By the way it also helps to have an excellent attorney. This is why
again and again I refer readers with legal or tax concerns to Joe Cox
at Cox and Nici. You can learn more about Joe Cox
Second look for crumbling systems. We have looked again and again at
investing in municipality water systems which are caught between the
hard spots of increasing supply and aging systems.
This is why we have been looking at Insituform Technologies, Inc. a
leading worldwide provider of proprietary technologies and services
for rehabilitating sewer, water and other underground piping systems
without digging and disruption. You can see what we originally wrote.
Recently Insituform earnings reports show that quarterly net income
increased in the last year to $4.3 million, from a net loss of $6.6
million, in the fourth quarter a year ago.
For 2005, net income was $13.2 million compared to $0.6 million, in
The increase came mainly from the company’s core rehabilitation and
Tite Liner® segments, which helps repair crumbling water systems.
Consolidated revenues for the fourth quarter of 2005 increased 14.5%
to $146.0 million from $127.4 million in the prior year quarter. For
the year, revenues increased 9.7% to $595.3 million from $542.6
million in 2004.
The share price of Insituform has risen from under $17 to $26 since
we first looked at them November 3, 2005 five months ago.
More information about the company can be found on its Internet site plus there is a good article on the company found in THE ST. LOUIS BUSINESS JOURNAL.
Learn more about how to develop investing philosophies and investing
in water. Join Merri, Thomas Fischer of Jyske Bank and me at our
next International Business and Investing Made EZ course in North
Finally look for shifts of utility in crumbling systems.
Take Ecuador’s railroad as an example. After the civil war ended in
1905, a railroad was built as part of a dream to unite
Ecuador by train. The goal was to connect Quito, the capital, with
Guayaquil, the major port. When built, the track was a technical
masterpiece that challenged the Andes. The worse part, known as
Devil's Nose, is a steep run that could only be mastered by
switchbacks. Now Ecuador's system has totally crumbled and has no commercial use
at all. Yet the last Devil's Nose portion of the track is still
running. It still makes money!