Water Stocks: A Few of My Favorite Things, Part I

Water ? I?ve been urging my subscribers to invest in water stocks for several years…and Hyflux is one of my favorites. Hyflux (HYFXF: OTC Bulletin Board) operates in China, Southeast Asia, India, the Middle East and North Africa. It is involved in a variety of water projects, from desalination to recycling. It was among the first stocks ever recommended in my investment service, Mayer?s Special Situations, when I launched the ?Blue Gold Portfolio? back in the summer of 2006. Since I recommended it, Hyflux is up 75%, while the S&P 500 is down 10%. Recently, the company posted a fresh earnings report that showed record results. Hyflux announced net profits of $53 million ? a record high and a 27% increase from the year prior. The order book also grew 20%. It generated solid cash flow and maintained a good balance sheet with $120 million in the bank. Below is a chart I like from the latest earnings presentation. It shows you the growing order book broken down into two categories. ...