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- American Water Works IPO Analysis: Just an Exit Strategy for Parent Company RWE [view article]
- American Water Works Springs a Leak [view article]
- Hot IPOs: Intrepid Potash and American Water Works [view article]
- Wall Street Breakfast: Must-Know News [view article]
- Water Utility IPO: American Water Works [view article]
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- American Water Works: Needs Liquidity
- American Water Works Springs a Leak
- American Water Works IPO Analysis: Just an Exit Strategy for Parent Company RWE
- Hot IPOs: Intrepid Potash and American Water Works
- Wall Street Breakfast: Must-Know News
- Water Utility IPO: American Water Works
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American Water Works IPO Analysis: Just an Exit Strategy for Parent Company RWE [view article]
Well thought out analysis. It's what is behind the obvious that can get one in the end. i will pass on this company until the first of the year at least ReplyAmerican Water Works Springs a Leak [view article]
RWE, a really giant utility holding company (see RWEOY on pink sheets for company info) sold off its water holdings after waiting 18 mos. for financials to stabilize in Europe...where it competes with Suez (see SZEZY) and after Suez's merger with Gaz d'France, I guess the majority holders (the CEO and senior officers of RWE) decided the time had come to bank 81 million dollars. They don't want to hold "regulated utilities" in the U.S., and the Suez delisting of its ADR's should give pause to purchasers - of the inability of those conglomerates to comply with Sarbanes-Oxley and be "transparent"...It should come as no surprise that "goodwill" and other ephemerals were part of the water holding's valuation. Reply
American Water Works IPO Analysis: Just an Exit Strategy for Parent Company RWE [view article]
Very nice analysis on the AWK IPO. I passed on it as well but it could become attractive in the teens when the yield would be higher. There is no need to take the debt risk exposure now. ReplyAmerican Water Works IPO Analysis: Just an Exit Strategy for Parent Company RWE [view article]
Posting above is most accurate...I sold RWE about a year ago, when they decided to hold up the spin-off of the water subsidiary, and after the debt loading was revealed. Ditto for Suez, which is getting out of the water treatment business in its merger with Gazd'France, leaving Veolia and GE as the last large-cap conglomerates with water processing as a major component.Most of the water utilities pay small or no dividends, are heavily regulated and subject to "hind-teat" funding for repair and maintenance of production and distribution. The water infrastructure in the Developed Economies can't get sufficient funding until "BOIL WATER" notices are sent...and some of the companies that specialize in parts, Gorman-Rupp, Lindsay, Insituform, etc., have had high speculative P/E increases, but their sales and contracts aren't like those of tankers and bulk shippers.
When clean water and waste services are treated like economic commodities, then market values may be fairly established. Until then, and I may not live that long, the situation wherein a large conglomerate, such as WRE, tries to peddle a debt-laden water service, will probably continue. Reply
American Water Works IPO Analysis: Just an Exit Strategy for Parent Company RWE [view article]
Bill Simpson is one savvy guy !!!!!!!!!!!!!I would subscribe to his IPO newsletter if I could only get a
shot at decent and promising IPOs.
Tom Durkin (Durkin44@gmail.com)
Reply
American Water Works IPO Analysis: Just an Exit Strategy for Parent Company RWE [view article]
Thankyou for the analysis. It was very interesting and comprehensive. I was considering AWK as a long term play but as a result of your article I'll pass for now. ReplyHot IPOs: Intrepid Potash and American Water Works [view article]
When AWK was taken out by RWE a few years back, it was at $44. It took a while for the regulators to accept the deal, and AWK languished at a remarkably low $39 for almost a year, while paying dividends. The arbitrage was incredible! It is now back on market at 20-22, with the need for water and wastewater greater than before. I would suggest that water stocks (not necessarily utilities) will command higher multiples than before, esp. if they develop their water purification and wastewater components. Kelda was taken out in England at a premium. CCC has doubled thanks to China's need for its carbon filters. Aqua and AWK will go higher as people demand water from companies that can provide it better and cleaner than others. These two are ending the monopoly of municipal (and hence regulated) water utilities, opening the possibility of higher prices for the stocks and the related industries. See the Colfax IPO upcoming. ReplyWall Street Breakfast: Must-Know News [view article]
A lot of opining going around.Can't help seeing a little humor in the little things. Reply
Schweitzer
Wall Street Breakfast: Must-Know News [view article]
We have to keep in mind, these are summaries, and not analytical reports. He reports on opinions rather opines However, he should be free to opine on the quality of those opinions. ReplyWall Street Breakfast: Must-Know News [view article]
Agree with the first post...thanks, Eli! ReplyWall Street Breakfast: Must-Know News [view article]
This column cites housing inventories -I think they are understated. Do you know what sales rate is being used in the divisor?? ReplyWall Street Breakfast: Must-Know News [view article]
I love Eli's work. Especially the EPS drill. Saves so much time. Go Alpha--support Eli. Reminds me of the classic statements of Warren Buffett: "What is the biggest vice of investors?" Warren, "Being overactive." "How could you have made more money?" Warren, "Sat on the porch more; done less." Eli helps me do both. My addition: Most companies need a MBA/Mgt playground so they do less and keep sustaining their brands.... ReplyWater Utility IPO: American Water Works [view article]
As a former managment employee who still has regular contacts with America employees, I would be very hesitant to invest in this comany. Too many experienced supervisors and managers were shown the door in 2004 when an RWE ordered reorganization took place. Now because of repaid growth in infrastructure replacement and PUC mandated practices, too many unqualified and inexperienced people are responsible for the day to day operations that are necessary to deliver a quality product and prevent incidents like Joplin, MO. In Joplin recently, the entire city was under a boil order because there were bad decisions made on how to handle treatment at their plant when the supply source experienced a surge in water due to heavy rains. Coincidently, the former plant manager, a 20+ year employee, had been layed off during another reorganization. Now the Missouri Public Service Commission is investigating. ReplyWater Utility IPO: American Water Works [view article]
A correction -Aqua America is WTR not ATW
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General Discussion on AWK
Is this a buy or a sell? Reply