Global Water Resources (GWR.TO)

Water is obviously important, particularly in the US. Thinks this is located in Arizona, and has quite a lot of permits. The chart is an improving one.

A resource company for Phoenix, so a highly concentrated business. Phoenix itself is growing and coming out of the recession. Business is good. They are paying a very solid regular dividend, and are paying a special dividend of about $1. Effectively it is a utility, highly concentrated, but you are in a sweet spot of the market right now. They are smart enough to reward investors when times are good.

Not a well followed company. They were able to get a deal in Arizona, just before the financial 2007 financial crisis, to hook up connections in a bunch of new subdivisions. The Phoenix market was one of the most heavily hit so they didn’t have any connections. Now connections are starting to come through so the numbers are ramping up. Typically water utility maintenances are a large cost. Because this company’s infrastructure is almost brand-new, their maintenance costs are very low. Just announced a dividend and expects it will be increased. Stock pulled back a little, and this would be a good entry point.

Has been an orphan. He has a small position. He likes the story. They got a bit ahead of themselves with the housing crash. They are not getting some traction. Seeing revenues and earnings coming up. Expects them to initiate a dividend fairly soon, over the next couple of quarters. Quite a bit of upside left in this stock.