This from Martin:

I’m drinking on the job again.

No, not that kind of drinking. I’m swigging away from a one liter bottle of fresh water. Like most folks, I thought nothing of it when I bought it. I took its availability for granted, even though it’s that cool Voss stuff all the way from Norway.

But sadly, that’s not the case for approximately 40% of the world’s population, which lacks adequate fresh water supplies. What’s more, the United Nations says that two out of three people will be living in areas under “water-stressed” conditions by 2025.

Water shortages currently affect 80 countries and within 50 years, more than half the global population will be living with water shortages.

But hang on a minute… isn’t 71% of the Earth’s surface made up of water?

Yes, that’s true. But 97.5% of it is seawater, leaving just 2.5% that is drinkable. And only about 0.1% of all water is readily available. Most of it is locked up in glaciers, groundwater, and soil.

And water supply problems are only going to get worse… which opens up some very good investment opportunities.

Here’s the deal…

More People = More Pollution = Less Water

In 1900, there were about 1.6 billion people on Earth. Today, there are 6.5 billion. By 2025, the world population is expected to rise to 9 billion.

But here’s the problem: During the 20th century, human water consumption swelled six-fold and global water demand already exceeds supplies by 17%, according to the Population Institute.
And World Bank figures show that demand is doubling every 21 years. By 2020, the two billion extra people will require 20% more water than is currently available, according to the International Food Policy Research Institute.

And speaking of food, global population growth leads to increased industrialization and pollution. U.S. energy production requires about 40% of fresh water withdrawals. And the fact that people are also living longer means not only less drinking water, but also less water available for food production.

Crop production already claims 65% of fresh water, compared to 25% for industry and 10% for households. There is 7,000 liters (1,900 gallons) of water used for one kilogram of grain-fed beef… 5,000 liters (1,300 gallons) for one kilo of rice… and 1,500 liters (400 gallons) for one kilo of corn, according to the U.S. Geological Survey.

The point is… when it comes to water needs, it doesn’t matter one iota what the economy or stock market is doing. Every single person on the planet needs water… period. And with H2O in shorter supply, the world is set to invest approximately $800 billion over the next decade in order to improve the situation. This is the time for smart investors to run with this opportunity…

The China Problem

For all the talk of federal budget plans, economic bailouts, stimulus packages and all the other dizzying (and often demoralizing numbers), money is no object when it comes to satisfying the world’s water needs.

Put bluntly, no water = no people. Certainly no need to worry about the economy, unemployment, the real estate and auto industry debacles, or anything else if you’re not actually alive!

Of that $800 billion number I just mentioned, China has set aside $200 billion for its water infrastructure over the next decade. It makes the U.S. government’s $8.4 billion look like small potatoes in comparison – and woefully inadequate. The Environmental Protection Agency forecasts that the U.S. will have to spend $277 billion on water infrastructure by 2019. Nevertheless, China has some serious problems…

Two-thirds of the country already faces water shortages. Its annual water shortage is 40 billion cubic meters and it uses 30 more cubic kilometers of water than is replaced by rain.

Of its 1.3 billion people, 300 million don’t have access to clean drinking water.

According to Summit Global Management, “75% of China’s drinking water is unsuitable for drinking and cooking, and 80% of China’s seven major river systems no longer support fish.”

What’s worse is that at the current growth rate, China’s population is doubling every 12 years. More people = more food/drink needs = more agriculture development and industrialization = more pressure on water supply and demand.

So what’s the solution?

Thirsty For Profits? Try These Water Stocks…

Let’s kick off with a broad investment option. Because of their increased flexibility, lower costs, and the fact that they trade like stocks, I like ETFs (exchange-traded funds). With water, you can go for…

~ PowerShares Water Resources (NYSE: PHO), which tracks the price and yield performance of the Palisades Water Index. The fund includes big water companies like Veolia Environnement (NYSE: VE) and Ameron International Corp. (NYSE: AMN)

~ Claymore S&P Global Water Index Fund (NYSE: CGW), whose results aim to replicate the performance of the S&P Global Water Index. Like PHO, it holds Veolia and Aqua America Inc. (NYSE: WTR), plus Danaher Corp. (NYSE: DHR) and Severn Trent in England.

Breaking it down, Paris-based Veolia is one of the biggest water infrastructure stocks and is split into four groups: Water, Environmental Services, Energy Services, and Transportation. Click this link for a more detailed company profile and rundown of its water management operations – it has a very broad reach in the industry. With a P/E ratio of just 9, it’s trading at a hefty discount and coughs up a fat 15.8% dividend yield ($3.12 per share annually), too.

Aqua America’s fourth quarter revenues rose 7%, resulting in 3% earnings growth. With an aggressive acquisition policy that has seen the firm tie up more than 100 buyout deals over the past few years, it has boosted its customer base from 245,000 in 1992 to 950,000 today. It applied for $80 million worth of price increases last year, with $61 million approved. This resulted in a 10% revenue increase in 2008 and a 15.7% profit margin. It pays a 2.8% dividend.

There’s another option, too…

Salty Solutions

The National Academy of Sciences recently stated, “Desalination is a realistic option for increasing water supplies.”

In fact, global spending on desalination is set to more than double in four years in an attempt to boost the 11 billion gallons of drinking water that the process currently creates every day. That’s because even that hefty-sounding number still only represents 1% of water usage.

But desalination capacity is about to surge by 45% over the next seven years, producing an extra five billion gallons of water per day. And with 1,200 desalination plants worldwide, the cities of Las Vegas and San Diego (based in two states suffering some of the most severe water shortages in the U.S.) are discussing plans to build new plants themselves.

Yes, desalination is an expensive, energy-intensive process. But there’s one company that is attempting to solve it by not only producing clean water, but also recovering and recycling as much energy and waste as possible. It just signed a deal with China’s largest plant, too.

My colleague Marc Lichtenfeld, who’s as bullish as I am on the water industry and water stocks, added this small-cap, fast-growing company to the Xcelerated Profits Report portfolio last month. And just this week, he added another water-based company, whose shares are up around 230% over the past 18 months. Sales are continuing to rise – and demand for its products is red hot. It’s also active in China.

Boy, after all that, I’m really thirsty now. So while I find some more water, here’s what I’d like you to do. While I can’t reveal the names of those two water stocks that Marc recently added to our portfolio, what you can do is check out how you can become a member yourself. Go here for full details on the Xcelerated Profits Report. And if you like what you see, click this link to start profiting right away.

Water is critical. We can’t live without it. But with population growth, pollution, industrial expansion, and climate change resulting in shorter supplies as demand continues to rise, it’s no wonder governments around the world are pumping billions into the industry for infrastructure improvements. And water stocks could be one few areas that could truly benefit in this wretched global economy.

Source: Water Is The World’s Most Critical Commodity… Here’s How You Can Profit From It

I’m not sure about death, but the broader U.S. economy is like a 2:00 A.M. drunk, continuing to stumble towards the end of a mind-altering 2008, with little long-term relief in sight. Will it ever find its way home again?

One of President-elect Barack Obama’s most ambitious and large-scale plans quite literally seeks to dig America out of this mess – and here’s how you can profit, too. But you’d better act fast. Some of Wall Street’s big boys are already placing their bets.

The Eisenhower Model

Obama will take the oath as 44th president of the United States on Jan. 20.

Since his Nov. 4 victory, the more he’s said about “getting to work immediately” and having “no time to waste,” the more I think the inauguration ceremony will be a time-consuming inconvenience, distracting him from fixing America’s problems.

One key area in which he’s pledged to spend his way out of the mire is by tackling the country’s aging and rapidly deteriorating infrastructure. He plans to make the largest investment to repair and upgrade the country’s public works systems since Dwight Eisenhower spearheaded the nationwide interstate highway system in the 1950s.

In short, this means utility industries like electric and water will receive huge cash infusions. Roads and bridges will be repaired and rebuilt. Schools will be modernized, part of which will include improving Internet access to a nation that ranks 15th in the world in broadband adoption. Energy efficiency, particularly in government buildings, will be increased. The healthcare industry will make greater use of technology to streamline and computerize medical records to cut costs.

That’s the plan anyway. And Obama says it will create 2.5 million jobs by 2011.

Obama’s economic brain trust is currently “busy working, crunching the numbers… to determine what the size and scope of the economic recovery plan needs to be. But it’s going to be substantial.”

Kind of vague right now, I know. But just yesterday (Thursday), one of his advisers floated a dollar figure of $850 billion. In terms of infrastructure upgrades, 5,000 road and bridge projects could get under Caterpillar Digs Deep into the Developing World for Profit way immediately after Obama puts his autograph on the bill.

Brick By Brick… Bridge By Bridge

With U.S. infrastructure set to have a sweaty wad of cash lobbed in its direction, construction firms are lining up to grab a share of the spoils, particularly as the need for equipment and raw materials rises.

Appropriately, we start in Obama’s home state of Illinois, which is also home to the world’s largest manufacturers of construction and mining equipment, engines, and industrial turbines. Founded in 1986 and based in Peoria, Caterpillar (CAT) has seen its shares shoot up from $37 to over $45, as the company feeds off the infrastructure buzz.

One of Caterpillar’s fellow Illinois-based construction equipment manufacturers, Deere & Company (DE), could also be set to extend a share price boost that has seen the price surge from the upper $20s on November 20 to over $39 today.

If you want a more diversified way to play the industrial and construction sector, take a look at the Industrial Select Sector SPDR (XLI) exchange traded fund (ETF).

On the engineering front, head west and look no further than California’s Jacobs Engineering Group (JEC), which is the largest publicly traded engineering firm in the U.S. The infrastructure love is spreading across the sector, as the stock shot up on news that it has secured two more contracts…

1. A five-year, $17.5 million contract from the Peninsula Corridor Joint Powers Board that will see Jacobs serve SamTrans and the San Mateo County Transportation Authority agencies to work on three programs. This includes project management, scheduling, budget management, and more.

1. A contract from Pima County, Arizona to provide project management and construction inspection services for the Ina Road water reclamation project. Construction costs here will total about $200 million.

Jacobs pulls in a whopping $11 billion annually and employs more than 57,000 workers – a number that could grow under Obama’s bold plan.

Speaking of water, if you’re looking to cash in on this critical industry amid a surging global population, increasing pollution, and a depleting, finite amount of water resources, check out leading firm Watts Water Technologies Inc. (WTS) or the sector ETF, PowerShares Water Resources (PHO), which tracks the price and yield performance of the Palisades Water index.

Be sure to also pay a visit to our own free Smart Profits Report research section, where you can read much more about the water problems facing the world – and the vast profit potential that the industry holds. We’ve got two in-depth (pun intended) water reports up there.

Get Raw

On the raw materials side, several firms spring to mind as potential winners of the Obama infrastructure initiative. And as Jim Cramer might say, they’re “best of breed” in their industries.

• Cement: South of the border – in Garza Garcia, Mexico, to be exact – you can find Cemex SAB de CV (ADR: CX), a world leader in producing, distributing, and selling cement. And when it comes to infrastructure rebuilding and repairs, you don’t get many more commodities more important than this one. Its market cap of almost $8 billion is evidence of this.

• Steel: Talk about a liftoff. U.S. Steel Corp. (X) shares have surged from the mid $20s on November 20 to a current price around $37 a share.

• Copper: Copper hit a 52-week high of $127.24/ton on May 21, 2008. The price now sits around $20/ton. Quite a slump for what is the largest publicly traded copper producer, Freeport-McMoRan Copper & Gold Inc. (FCX). You can blame the prolonged commodities sector slump for that, in addition to the stock market’s woes. But in an Obama-fueled, infrastructure rebuilding rampage, I’m betting on a resurgence.

• Aluminum: Go large. The leader here is Alcoa Inc. (AA). Like FCX, Alcoa has endured a rocky year. Having traded at a 52-week high of $44.77 in May, the stock market’s tank job has whipped this stock into submission. Shares are currently trading around $10 and with a 0.37 Price/Earnings-to-Growth (PEG) ratio, the market thinks it’s ridiculously undervalued.

The bottom line here is that companies like these could all stand to profit from a huge ramp up in infrastructure spending. What’s more, they’re all solid, well-established, industry-leading firms with strong cash positions, doing business in areas where there are clear, critical needs. If you’re looking for outperformers, infrastructure stocks are set up well for 2009.

From Eisenhower To Obama …The Firms Poised To Cash In On The New U.S. Infrastructure Revolution

This from Smart Profits Report:

Six weeks from today, Barack Obama will take the oath as 44^th president of the United States.

Since his election victory, the more he’s said about “getting to work immediately” and having “no time to waste,” the more I think the inauguration ceremony will be a time-consuming inconvenience, distracting him from fixing America’s problems!

One key area in which he’s pledged to spend his way out of the mire is by tackling the country’s aging and rapidly deteriorating infrastructure. He plans to make the largest investment to repair and upgrade the country’s public works systems since Dwight Eisenhower spearheaded the nationwide interstate highway system in the 1950s.

In short, this means utility industries like electric and water will receive huge cash infusions. Roads and bridges will be repaired and rebuilt. Schools will be modernized, part of which will include improving Internet access to a nation that ranks 15^th in the world in broadband adoption. Energy efficiency, particularly in government buildings, will be increased. The healthcare industry will make greater use of technology to streamline and computerize medical records to cut costs.

That’s the plan anyway. And Obama says it will create 2.5 million jobs by 2011. But we want profits. Read on to find out how you can grab some…

It’s The Economy, Stupid… Six Weeks Away From $500 Billion Rescue Plan

Obama’s economic brain trust is currently “busy working, crunching the numbers… to determine what the size and scope of the economic recovery plan needs to be. But it’s going to be substantial.”

Kinda vague right now, I know. But early estimates put the economic recovery bill at $500 billion. In terms of infrastructure upgrades, 5,000 road and bridge projects could get underway immediately after Obama puts his autograph on the bill.

Here are some investments that could revel in the building boom…

Brick By Brick… Bridge By Bridge

When the U.S. infrastructure sets to have a sweaty wad of cash lobbed in its direction, construction firms are lining up to grab a share of the spoils, as the need for equipment and raw materials rises.

Appropriately, we start in Obama’s home state of Illinois, which is also home to the world’s largest manufacturer of construction and mining equipment, engines, and industrial turbines. Founded in 1986 and based in Peoria, Caterpillar (NYSE:CAT) has shot up from $37 to over $43 over the past five trading days, as it feeds off the infrastructure buzz.

One of Caterpillar’s fellow Illinois-based construction equipment manufacturers, Deere & Company (NYSE:DE), could also be set to extend a share price boost that has seen the price surge from the upper $20s on November 20 to over $38 today.

If you want a more diversified way to play the industrial and construction sector, take a look at the ETF, the Industrial Select Sector SPDR (NYSE:XLI). ETF’s are a smarter investment choice in a rollercoaster market; our Guest Editorial on Good ETF Investments tells us why.

On the engineering front, head west and look no further than California’s Jacobs Engineering Group (NYSE:JEC), which is the largest publicly traded engineering firm in the U.S. The infrastructure love is spreading across the sector, as the stock shot up today on news that it has secured two more contracts…

1. A five-year, $17.5 million contract from the Peninsula Corridor Joint Powers Board (JPB) that will see Jacobs serve SamTrans and the San Mateo County Transportation Authority (SMCTA) agencies to work on three programs. This includes project management, scheduling, budget management, and more.
2. A contract from Pima County, Arizona to provide project management and construction inspection services for the Ina Road water reclamation project. Construction costs here will total about $200 million.

Jacobs pulls in a whopping $11 billion annually and employs more than 57,000 workers – a number that could grow under Obama’s bold plan.

And speaking of water, if you’re looking to cash in on this critical industry amid a surging global population, increasing pollution, and a depleting, finite amount of water resources, check out leading firm Watts Water Technologies Inc. (NYSE:WTS) or the sector ETF, PowerShares Water Resources (NYSE:PHO), which tracks the price and yield performance of the Palisades Water index.

Be sure to also pay a visit to our own free Smart Profits Report research section, where you can read much more about the water problems facing the world – and the vast profit potential that the industry holds. We’ve got two in-depth (pun intended) water reports up there. An earlier issue titled, The Water Industry analyzes how the economics of this increasingly scarce commodity are shaping our world.

Get Raw

On the raw materials side, several firms spring to mind as potential winners of the Obama Infrastructure Initiative (I just made that term up). And as Jim Cramer might say, they’re “best of breed” in their industries.

Cement: South of the border – in Garza Garcia, Mexico, to be exact – you can find Cemex (NYSE:CX), a world leader in producing, distributing, and selling cement. And when it comes to infrastructure rebuilding and repairs, you don’t get many more commodities more important than this one. Its market cap of almost $8 billion is evidence of this.

Steel: Talk about a liftoff. U.S. Steel Corp. (NYSE:X) shares have surged from the mid $20s on November 20 to a current price around $37, having enjoyed its biggest daily jump in almost 20 years on Monday.

Copper: Its 52-week high on May 21, 2008 was $127.24. Its price now sits around $20. Quite a slump for what is the largest publicly traded copper producer, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). You can blame the prolonged commodities sector slump for that, in addition to the stock market’s woes. But in an Obama-fueled infrastructure rebuilding rampage, I’m betting on a resurgence here.

Aluminum: Go large. The leader here is Alcoa Inc. (NYSE:AA). Like FCX, Alcoa has endured a rocky year. Having traded at a 52-week high of $44.77 in May, the stock market’s tank job has whipped this stock into submission. Shares are currently trading around $9.50 and with a 0.37 PEG ratio (Price/Earnings-to-Growth), the market thinks it’s ridiculously undervalued.

The bottom line here is that companies like these could all stand to profit from a huge ramp up in infrastructure spending. What’s more, they’re all solid, well-established, industry-leading firms in strong cash positions, doing business in areas where there are clear, critical needs. If you’re looking for outperformers, infrastructure stocks are set up well for 2009.

Source: From Eisenhower To Obama… The Firms Poised To Cash In On The New U.S. Infrastructure Revolution