Long time readers of this letter know well that I have been a big fan of the water play (click here for my last report).
The world is rapidly running out of fresh water, possible within five years. The issue is so serious that both the Defense Department and the Central Intelligence Agency have made water a top policy issue. Think water wars. Water infrastructure is already a $400 billion a year industry, and that is expected to grow by 6%-7% a year for the next several years.
The US alone accounts for $120 billion/year of this, and treatment of American wastewater is expected to become a major new industry. So I am putting out some new names in the sector to watch. They include ITT Corporation (NYSE:ITT), Danaher (NYSE:DHR), Nalco Holdings (NYSE:NLC), and Veolia Environmental (VE). You can also try the water ETF, the PowerShares Water Resources Portfolio, (NASDAQ:PHO).