO) are rising on news before the start of trading that the maker of seawater desalination plants and water distribution systems nearly tripled its fourth-quarter profit. The Cayman Islands-based company reported that its net income for the three months ended Dec. 31, 2007, was $2.7 million, or $0.18 per share, an increase of 296% compared with net income of $0.67 million, or $0.05 per share, a year earlier.

At 12:40 p.m. ET, the stock had advanced $5.25, or 29%, to $23.25.

Consolidated Water Co. Ltd. (Nasdaq: CWCO) shares are up after investment bank Brean Murray upgraded the operator of seawater desalination plants to a “buy” from “hold.” Brean Murray said reaction to a negative story in Barron’s was overblown.

In the Barron’s story, the magazine said Consolidated Water’s shares might drop by half if it did not resolve a dispute with the British Virgin Islands. Barron’s said if the Virgin Islands do not pay its bills, Consolidated Water’s 2008 earnings could be slashed by approximately one-third below the $1 forecasted by the Street.

In morning trading, CWCO shares are up 6.14%, or $1.51, at $26.11. Over the last 52 weeks, shares have ranged from $23.29 to $37.49.

Consolidated Water Co. Ltd. (Nasdaq: CWCO), Palomar Medical Technologies Inc. (Nasdaq: PMTI), Sport Chalet Inc. (Nasdaq: SPCHB) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

Shares of Consolidated Water Co. (Nasdaq: CWCO) are tumbling today after Barron’s reported over the weekend that shares of the water company could plunge by as much as half if it cannot resolve a disagreement with one of its biggest customers.

According to Barrons, the Cayman Islands-based small cap is in a dispute with the British Virgin Islands’ government over payments for water from a desalinization plant. The British Virgin Islands, who has been in discussions with Consolidated Water for the past 10 years to purchase the plant, which removes salts from sea water, claims it, not Consolidated, owns the plant, according to the publication.

The Virgin Islands is the only customer for a desalinization plant that could account for up to a quarter of the company's current earnings, Barron’s says.

Barron’s says problems such as the Virgin Islands dispute could cut Consolidated's 2008 earnings by roughly one-third below the $1 per share now forecast by Wall Street analysts and shares could forfeit their premium valuation, causing the stock to plummet by as much as half. The stock currently trades at 30 times its expected earnings of $0.80 for the current year.

In the mean time, the company continues to record revenues and earnings from the British Virgin Islands, despite the fact that local authorities have been withholding payments for a year.

It’s not the Wild West anymore; it’s the Arid West, as in the well’s getting low and what’s left in it is pure poison. Basin Water, Inc. (Nasdaq: BWTR) is out to fix all that, stripping toxins from groundwater and making drinking water safe. Cleaning up the Old West was never like this.

Basin Water and its many competitors have the law on their side. The Environmental Protection Agency and state authorities have established maximum contaminant levels, or MCLs, to meet safety standards. Responsible drinking doesn’t include arsenic, nitrate and perchlorate, found more and more in underground aquifers as the U.S. population and industries grow.

Basin, though, has a treatment others don’t: an ion-exchange technology that cleanly and cost-effectively reduces groundwater contaminant levels. The company sells its system to water suppliers that include utilities, cities, municipalities, special districts, real estate developers and others. Customers include American Water, Aqua America, Inc. (NYSE: WTR), California Water Service Group and American States Water Co. (NYSE: AWR).

Rancho Cucamonga, Calif.-based Basin wants to expand nationally—contaminated groundwater is most everywhere—but its key target is the southwestern United States, which Basin calls the Arid West. It’s the region with the highest population growth and a chronic water shortage. The population of California and Arizona grew by about 5.6 million between 1990 and 2000, and is expected to increase by another 12 million in the next 20 years, the company says in its annual report.

The Arid West gets most of its drinking water from surface and groundwater, but surface water has little room for expansion, due to expense of procurement; it often must travel miles before reaching markets. Desalination carries a lot of energy costs, and other factors also make it unattractive, according to Basin. Instead, groundwater serves as the primary drinking water source for more than half of the United States. It is dependable for water providers, and cleaning it up is a market area of big growth.

But don’t drink the groundwater before it’s been treated. It’s got arsenic, nitrate and perchlorate—toxins, certainly, but to Basin a chance to outduel opponents with its leading ion-exchange technology. Other methods include coagulation microfiltration, media absorption, reverse osmosis and electrodialysis reversal. But many of these are costly or waste-producing, and they are generally designed for large industrial installations rather than wellhead treatment.

Accredited Home Lenders Holding Co. (Nasdaq: LEND), Ascent Solar Technologies, Inc. (Nasdaq: ASTI) and Ceragon Networks Ltd. (Nasdaq: CRNT) are among the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $500 million: