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PowerShares Water Resources Portfolio ETF (PHO)

  • Dec. 26, 2014, 4:25 PM
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  • Apr. 7, 2014, 9:10 AM
    • Twitter's down 32% this year, Facebook's off 20% in a month, and biotech nearly that much, but money is returning to the industrial sector. While the Nasdaq 100 posted its worst one-day drop since 2011 on Friday and last week fell for the 3rd week in 4, the Industrial Select SPDR (XLI) gained 1.6%.
    • In the year's first quarter, the XLI had lost 1.4%, putting it in 9th place among 10 S&P 500 groups.
    • "You’re seeing the beginning of investors shifting money ahead of a wave of spending,” says Drew Nordlicht of HighTower Advisors. “The expectation is, as the economy begins to kick into a higher gear, corporate America will utilize the amount of cash to spend on capital expenditures."
    • GE comprises more than 10% of the XLI, and UTX, Union Pacific, Boeing, and 3M round out the top 5, each with holdings in the 5% range.
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  • Dec. 20, 2013, 4:32 PM
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  • Sep. 20, 2013, 4:25 PM
    • The week's ETF movers - Gainers: EWS +4.07%. EWZ +4.00%. TAN +3.85%. WPS +3.59%. PHO +3.22%.
    • ETF Losers: VXX -4.41%. GDXJ -3.15%. OIL -3.07%. USO -2.75%. SIVR -2.53%.
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  • Aug. 20, 2013, 3:52 PM
    • It's not surprising Q3  guidance in the water and renewable-energy sector was relatively subdued given mixed economic data and continuation of delayed orders for big projects, says Wedbush, however ...
    • Only Tetra Tach ((TTEK) showed ill-effect from the sequestration and instead there are encouraging signs out of municipalities.
    • Xylem (XYL) and Watts Water (WTS) said Europe had been worse than expected, but saw recent stabilization. While several noted weakness in China, A.O. Smith (AOS) bucked the trend with a 30% increase in sales there.
    • Wedbush's favorites  are low-risk, high performers like Pentair (PTR), Franklin Electric (FELE), and Valmont Industries (VMI). Valmont is a controversial name, but the team fells concerns over slowing irrigation business are baked into the stock and the valuation - particularly given the balance sheet and ROIC - is compelling.
    • Names to avoid are Nuverra Environmental (NES), Aegion (AEGN), and Energy Recovery (ERII) given disappointing quarters for the first two and an extremely overvalued ERII.
    • ETFs of note: FIW, CGW, PHO, PIO.
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  • Mar. 26, 2013, 12:09 PM
    U.S. water infrastructure gets a grade of 'D' from the American Society of Civil Engineers. Fixing the problem will cost ~$298B over 20 years. This and rising worldwide water demand may spell opportunity in water-related ETFs. PowerShares' Water Resources (PHO), the largest such fund, is up more than 10% YTD. 
  • Jan. 29, 2013, 7:51 AM
    More on Pentair (PNR) Q4 earnings: FY2013 outlook of EPS of $3.10-$3.30 vs. consensus of $3.23. Revenue of $7.6B vs. consensus of $7.75B. "We are seeing signs of momentum building in several end markets, such as global energy and North American residential." Pentair accounts for 7.95% of the Water Resources ETF (PHO).
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  • Dec. 17, 2012, 2:51 PM
    Bullish on the water sector, BAML says it's not just about "pressure both on the supply and demand side." The Global Water Total Return Index has formed a year-long bottom relative to the S&P, says the analyst team. At least four ETFs claim to be plays on water - PHO, PIO, CGW, FIW - but it's worth a look under the hood to see exactly what they're holding.
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  • Dec. 14, 2012, 11:22 AM
    Will the western U.S. ever solve its water woes? Estimates suggest demand will continue to outstrip supply, much as it has in the past decade. By 2060, the median shortfall could reach 3.2M acre-feet - or about five times as much water as Los Angeles uses each year. When scientists talk about the need for “climate adaptation," this is what they mean, Brad Plumer writes.
  • Nov. 29, 2012, 3:42 PM
    Pentair (PNR +2.8%) basks in an upgrade to Buy with price target of $58 from Bernstein. The move follows Pentair's 2013 EPS outlook of $3.10-$3.30 vs. 2012's expected range of $2.30-$2.35. Additionally, Pentair believes (presentation) it can earn $5 in 2015. The stock is the largest holding of the Water Resources ETF (PHO +1%).
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  • Nov. 27, 2012, 2:10 PM
    Pall Corp (PLL -2.3%) slips today after BB&T cut the shares to Hold on valuation, citing softening demand trends.
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  • Oct. 29, 2012, 5:35 PM
    More on Flowserve (FLS) Q3 earnings: FY2012 EPS guidance narrowed to $8.20-$8.70, thanks to negative currency effects (but offset by continued share repurchases). "Softer conditions ... may impact the shorter cycle business and push out the timing of expected later cycle project investments." At 7.97% of assets, Flowserve is the 2nd largest holding of the Water Resources ETF (PHO). (PR)
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  • Oct. 12, 2012, 3:42 PM
    Pall Corp. (PLL) is reiterated a Sell with a $57 price target at Macquarie following the stock's three-month 21.5% run. Other sell-side names - BofA, Credit Suisse and JPMorgan - stick with the momentum, raising their ratings and price targets. Pall is the largest holding in the Water Resources ETF (PHO) at 8.83% of assets.
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  • Sep. 20, 2012, 9:07 AM
    American Water Works (AWK) is upgraded to Buy and added to the Conviction Buy List at Goldman with a $42 price target, suggesting 19% upside with the dividend. The firm says AWK will benefit from above average rate base growth as aged water infrastructure is replaced, recently granted rate increases, and improving cash flow which will mitigate equity needs.
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  • Aug. 21, 2012, 10:59 AM
    Water Resource ETFs may be more marketing ploy than a play on scarce potable water, writes Everyday Finance. PHO is more a utility REIT, the vast majority of its holdings being in real estate positions for utilities and water sanitizing companies. Others (PIO and CGW) face similar drawbacks.
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  • Aug. 2, 2012, 8:18 AM
    Veolia Environnement (VE) tumbles 10% in Paris trading after saying it will increase cost cutting, as the deteriorating economy in Europe forced it to book €89M ($108.8M) of writedowns in Italy, even as it swung back to a net profit of €153M in H1. BAML says investors likely will remain concerned about further writedowns, downgrading the stock to Neutral from Buy.
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PHO Description
The PowerShares Water Resources Portfolio (Fund) is based on the NASDAQ OMX US Water Index. The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index seeks to track the performance of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries.
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