jump to navigation

Air Products & Chemicals (APD) or Pentair Inc. (PNR) for the thirsty proletarian? April 19, 2006

Posted by deminvest in growth stock, investment, Single stocks, stocks.
trackback

No no, fellow proletarians, I am not talking about beer. I am talking about drink-water, the liquid that our wives and children do need to drink when they are thirsty and have finished the soda reserve. I read many catastrophic articles, explaining water will be the "liquid gold", or more simply the most valuable resource, of next century.I don't really understand why I should take shorter showers causing the water to flow into the sea trough the river instead of flowing to the sea trough my shower than trough the same river. I don't understand how my shorter shower could help a poor thirsty person living in India, but there is something I do understand: India and China and many other third world countries are getting rich, are increasing their population (not China) and will not have enough fresh water in the future.
That is how we get to Air Products & Chemicals (APD) or Pentair Inc. (PNR): those companies build products that help to filter and clean waters.
APD looks better than PNR from dividend yield point of view (APD has about 2% and PNR has 1.4%). They have similar P/E: APD Trailing P/E 21.68 Forward P/E 17.80, compared to PNR Trailing 22.41 Forward P/E 16.16. PNR has more to do with water and it has a faster growth:
PNR Qtrly Revenue Growth (yoy): 12.40% Qtrly Earnings Growth (yoy): 7.90%
APD Qtrly Revenue Growth (yoy): 5.40% Qtrly Earnings Growth (yoy): 8.30%
I will now look at their websites http://www.airproducts.com/index.asp and http://www.pentair.com/ to make a decision. I am trying to invest on water and both companies have “air” in their names. I am investing on water and the word water is impossible to find in the website of ADP, so I will this time go with PNR, because of higher revenue growth and because of the fact that they say on their (horrible) website that water treatment is their core business.

I am going to place an order for  1000$ worth of PNR, then I will send them an email telling them their website sucks. Let the force be with us fellow proletarians!

P.S.

from now on I will be a proletarian able to drink a glass of water instead of a beer every now and then 

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: