The H20 Trade as World Water Day Raises Awarness About Growing Scarcity Crisis
The lack of clean water is a topic that we have covered extensively on Fast Money. It's estimated that water infrastructure is a $400 billion business, but our own Eric Bolling explains why today, in particular, is so important.
Here’s Eric’s report:
“Mention scarce commodities, and most people think of gold or oil. But water is even scarcer. Despite the fact that nearly 3/4 of the earth is covered in it, less than 1% is drinkable.”
“That has lead to unspeakable tragedy. Every three and a half seconds – a person dies from contaminated water. That’s more than AIDS and cancer.”
“The UN is meeting today for World Water Day where officials are addressing this crisis. In the coming years, literally trillions of dollars will be spent to make drinkable water. This is more than just a money-making opportunity. This is an opportunity to change lives.”
“The problem won’t be solved overnight, but with developing nations like China and India facing severe water shortages, water stocks could flow to some fast money in the years to come.”
“I am making a plea, and offering you a business opportunity. Help the world and help yourselves. Get on board. Invest your time and your money. Be a part of the solution, not the problem.”
Eric says the water shortage is a serious crisis, but investors can make money and help the world at the same time.
In the past, Eric has recommended 3 water plays; Paris-based Veolia Environnement (VE), Suez (SZE) and SJW Corp. (SJW) and over the last 6 months they’ve been up 20-30%.
Today he introduces two new trades: Companhia de Saneamento Basico (SBS),a Brazilian water play and Layne Christensen (LAYN), a domestic infrastructure play.
Karen Finerman adds in this space she likes Floserve (FLS) as a water infrastructure company and Mueller Water (MWA), which is trading near it’s lows because it has some residential exposure, but she feels it’s a great company.
Jeff Macke adds one more stock – he recommends ITT Corp. (ITT).
Eric reminds investors that these stocks should sit in a portfolio long-term, because the water shortage problem isn’t going away.
On MAR 22, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Bolling Owns (SZE), (VE), (SJW), Gold, Silver, Soybeans, is Short Corn; Finerman's Firm & Finerman Own (FLS), (MWA), (GS) (GE); NBC Universal Is The Parent Company Of CNBC