Nalco Holding Company (NLC)

All Comments on NLC

  • commenter
    Coop
    Jun 26 10:38 AM
    Diving Into the Water ETF [view article]
    GE is definitely a broadly diversified company. It just takes a fully loaded freight train to move the stock. Reply
  • commenter
    scott/bllngs
    Jun 11 09:34 AM
    Water Investments: Staying on Land - For Now [view article]
    Richard put his finger on the future for water:the need for progressive breakthroughs in the development of membrane technology in the desalinization process + running those plants on alternative energy. There are several companies, like Consolidated Water, that have already shown this to be a magnificent opportunity! Reply
  • commenter
    charles I.
    M.
    May 30 08:43 PM
    Diving Into the Water ETF [view article]
    Have you looked at PICO ?- this is primarily a southwest co. that develops and markets warter rights and currently building a water pieline into Reno - i have owned it for a couple of years and it has done well Reply
  • commenter
    Richard Shaw
    May 29 03:49 PM
    My Website
    Water Investments: Staying on Land - For Now [view article]
    Stuart,

    Good points about water shortage issues.

    The World Bank warns of "catastrophic consequences" if water use and supply are not brought into balance.

    They say that worldwide we are "mining water" by pumping more water out of the ground than is being replenished -- and that once our pumping depletes the aquifers our pumping will be limited to the recharge rate (no statement about ability of desalinization to make up the difference, I suspect it can't keep up).

    The impact of a future physical limits reducing water pumping rates would have direct impact on food production levels and related social unrest.

    Apparently, even fossil aquifers (water trapped in geologic formations for which there is no replenishment) are being pumped in some cases.

    Rivers are being diverted upstream to various uses, which causes conflicts with downstream users. Water wars are local now, but could enlarge to be between countries in the future.

    About 70% of world water use is for irrigation, about 20% for industry and about 10% for residential use.

    The world needs more efficient methods (such as drip irrigation instead of surface water irrigation, and recycling of industrial waste water for industrial reuse). The world also needs more desalinization capabilities.

    As water shortages become more evident, there should be an increasing number of investment opportunities to benefit financially from those companies that will help solve the problem.

    Utilities may not be the best option, but those technology companies that create solutions for greater water efficiency or the creation of more water supply from the oceans may be good opportunities.

    Richard

     Reply
  • commenter
    friedt
    May 24 08:00 PM
    Diving Into the Water ETF [view article]
    I forgot to mention Canadian water companies that have also been bought out (by GE), but a number remain. I own LGV which used to be GLAGF. Also, look in medical instruments field for companies that manufacture devices that measure water purity. I know it sounds like a wide net, but water is a wide net and touches strongly on food companies as well as agri companies. Reply
  • commenter
    friedt
    May 24 07:48 PM
    Diving Into the Water ETF [view article]
    Many of the stocks analyzed have had their run-ups. Fortunately for me, I was on water years ago and bought CWCO (desalinization), SBS (Brazilian water utility), CBI (water transport and containers), Valmont (agricultural equipment) and both Itron and Badger Meter after seeing a tiny article in WSJ about landlords thinking of installing water meters alongside gas and electricity measurement. For pipelines see Ameron. But in the last 4 years, literally dozens of water related companies have been bought out at premiums by GE (Ionics and a few others) and Teledyne (it purchased a water meter company). American Water Works has been an incredible investment. I bought it under 20; it was bought out by the German behemoth RWE at $44. When that purchase was announced, arbitragers made a fortune because the gap remained at 39 and 40 while the deal cleared AND continued to pay dividends during the wait. I bought RWE after its AWK purchase and rode it to $117. Now AWK is back as an IPO, with some early financial issues, but essentially the same company that fetched $44 a few years ago. Similarly, Nalco was bought out at a premium and subsequently returned as an IPO.

    While the criticism of individual companies in PHO is quite valid, in many cases it is because the ETF (and much of the public) is jumping on water very late. Mario Gabelli had been preaching water for years!

    As for other water related companies: check many of the basic chemical companies for water purifying chemicals. Check some of the agri equipment companies. Pipe companies (plastic and metal)have been bought out but others remain. There are companies that own water rights. Check out CADIZ and PICO. And as one of the other comments suggested, check on global water companies, from Austria's BTW to Japan's Kurita, France's Suez, and companies in Italy, Finland, and elsewhere. But still here in USA: Mueller Water, Chart Industries (though it has had a run-up) and various fluid flow control/measurement companies.

    Unfortunately, by the time CNBC and others get around to a topic, it's too late to make the initial big money. I know casually one of the hosts on CNBC and have bugged him for years about not reporting on water. He blew me off each time, finally telling me that when water really becomes scarce, the govt. will take it over and no one will make money off water! Sure, just like with oil and gas!

    So do research. There are a number of private companies that are good with water. Keep an eye out for IPOs. But if Immelt would make GE Water a stand alone company, it would be better than VE because it has gobbled up every water related company it could over the last few years. Basin Water has been a notable failure in water, due to financial shennigans and I have not made any money off Euro Tech Environmental, but there are still possibilities out there even if the early money (as with CCC and others in PHO) has been made. Tom     Reply
  • commenter
    Big D
    May 23 10:08 PM
    Diving Into the Water ETF [view article]
    Obviously, you haven't tried to hire engineers or scientist lately. I like PHO for the human resource angle. Tetra Tech is the major engineering group, so is URS. Aqua American and Southwest Water and Watts Water are long on experienced people. When you look at the demographics of many urban utility departments, there will be a mass exodus and these folks will step in and keep the the taps flowing. I own it unbder a Roth umbrella for the long-wave aspect. Reply
  • commenter
    ireneult
    May 21 05:53 PM
    Water Investments: Staying on Land - For Now [view article]
    Excellent article which I'm glad to see as I've been considering
    investing in this sector. As with author, I'll stay on sidelines for now.
    Thanks.     Reply
  • commenter
    Mark Napier
    May 21 10:57 AM
    Diving Into the Water ETF [view article]
    Timely and interesting article in Business Week by S&P Equity Research on desalination:

    www.businessweek.com/i...?
     Reply
  • commenter
    omic
    May 21 12:43 AM
    Diving Into the Water ETF [view article]
    Tetra Tech posted around 100 new positions world wide, (only in May)
    It might be a good sign for company growth.     Reply
  • commenter
    Lewis
    Kornfeld
    May 20 04:59 PM
    Diving Into the Water ETF [view article]
    Obviously you're not all wet. Reply
  • commenter
    NO DooDahs
    May 20 04:58 PM
    My Website
    Diving Into the Water ETF [view article]
    Nice article. I examined the PHO about a year ago, and came to same conclusions:
    www.billakanodoodahs.c.../

    It may be a "water" index and a "water" ETF, but very few of the companies are pure plays on water and very little of the net revenue of the portfolio represented by the ETF comes from water.

    To the commenters: Hey, if you want to trade it technically, go right ahead! It's been a good trade several times! Just don't jerk your own chain and pretend you're really "invested in water" by owning the PHO, because you'll only be fooling yourself.     Reply
  • commenter
    imapedestria
    n
    May 20 02:26 PM
    Diving Into the Water ETF [view article]
    You sound too much like an accountant. If you wait until you actually see big numbers or water becoming meaningful then you are too late. Like you said, the crisis is not happeningnow, but will evolve over the next few decades. IMO, outfits like GE will benefit greatly, but you canot see it NOW. Same goes with many of your other passes. Finally, PIO will be a much better performer over the long -run. Reply
  • commenter
    Just Me
    May 20 01:11 PM
    Diving Into the Water ETF [view article]
    I also would really appreciate a similar anaysis of PIO, which I own, and which I had selected over PHO soon after it was issued. Thanks. Reply
  • commenter
    danno
    May 20 12:48 PM
    Diving Into the Water ETF [view article]
    Hmm, this just goes to show that even a cursory review of the water ETFs quickly casts doubts on their value as in investment.

    Let's look at the fundamentals.

    1) many of these companies have minimal exposure to the water business and therefore it's not going to be a key driver of their stock prices.

    2) the water sector is phenomenally difficult place to make money or earn a return above the cost of capital.
    - it's tough to raise prices as a utility.
    - you can't cut people's water service off when they don't pay without getting lynched.
    - the companies that have low-tech products like pipe and valve makers typically get much of their revenue from oil and chemical plants.
    - pipe and valve makers are screwed because these are commodity products get killed by high energy and materials prices buy they sell mostly to cash-strapped municipalities that buy via an RFP process which 90% determined by how low the price is. "My valve is better than yours"? Gimme a break.

    Even when you look at Layne Christiansen or Flowserve, you'd really struggle to find much exposure to water either.

    - Water utility companies have a disastrous history in developing countries (see Suez, Vivendi, Veolia) and get their systems nationalized, etc.

    - Calgon Carbon is subject to intense competition from China and has management NOT "smarter than your average bear."

    - Desalinization is running into big problems because it uses a ton of energy (costly) and creates some significant environmental hazards. It's good for places that have cheap energy (Libya, Persian Gulf) but otherwise it's a long way from being a good long-term solution. It just sounds sexy to investors.

    - Millipore has almost zero exposure to water.
    - Water utilities tend to never earn their cost of capital

    - At the end of the day, I doubt you really could make an investment worthy water index because there are so few quality companies that can can grow and have high exposure to the sector or to some macro trend like increasingly scarce water. It's a nice idea in concept, but very, very tough to achieve an investment fund worthy of the theme. That said it's an easy way to market a "theme" that will grab unsophisticated investors' attention and money. I'm sure the product providers are laughing all the way to the bank.

    FYI Water companies worth a look are Biotreat in Singapore or Eurodrip in Europe - but those are very speculative.

     Reply
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