water


‘Water wars’ refers to the idea that some countries, which hold enough water to be able to export it, control headwaters of a river, or hold reservoirs/large sources of water, have an extremely strong source of leverage over water-scarce countries. At times, this causes water to be thought of in simplistic terms as a commodity, rather than a basic building block of life, access to which is detailed in several international human rights conventions, but not explicitly recognized as a self-standing human right in international treaties. When countries deny other states water or imply they might use water as leverage for political gain, this is water conflict, and it’s brewing in Central Asia.

Interesting that water is referred to as a human “right”. It is an economic good if and when it becomes scarce. That to date water in many countries has been considered a free good due to abundance, does not translate that into a human “right”.

Historically wars have always been fought over commodities: land, arable land, cattle, oil, the list is endless. Simply add one more commodity to that list.

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Water has been touted by a number of blogs in the past. The current pullback may present something with an interesting valuation. I’m going to start having a look through the sector and see if there is anything on a valuation basis that looks attractive.

Best Performing Stocks last 3 months

Symbol Company…………………………….. Name Percent Change

CTWS Connecticut Water Service… ………………29.47%
SWWC Southwest Water Company………………… 27.37%
CDZI Cadiz Inc……………………………………….. 22.01%
CWT California Wtr Svc Group………………………. 21.37%
SJW SJW Corporation……………………………… 14.48%
AWR American Sts Wtr Co…………………………. 13.00%
WTR Aqua America Inc……………………………… 12.53%
CTWSP Connecticut Wtr Svc Inc…………………… 9.09%
MSEX Middlesex Water Company……………………. 4.55%
CWCO Consolidated Water Co Inc…………………. 1.37%

A friend of mine, who is very much up on the environmental issues identified a while ago now the coming water crisis. I have seen articles posted around the internet with regards to this issue, but it does seem to be going more mainstream now. Possibly for those with longer investing timeframes, this might offer an attractive opportunity.

As an aside, locally here in Northlands, New Zealand, farmers now have to gain Council certification to be allowed to access the water supply from rivers and deep bores. Prior to this week, access was free. We get a lot of rain. Other parts of the Country, specifically the Canterbury region have had droughts all summer, the worst in some 60+ years. Australia has had droughts for I think some three or four years now, all-in-all not a good outlook.