CORE GAME PLAN FOR CAL-AM EXPOSED

Cal-Am’s plan to crush opposition and raise prices was recently unintentionally exposed in an internationally distributed article entitled Ten Companies to Invest in Over the Next Decade.

Cal-Am is owned lock, stock and barrel by the American Water Works Company (website), a huge New Jersey corporation. AWK (as the company is listed on the New York stock exchange) in turn is heavily owned by European share holders, of whom the key ownership is heavily German.

Of Cal-Am’s owner, on 11/10/2010, Comcast.net Finance reported of AWK that this “largest public U.S. water and waste water utility with about 16 million customers in 35 states and two Canadian provinces ... offers investors a near monopoly in its local markets with opportunities for growth through acquisitions.

Then comes the snapper. “While cap-ex concerns may be there, there is plenty of room for water utilities to raise prices.”

For a sense of the Global Water Grab mindset here is the complete article from Media Digest, drawing on Reuters, the Wall Street Journal, and the New York Times:

"American Water Works Company, Inc. (NYSE: AWK) is another defensive core holding for long-term investment portfolios and is our best pure-play water stock pick. It is “American again” after the RWE spin-off and is the largest public U.S. water and waste water utility with about 16 million customers in 35 states and two Canadian provinces. American Water offers investors a near-monopoly in its local markets with opportunities for growth through acquisitions. While cap-ex concerns may be there, there is plenty of room for water utilities to raise prices. The 3.6 percent dividend yield will almost certainly grow over time. The downside for opportunistic value investors is that it rarely goes on sale via stock price drops."

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