Earth Day Water Stocks Sector Close – Up, Neil Berlant of the PFW Water Fund (PFWAX) Discusses Investing in Water
“Investing in the companies that produce equipment and offer processes that improve the quality of water and mitigate the impact of higher prices offers enormous potential for investment success”
DELTA, BC –April 22, 2009 www.Water-Stocks.com, an investor and industry portal for the water sector within Investorideas.com, presents investing in water, the second in a series of commentary and insight with Neil Berlant, Fund Manager of the PFW Water Fund (PFWAX).
With Earth Day bringing attention to cleantech and water issues, Water-stocks.com reminds investors of the issues and opportunities within the sector.
Q- Dawn Van Zant at Water-stocks.com
Neil, you have discussed in previous interviews how the cost of water will become a driving force in the sector moving forward. Can you give us some insight as to what the historical and projected costs look like and how that will impact both consumers and industry?
A- Neil Berlant of the PFW Water Fund
Water prices tend to be different region by region, community by community, and to some degree by quality. What is contributing to the doubling or tripling of the price that I am projecting is the enormous capital spending of communities and water districts that are associated with the required improvements to water infrastructure. There is a well-documented need of some $1 trillion dollars, over the next twenty years, to repair and replace the aging water infrastructure throughout the nation. There are some 59,000 water utilities in the US, all facing these necessary expenditures, varying region to region, but all with similar needs. None of what they have to spend money on goes to add new customers. Thus, only by raising the price of water will they be able to recover those required expenditures. Experience has shown that as the price moves up, water consumers attempt to conserve, thus exacerbating the problem. In my view, the rising price of water will dramatically alter the perceived value, and making the value of equipment that improves the quality of water and enables more efficient use significantly more valuable. In addition, as water costs more, consumers will demand higher-quality, or the belief that they are getting better quality. They will move in record numbers to use drinking water purifiers in their homes, increase their consumption of bottled water, and willingly accept higher costs if they believe they are getting more of value.
Q- Dawn Van Zant at Water-stocks.com
Based on water costs increasing how has that created new opportunities for smart metering, desalination and other sub sectors in the water industry. What do you see as some of the best opportunities to invest in and how does this influence your direction and strategy for your fund, The PFW Water Fund?
A- Neil Berlant of the PFW Water Fund
Higher prices for water have already begun to impact sales of equipment that is used for purification and efficient water use. In addition, there is a growing market for more efficient irrigation and water-sensing equipment. As the cost of water increases, communities are moving vigorously to add new and more efficient meters to monitor and price effectively the consumption of water. Many regions in the nation do not presently meter the consumption of water, but rather merely estimate consumption. One of the most exciting beneficiaries of the increase in cost that we anticipate is the improving competitive price of desalination to traditional municipal supply of water. As the cost of desalination falls, as it is, and the cost of water generally rises, as it its, the adoption of desalination processes is going to boom. For those reasons, investing in the companies that produce equipment and offer processes that improve the quality of water and mitigate the impact of higher prices offers enormous potential for investment success. The PFW Water Fund is focused on investing in the companies that are specifically addressing these areas of opportunity.
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Investing in Water Podcast RSS Feed: http://www.investorideas.com/Podcasts/water.xml
About Neil Berlant:
Fund Manager of the PFW Water Fund - PFW Water A (PFWAX)
Since 1968, Neil has been continuously involved in the investment banking industry, either as a principal, officer, or founder of several firms. He has supervised and initiated the publication of numerous investment research reports on the water industry and conducted conferences directed towards top corporate management, the investment community, and venture capitalists. He has been a speaker at conferences on topics ranging from financing, to business and investment opportunities in the water industry. In addition, he has consulted to Fortune 500 companies and participated in negotiations concerning mergers, acquisitions, and venture capital investments. He is quoted frequently in newspapers including the Wall Street Journal, The New York Times, Los Angeles Times, Investor's Business Daily, and is a frequent water expert on CNBC.
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Water Stocks Showcase Company: Wescorp Energy Inc. (OTCBB: WSCE )
Wescorp Energy Inc. is an Oil and Gas solutions provider focused on deploying its water remediation and environmental technologies that overcome tough operational challenges facing oil and gas operators today on a global basis. Wescorp's patented, highly scalable H2Omaxx microscopic aeration technology increase the recovery of oil and reduce the amount of hydrocarbons in the contaminated water to less than 0.001% or 10 ppm. Wescorp's H2Omaxx is economical and environmentally friendly eliminating the use of chemicals, filtration systems, high temperature systems and high pressure vessels.
Wescorp Energy Inc Showcase Profile Page: http://www.water-stocks.com/CO/WSCE/Default.asp
Wescorp Energy Inc Company Website: http://www.wescorpenergy.com/
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