What if you turned your faucet on and no water came out? Are you and your family prepared for such an emergency? The FDA recommends a minimum emergency supply of one gallon of water per person per day for three days to be used for drinking, cooking, and personal hygiene. I personally think three days is not adequate. Think Flint.
The FDA considers bottled water to have an indefinite shelf life if it is produced in accordance with regulations and remains unopened. Expiration dates on bottles are voluntary, and may reflect concerns for taste and odor only, but are used mostly for stocking and distribution purposes. Store bottled water at room temperature or cooler, out of direct sunlight and away from solvents and chemicals. If stored in sunlight, algae may form and if stored near solvents, the water may absorb the chemicals smell.
(September 2013 Drinking Water Research Foundation) In the United States, the Environmental Protection Agency (EPA) develops and maintains drinking water regulations for 276,607,387 people served by 54,293 community water systems. The quality of drinking water is monitored and regulated by federal, state, and local agencies.
Researchers estimate that more than 500 boil alerts occurred in the U.S. in 2010. (Brigano F.A., Ph.D. and Burke T. A. When is the Next Boil Water Alert?) The Center for Disease Control and Prevention (CDC) reported that waterborne diseases, such as Cryptosporidiosis and Giardiasis, cost the U.S. healthcare system as much as $539 million a year in hospital expenses. (Centers for Disease Control and Prevention, Waterborne Diseases Could Cost over $500 Million Annually in U.S.) In 2006, EPA researchers reported an estimated 16.4 million cases of acute gastrointestinal illness per year are caused by tap water. ( Messner, M., Shaw, S., Regli, S., Rotert, K., & Soller, J. Journal of Water and Health)
I live in an area of extreme weather risks from tornados to severe snow storms. We have gone days without electricity. It has become second nature to keep prepared for these emergencies by having a stock of bottled water and some non-perishable foods on hand. And toilet paper, but that’s another story.
There are two ETF’s in the water sector that I have been monitoring. I like the returns on FIW (First Trust ISE Water ETF). YTD they are 18.51%. It has an overbought signal at this time and is trading at 35.63. Perhaps it will have a pullback, especially in today’s market. The other one I like is CGW (Guggenheim S&P Global Water ETF). YTD returns are 7.92. It also is flagging overbought. This morning it is up 0.27% and trades at 29.30.
Truthfully, I’ve had AWK, WTR, MSEX, and SJW on my watch list. Each one of these companies has an issue or two that makes me hesitant to trade them today.
SJW Corp came in with its earnings report yesterday. SJW Net income was $3.4 million for the quarter ended March 31, 2016, compared to $4.7 million for the same period in 2015. Diluted earnings per share were $0.16 and $0.23 for the quarters ended March 31, 2016 and 2015, respectively. The estimated earning was $0.21. They are getting crushed this morning down -10.30%. I still like this company. Not only do they offer water services, through its subsidiary, SJW Land Company, it owns undeveloped land in California and Tennessee; owns and operates commercial buildings in California, Arizona, and Tennessee; and holds a 70% limited partnership interest in 444 West Santa Clara Street, L.P., a real estate limited partnership that operates commercial building rentals.
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Good read