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The sun will shine again on Consolidated Water.

A 3-day, 22% rout based on a subpar quarterly report largely due to a transient factor (above-average rainfall), has returned shares of Consolidated Water Company (CWCO) to a valuation about half of its 10-year average price/earnings (P/E) and price/book value (P/B) ratios, well below those of comparable utilities, and with steady earnings and a well-covered dividend further mitigating downside risk. This is despite the fact that CWCO has grown production capacity 35% during the Great Recession with the imminent prospect of further substantial growth and longer-term opportunity for major expansion of the markets it can address, providing an investment opportunity that combines the downside protection of a utility with exciting...

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