As per my last message, the lid on PNR at the 200 SMA remains intact. It's interesting when you look at the 1 year chart, after they disappointed with Q2 '05 it dropped below the 200 SMA and has not been able to get above it since. We need a good quarter and good guidance or its back to the low 30's. If we get good guidance and a decent quarter it can break through the 200 SMA and I think it could go to 45 before hitting resistance there. Either way, I don't see it staying put around 38 and I will be moving on if they disappoint again and prove they can't get their act together. Simply put, there will be better places to deploy the capital if they blow it again this quarter and don't guide higher. Best of luck.
Hmm. WTS looks intriguing. Maybe a buying opportunity in the future. SZE looks like a product of hype to me, though. Too much flavor of the week. It's hard to tell how much of the recent movement by water stocks is a result of the publicity in the financial news, much of which is probably a result of the water-related natural disasters and drought. I agree that water is a great long term play, but I want to find the right companies with the right entry points. Right now, most of my marbles are with PNR, with a few in SXC.
I'll take a look. I've been looking for water stocks and ran across a newsletter, found at http://www.uswaternews.com/winnewsletter.html. It always plugs at least one stock. I don't know if the newsletter is compensated for the plug, but it does provide some in depth reporting about the profiled stock. And they have a group of water stocks that they track in a model portfolio. I look for their watch list -- who's added and who's dropped. PNR was added a few months ago. That's why I first bought. I am also in SXC for the same reason. My holding in that stock is up 14%.
After the earnings announcement, the move down will most likely be fast and furious (as it was the last 2 quarters) if they don't beat the concensus estimates. If the move is to the upside on good news, the climb will probably be more steady. I'm still long half my position initiated just after the carnage from Q3, but if I was looking to add to this position, I would not get in front of earnings. This management team needs to prove they have their act together. All IMHO.
Do you think this stock is a good long term play??? Say 5 to 10 years??? I invested in it a couple of months ago thinking the water sector would be the next big commodity with the growth in Asia and lack of facilities to treat water over there.