Water Stocks To Buy #2 – Calgon Carbon Corporation
As we’ve seen with fracking in the energy sector, sometimes the simplest ingredients can be the best investments. When it comes to water, we’re talking about carbon.
Calgon Carbon Corporation (CCC) is one of the largest manufacturers of activated carbon and filtration systems in the world, with activated carbon capacity of around 75,000 tons per year. That’s a good position to be in, as carbon filters are some of the most effective methods at removing chlorine, sediment and other volatile organic compounds from wastewater. They are also one of the cheapest methods for utilities to implement.
While CCC does sell its products across the globe to various utilities, its strongest position is that in emerging Asia. The company founded an Asian office back in 1997 and hasn’t looked back. Calgon continues to be the No. 1 supplier of carbon to the region — including in China. That’s critical a win for CCC as nearly 80% of China’s rivers and lakes are too polluted for even fish to survive.
It’s also a major win for investors.
CCC managed to report a huge 21% increase in fourth-quarter profits. And win those kinds of gains, it’s no surprise that shares of this wining water stock are up over 28% this year.