PHO

noseeds99 · #1 05-05-2007, 03:20 AM

hi all,

I just started investing. Put 20K into two different vanguard funds. Im looking to invest probably 10K more half in stock and half in another fund. My pops has recomended this water company PHO. Any thoughts on if this is good or what? Despite being a finance major, I suck at the stocks, maybe go to class more? thanks

gull · #2 05-05-2007, 04:04 AM

I would not take recommendations from your pops. Use the logic that guided you to Vanguard index funds and continue to invest in those. They are much safer.

noseeds99 · #3 05-05-2007, 06:43 AM

do you not like the stock? if so, what rationelle makes it bad? if riskiness is all the matters I like the risk and I am very young so risk is good right?

scott1 · #4 05-05-2007, 09:18 AM

PHO isn't a company. Learn about what it is, why you would want to invest in it.

spino1i · #5 05-05-2007, 12:23 PM

PHO is a water index fund. I dont know much about the water sector as a whole or how its doing, so I cant really comment. It probably isnt doing that great though, because of the housing sector slowdown thats going to be happening in the coming year.

If you want to invest in single companies, find the best companies PHO indexes and put your money there. Individual companies are much easier to analyze that sector index funds..

AvivaSimplex · #6 05-05-2007, 02:08 PM

IMO water is a terrible sector to invest in. Yes, certain areas are going to experience severe droughts in the future. This will not result in windfall profits for the water companies. They are heavily regulated and will likely not be allowed to raise prices fast enough to keep up with infrastructure demands.

OTOH, if you found a company that was not a utility but a tech company developing a great new desalinization method, that could be a screaming buy.

DcifrThs · #7 05-05-2007, 03:25 PM

[ QUOTE ]
IMO water is a terrible sector to invest in. Yes, certain areas are going to experience severe droughts in the future. This will not result in windfall profits for the water companies. They are heavily regulated and will likely not be allowed to raise prices fast enough to keep up with infrastructure demands.

OTOH, if you found a company that was not a utility but a tech company developing a great new desalinization method, that could be a screaming buy.

[/ QUOTE ]

from my in depth research (aka, read an article in the economist & saw a part of a show about it) it seems that some israeli companies have made some progress in this area and are gearing up to take their product global. the market might not be giving this company(s) its due by undervaluing the likelihood of them making sales in both the near & long term. that might be a screaming buy if you're looking for an individual investment.

then again, the company might be private and any would be investor is ATM SoL.

Barron