06-12-2015, 02:26 PM
Can't really help you with the others but WTR was one of my first purchases in North America and I've been very happy with them. Extremely satisfied with what the management is doing, constant small aquisitions that add more customers and thus help to bring up the EPS in a regulated market. Also really optimistic about their infrastructure renawals as they are getting a lot of tax benefits from those in certain states... still not exactly free repairs but not far from it. And new infra always means less maintenance cost and better service for customers. So basically: improving service & reducing maintenance costs and having someone else pay for it.
I do think the current shareprice is a little high and for that reason I haven't added to my position recently. There simply won't be any big increases in EPS but it does keep creeping up slowly. That is fine by me but the current PE of 19 and div. yield of 2.60% are more fitting for a company with more growth potential. Many people seem to think that utilities will be taking a dive when the eventual interest rate increase by the FED happens, that might be a better opportunity to get into WTR.
Also keep in mind that they do have a share repurchase program but still their # of outstanding shares does seem to be increasing rather than decreasing. 2 simple reasons for this: Firstly the company isn't really using much of the already approved buybacks simply because the valuation is too high and secondly because part of the DRIP program's shares are newly issued ones instead of them being bought from the market.
Long story short: great company but in my opinion it's too expensive at the moment.
I do think the current shareprice is a little high and for that reason I haven't added to my position recently. There simply won't be any big increases in EPS but it does keep creeping up slowly. That is fine by me but the current PE of 19 and div. yield of 2.60% are more fitting for a company with more growth potential. Many people seem to think that utilities will be taking a dive when the eventual interest rate increase by the FED happens, that might be a better opportunity to get into WTR.
Also keep in mind that they do have a share repurchase program but still their # of outstanding shares does seem to be increasing rather than decreasing. 2 simple reasons for this: Firstly the company isn't really using much of the already approved buybacks simply because the valuation is too high and secondly because part of the DRIP program's shares are newly issued ones instead of them being bought from the market.
Long story short: great company but in my opinion it's too expensive at the moment.