Investors loving French water...and we're not talking about Perrier.
Investors made big bucks today in two giant European utilities based in France. It seems that keeping the countryside watered and wired has opened the dam on earnings. With consolidation heating up and water becomes scarcer, is this a signal for you to take a new look at the old country’s water and energy play?
Eric Bolling says the ratio of all the water on the planet to what’s drinkable is scary. There’s a world wide water crisis. The UN estimates that by 2025, 2 billion people will not have accessible water. Consequently, Bolling says the trade is to own Suez (SZE) and Veolia (VE), French utilities, for the long term.
Dylan asks about the water trade versus a company like Flowserve (FLS) which makes pumps, vales and seals - which do you pick?
Eric says he likes the water play more because you can put a pump in the ground.
Dylan reminds Eric in the past, he’s recommended PowerShares Water Resources (PHO) an ETF, which is a water trade.
Bolling says that he doesn’t like that play as much either, because it has a lot of infrastructure involved in it (think pipe companies). He prefers the pure water play.
Jeff Macke says if you like the European water play but you want to stay at home, then ITT Corporation (ITT) is the play. They make 35% of their revenues from helping water utilities operate more efficiently.
Tim Strazzini says he also likes Jeff’s pick – it’s a great company.
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On MAR 8, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Strazzini Owns (EWG), (WMT), (YHOO). Bolling Owns (MPEL), (SZE), (VE), Gold, Silver, Soybeans, Is Short S&P Futures, Is Short Nasdaq Futures, Is Short Natural Gas, Is Short Corn. Macke Owns (JWN). Strazzini Owns (FLS), (SNDK)