The same so called investment company that downgraded AWR in Feb to SELL now 2 months later upgrades AWR today. Tell me that there was no insiders in that company that didnt buy when it plunged from $47 to $38 after their downgrade and now they upgrade and make some profits. Conspiracy theory? Maybe yes, maybe no. Thats why I always buy more after some dumb #$%$ downgrades water stocks. Look at the idiot Cramer saying to sell AWK at $50 and now its $74.
That is the question many are asking. AWR like all companies must budget for CapEX spending for infrastructure improvements, and they are doing. AWR has been budgeting to replace old pipes one pipe at a time. You can learn about their progress from their website as they have provided many presentations on how they plan to improve their water supply and grow contracts.
I believe the greater threat to their business was the drought in California. The firm boasts of significant water usage reduction during the drought. The region received far above average rainfall this year, and the drought conditions are improving.
As with any company there are risks involved. The business model for AWR is very stable and reliable one. The barriers to entry into their business are enormous. I like their position.
AWR has been in the process of making a bottom after selling off from the all-time high of $47.24 on February 19. The stock has been trading under $40 since mid-March and bouncing around between $38 and $40 for the better part of the month. On Friday, AWR closed over $40 since March 16. Does this mean AWR has made a bottom? Is is through trading under $40? Will we get another chance to buy under $40?
Nobody knows the answer to these questions. However, we do know that the price today is much more attractive than back in February when AWR was trading over $45. I have been adding under $40 as I believe the stock is undervalued at those levels.
Long term, this stock is a great hold for a retirement portfolio.
AWR is pretty transparent, and you can find plenty of information from their website.
Here is one I found:
Invest in your community. Over the last two years, Golden State Water Company
(our utility subsidiary) spent $160 million on upgrading its water and electric
infrastructure and American States Utility Services (our contracted services
subsidiary) spent $142 million constructing and renewing water and wastewater
systems for the nine military bases we serve. In 2015, Golden State Water Company
alone expects to spend $85-$95 million of capital expenditures, including $7 million
for its electric division, Bear Valley Electric Service. That means new pipes and
power lines, but it also means new construction jobs—
"Is the dividend safe"?.....Slow down there Turbo. This company hasnt missed a dividend for like 60 years! I think you are over reacting. Missed by a bunch?....6 cents is a bunch? I see it as a buying op.
The main gist of the shortfall was that Californians are not using as much water?
I live in California and we were instructed by government to use 20% less water in 2015 than 2014.
Many of us used less water, and comtinue to use less water.
Who did not see that coming?
Investors were not impressed with conference call and EPS report as the stock cratered 7%!
The analysts did a terrible job of asking any probing questions.
The CEO Robert Sprowles kept referring to "Triple A rating" and increasing dividends.
He said construction is now getting going.
But, I am more concerned with revenue growth than CapEx.
I will keep my investment here for now. But, will scrutinize this company more closely going forward.
As investors shouldn't we expect execution, and not excuse-making?
It sounded like "The dog ate my hoomework" from the CEO...
AWR missed by a bunch. The stock is selling off with strong volume.
How did management botch this one?
Is the dividend is still safe?
I must listen to the conference call to assess my investment here.
This is a red flag for me...
This is a long term hold and not a trade for my portfolio.
The stock got way ahead of itself at $47 based on the news from Flint, Michigan.
I felt more comfortable buying around $40, and may add again in the $30's.
The stock is currently trading at the same price as 15 months ago.
That is a pretty nice pullback and a buy opportunity.
I have no doubts this will be a profitable equity for my portfolio in the long run.
I made up the loss with NBR and C. I bought TEVA today, at a 2 week low. Hope I didn't
make the same mistake again like AWR, trying to bottom fish.
Well I sold for a loss. Disappointing that it couldn't go up on no rate hike. I guess I made another
I bought NBR, we'll see how that goes. Maybe oil will keep going up.
I have owned water stocks since the mid 90's. I still have every stock from AWK and AWR that I ever bought. Right now I have a position in AWR that I am down in. First time this has happened. Dont panic, these water stocks get downgraded at least every year. Cramer said that AWK was no longer a profitable stock to own..... couple months later and it hit all time highs. People still need water!