Pall Corporation (PLL), Pentair, Ltd. Registered Share (PNR): Water, Water Everywhere; An Overlooked Investment Opportunity

Page 1 of 2

Editor’s Note: This post has been modified to better discuss Pall (NYSE:PLL)’s business model.

As common as water is and all the everyday uses it has, the taken-for-granted posture of most people keeps this crucial resource out of mind for seeking profits.

According to a Congressional Budget Office report created in 2002, the average annual investment in water and wastewater infrastructure is estimated between $11.6 billion to $20.1 billion for drinking water and $13.0 billion to $20.9 billion for wastewater systems. This study was based on a period between 2000 and 2019.

Pall Corporation (NYSE:PLL)

The Department of Homeland Security has a strong interest in preserving this precious resource. Drinking water has to be protected from harmful toxic substances, and wastewater systems have to be preserved to reduce the spread of disease.

An investment strategy that is specifically designed to focus on this is the First Trust ISE Water index fund. This is an exchange-traded fund that was created on May 11, 2007 and holds 37 stocks that are participants in water and wastewater industries. Below is a one-year price chart.

Demand and infrastructure

According to Boonsri Dickinson, who commented on water demand and supply on Smart Planet, in 20 years water demand will exceed supply by 40%. In her commentary are statements that 90% of the water supply is used to produce food and energy. The amount of water it takes to make a computer is 1.5 tons, and it requires 6 tons to make a pair of jeans. Water used in the production of goods has been coined “virtual water.” Factors such as population growth and climate change are cited behind this demand increase.

Affecting the wastewater side of this concern are extreme weather events that are impacting systems and resources used to combat the spreading of disease. The increasingly unpredictable global weather patterns are straining these systems. The need for increased infrastructure investment to build new facilities and strengthen existing ones is prevalent.

Capitalizing on this trend

As you can see above, there are plenty of reasons to consider the First Trust ISE Water index fund as a packaged investment focused on this perceived dilemma. One of the stocks held in this ETF is Pentair, Ltd. Registered Share (NYSE:PNR). Pentair, Ltd. Registered Share (NYSE:PNR) is a Swiss industrial company that manufactures equipment and systems for water and other fluids on a global scale. One of the operating segments, water and fluid solutions, is dedicated to this long-term demand. Pentair, Ltd. Registered Share (NYSE:PNR) recognizes this upcoming crisis and is committed to increasing access to water on a global scale by doing more that producing superior products and industry expertise.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!