Xylm

Out with the critters and into the $HMWO (+1.4%)

All securities have been sold:

• Blackrock $BLK (+0.36%) (729€)
• Palantir $PLTR (+4.74%) (24€)
• Xylem $XYL (+1.73%) (121€)
• Automatic Data Processing $ADP (+0.72%) (219€)
• Visa $V (+0.24%) (249€)
• Nvidia $NVDA (-2.76%) (118€)
• Parker Hannifin $PH (+1.13%) (476€)
• Broadcom $AVGO (+1.11%) (162€)
• Ferrari $RACE (+1.84%) (394€)
• Allianz $ALV (-0.03%) (262€)
• Mutares $MUX (+3.12%) (35€)

Reason: Due to time constraints away from individual stocks and towards ETFs

Easier said than done: You have put time and effort into the analysis and have gone through ups and downs with them.

It's hard for me, but well, it doesn't help

My foray into water shares has so far been a good idea that I will continue to pursue

Severn Trent $SVT (+1.81%) has increased its dividend to shareholders after profits rose by a fifth last year, despite the company's wastewater pollution rising by a third in 2023.

The FTSE-listed company, which supplies water to much of Wales and the West of England, increased its final dividend by 9% to 70.1p a share, while profits rose to £201.3m.

I've got my water goods basket

out $AWK (-0.26%)
$XYL (+1.73%) and just $SVT (+1.81%) started to build it up. I'll keep at it

https://uk.finance.yahoo.com/news/severn-trent-hikes-dividend-despite-081605635.html

Small addendum

The industry regulator Ofwat will meet soon to decide on the increase in draft legislation between 2025 and 2030. The draft proposals are due to be announced on June 12.

Severn Trent wants to invest 12.9 billion pounds and increase customer bills by 35.7 percent.

Between 2020 and 2025 the average annual bill for Severn Trent was £402.63, for the next five years the average would be £546.35 if Ofwat's business plan is accepted.

https://www.bbc.co.uk/news/articles/c0dem8v7epzo

Investing in climate change - rising temperatures, rising portfolio.

Hello community,

thank you for your great response to my last post Sin Stocks - Stocks that are considered sin sin. Today I would like to share another controversial article with you:

How do I profit from climate change?

Climate change is being talked about like a pig in practically all the traditional media, especially in Germany. I'm less interested in hyping up the next apocalypse than in taking a rational view: what megatrends are emerging and how can I invest in these trends?

To keep things interesting for you, I won't be writing the usual blah blah blah about renewable energies, electric cars, hydrogen and so on. I'm sure you're already familiar with that. I'm also interested in stocks that might only be interesting at second glance and shouldn't be found in every 08/15 portfolio.

Before we get started, one more request: let's stay on topic and talk about shares. In my opinion, moral or political discussions have no added value if no investment can be derived from them.

Impact 1: Increase in natural disasters and extreme weather

The hurricanes in the USA, the flood disaster in Arthal... each of you will be aware of one event. There is no doubt that natural disasters can cause enormous damage. The task of the next few decades will probably be to make buildings more resilient, to make cities more resilient and so on. However, the buildings that are already standing do not (yet) meet these requirements. Therefore, the first share is:

$CAT (+2.76%) Caterpillar.

With their construction machinery and clearing vehicles, they can clear up what has been destroyed. Our colleague @TheOrangeExcavator recently wrote a nice introduction to this share here on the platform.

Then, of course, there is insurance, as the need to insure against such events will increase. The insurance business model is based on calculating risks and then setting a price. If the risks increase, the price rises - and so does the need for insurance.

$MUV2 (-0.19%) Munich Re has been able to increase its profits by over 20% p.a. in the last 5 years. In addition, there is a dividend yield of around 3.3%, which is constantly being increased. The share is currently performing well - in my view, something for the watchlist.

Much more exciting from my point of view are "shovel manufacturers" for insurance companies. I am talking, for example, about $VRSK (+0.36%) Verisk Analytics, which specializes in data analysis for insurance companies (and increasingly other industries). They either create analyses for their customers or offer their analysis tools for independent analyses.

Why take the risk of a single insurance company when you can rely on the supplier in the background? Cash flow and profit have been growing at double-digit rates p.a. for 5 years. Sales growth is estimated at 7.5 %. All this with high sales stability. A very interesting growth stock in my view, which could be picked up in the next correction.

Impact 2: Rise in sea level

Sea levels are expected to rise by up to 1.1 meters by 2100. Mega construction projects are needed to protect against this. Here I have (how could it be otherwise) a Dutch company on my radar: $ARCAD (+0.97%) Arcadis. The company offers planning and technical development services for construction and infrastructure projects. This is not a pure play on sea level rise - they do many projects, such as environmental remediation, mobility projects and management consulting.

Sales growth >8 % in the last 5 years, profit growth of approx. 15 % p.a. in the last 5 years speak for themselves.

It has also just performed quite well, certainly something for the watchlist. If interest rates fall again and the scope for investment increases again, this share will certainly also benefit.

Impact 3: Water shortage and drought

Sea levels are rising - and water is becoming scarce? No contradiction! We are talking about fresh water/drinking water.

In my view, the most interesting value here is $XYL (+1.73%) Xylem. They offer a wide range of water-related technologies: Transportation, testing, wastewater treatment, purification and, and, and.

Sales growth >10% in the last 5 years, estimated earnings growth of 11%. It has also just performed well, with a P/E ratio of 25 I would consider buying in. The share always comes back well.

A look at water utilities could also be worthwhile, for example $AWK (-0.26%) American Water Works. I presented the share in a post-buy article of mine - if you are interested, you can find more about the company there.

If you want a more exotic stock, you can take a look at the $TORO Toro Company. The company offers irrigation systems for agriculture, golf courses and sports fields, among other things. The less water there is, the more efficiently it has to be distributed. They are also active in "snow and ice management". Could also become more relevant in winter with increasing extreme weather events. Sales growth of over 8% p.a. in the last 5 years, profit growth of 6%. Plus a dividend of 1.6%. Currently quoted below the historical P/E ratio.

Impact 4: Changing biodiversity

How can seeds be adapted to the changing climate as a source of food for humanity? Monsanto used to be a company in this field - now part of Bayer. From my point of view, it's a collection of powder kegs that regularly blow up.

But there is also a pure play alternative: $CTVA (+0.47%) Corteva.

They produce seeds, pesticides, fungicides, etc. The key figures are somewhat mixed, but in my view it is an exciting candidate for the watch list. The business could gain more and more momentum due to climate change.

It is also becoming increasingly important to get as much as possible out of existing crops. Here I myself have $DE (+2.16%) Deere in my portfolio.

Sales growth over 5 years: 9.3 % p.a., profit growth 30.7 % p.a. in the last 5 years. P/E ratio of 12 (!).

Top dog in its field. Some also see the share as an AI investment, as they are producing increasingly intelligent machines for agriculture. Smaller farmers will probably increasingly reach their limits, it will consolidate, as only "the big players" can secure the top technologies.

Due to a certain cyclicality, I have the share (currently the only one) in my savings plan.

Impact 5: Social unrest and migration

It cannot be ruled out that new causes of war will emerge in the future over fertile soil, drinking water or similar. The big players such as $LMT (-1.48%) Lockheed or $BA. (+1.44%) BAE should be familiar to most people. Less well known is probably the $KOG (-0.04%) Kongsberg Group from Norway. Its main segments are Defense Aerospace and Maritime. Double-digit sales growth, even stronger profit growth.

Unfortunately, this can also be seen in the chart. Probably too expensive due to the current crises - but in my view the share should be kept on the radar alongside the well-known stocks.

That was my presentation of some investment cases. Even if some of them seem expensive at the moment, I think it makes sense to create a watchlist of interesting candidates at an early stage. When things go wrong, you know what's on your shopping list. Then you can get into companies that should have a tailwind in the long term.

Now it's up to you:

- What (perhaps indirect) effects do you see from climate change?

- Which shares do you think could benefit from climate change?

- Which shares do you already have in your portfolio?

I look forward to your comments.

Fun fact: When I asked my girlfriend (not really interested in shares) about possible profiteers, her timid answer was: "Umbrella manufacturers?" But I hadn't found a pure player, so there was nothing in the article 😉

You never stop learning.

Your Money Man

Well, the money can only evaporate or run away when I go to the water 😅

Together with $SVT (+1.81%) 2 glasses of water poured into the depot.

So water, wind and earth in the depot 😅

What would be an idea for fire? 🤣 Then I would have the following elements in the depot

$XYL (+1.73%) New in the depot 😄😅

The 1x1 of the hydrogen industry on the stock exchange.

Hello dear community,

Considering the fact that there are a lot of newcomers on the platform, I have created a, for social media typical, dumb graphic to give you an overview of stocks, which may not be on everyone's radar. After all, it goes without saying that you can't know your way around every industry. But we have come together here in the community for a solid exchange.

But since we're here on Getquin and not on Instagram, here's some input for the inquisitive.

What do the companies do anyway?

Service provider:

On the service provider side, you'll find rather atypical companies for the sector.

Here I have Friedrich Vorwerk $VH2 (+0.54%) , Vinci $DG (+0.15%) , Ferrovial $FER , Bilfinger $GBF (-0.78%) and Jacobs Solutions $J (+1.55%) listed.

Their main focus is background work on the objects themselves. They support the companies in planning, realization, construction and maintenance. They work decentralized in regional working groups to cover the breadth of the industry. They provide almost any service for an industrial company.

The established elite

If you want to invest in the hydrogen sector, all roads lead to the giants Linde $LIN (-0.05%) , Air Products $APD (+1.5%) and Air Liquide $AI (+0.73%) . Their market power in the field of industrial gases and in today's market environment of commercial hydrogen production seems indisputable. Their know-how in the gaseous materials production segment has been proven over decades and their processes are almost perfectly optimized. Each company also has its own engineering divisions that position them perfectly for the future in electrolyzer development.

The established newcomers

With plenty of money in their satchels, the oil companies Shell $SHEL (+0.73%) , Total $TTE (+0.63%) and BP $BP. (+1.54%) are entering the segment. Oil is finite, but the business should not be. These companies are also experienced in dealing with hydrogen. In the refinery process, hydrogen is an indispensable component. In order to become less dependent on the big 3, they are also entering new market fields. Will they be able to prove themselves there?

Speculative titles

Nothing but expenses. Years of hype and yet a harsh reality hit the small fish in the shark tank around the segment. Nel $NEL (+2.75%) , Plug Power $PLUG (+2.2%) and Ballard $BLDP (+2.46%) are long-suffering. They have never managed to deliver even remotely profitable figures. On the contrary, quarter after quarter, things seem to be getting worse. Only sales are increasing. Can this ever work?

Plant engineering and equipment

Of course, in a globalized world, one no longer takes care of the entire value chain from A-Z. Each company is specialized in its own segment. Permanent beneficiaries of the industry are therefore the equipment suppliers, because they have to technically develop the cornerstones for every innovation in order to survive in the vastness of globalization.

The equipment suppliers

They manufacture the physical parts for the process plants.

Examples of this are Voestalpine $VOE (+1.8%) , Atlas Copco $ATCO B or Sulzer $SUNE .

The equipment suppliers

In addition, the transport of substances is also part of the process. Mass transfer in industry, but also at home, for example in water pipes, is ensured by pumps (for liquids) or by compressors (for gases). Established brands here are KSB $KSB (-2.37%) , Xylem $XYL (+1.73%) , Gorrman-Rupp $GRC (+2%) but also as total supplier Chart Industries $GTLS (+4.49%) or SKF $SKF B (+3.59%) or for specialized tools Stanley B&D $SWK (+1.92%) .

Furthermore, process control is indispensable. Here, brands such as Siemens $SIE (+0.75%) , ABB $ABBN (+1.39%) or also Rockwell $ROK (+5.04%) and Parker $PH (+1.13%) have established themselves. They not only supply the electronic equipment for the process plants. They also offer their software services as safety services, so that safety in process control can always be guaranteed.

I hope to have given you a little insight into the industry and would be very happy to receive constructive feedback.

#wasserstoff
#h2
#hydrogen

Water - chemistry in everyday life

Today a topic is announced, which stood above all by Nestle $NESN (-1.07%) in the last few months. But even on hot summer days, our livelihood and the business behind it are discussed again and again.

What was with Nestle?

Nestle is almost permanently in the criticism. I expressly ask that the activities and personal opinions under the post not be made known. The business unit "Nestle Waters" operates production sites in about 34 countries, for example for the table water "Pure Life". The criticism behind this refers to the production sites in areas where there is traditionally a shortage and, in accordance with pumping, the groundwater level is further lowered. I will leave it open whether Nestle is primarily to blame in this respect. In any case, it is important to remember that water licenses are officially sold to Nestle in all countries. Nevertheless, some YouTubers have realized that they can generate a lot of attention and money by denouncing international corporations. I hope at least that they will think about this in the future when they enjoy their Wagner pizza or their Kitkat in live streams. Otherwise, that would be tantamount to a double standard ...

Whatever one may think about it. There is definitely a danger of nationalization in the event of water shortages at private waterworks. Therefore, I would generally exclude an investment in this respect. In drinking water treatment, however, one cannot do without the private sector. The uses of the individual products are too varied for them to be used specifically for water.

But what is the situation in Germany?

Based on the Food Act, Germany has the Drinking Water Ordinance. The aim of the ordinance is to protect human health and to ensure quality and purity. Since the 2012 update, the problems of legionella have also been taken into account. The suppliers are responsible for this.

More precisely defined are the data in the annexes of the Drinking Water Ordinance itself. https://www.gesetze-im-internet.de/trinkwv_2001/BJNR095910001.html

But how do I now manage to make water usable?

Of course, this depends first and foremost on your regional origin. Water always has different quality classes and must be processed differently accordingly. According to the German Federal Environment Agency, almost 63% of drinking water comes from groundwater. Significant differences exist, however, especially in the east/west comparison. The irregular and ruthless planned economy of the former GDR has left its mark on the environment even today. In general, however, there are always strong impairments along the industrial metropolises. While the Saale, Oder, Ruhr and Ems rivers in particular bear the marks of industrialization, the soils around the chemical sites of central Germany in particular are still heavily impaired. I have taken corresponding accusations from the Water and Soil Atlas.

But why this huge introduction now?

Both in the air and in the soil we have countless impurities or even toxic particles. These are washed out by rain, get into the soil and thus ultimately into the groundwater.

In the course of this, suitable methods must now be found to maintain our drinking water quality.

Basically, we have the possibility to separate the substances from the water mechanically, thermally or chemically.

How does this work?

Due to the difference in regional water qualities, drinking water treatment must of course always be considered very specifically. Nevertheless, chemical treatment with ozone is always the first step. The treated drinking water is then fed into the public network via mechanical separation stages, such as sedimentation and filtration, through to chemical separation with regard to the degree of flocculation and pH value regulation. Samples are regularly taken by the authorities and tested in independent laboratories.

But who benefits from drinking water treatment?

From a personal point of view, I consider the investment in a private drinking water producer, such as Nestle or Danone, as risky. $BN (+1.42%) as risky. One can be denounced too much in the public perception and the more likely a discontinuation of the table water can become. Furthermore, especially in countries where there are shortages, one may well expect nationalization of the production and treatment facilities.

In addition, there are lucrative and promising opportunities for participation in the suppliers.

An investment in the treatment of drinking water can necessarily be linked to the treatment of wastewater.

The most prominent representatives of the private sector in this regard are American Water Works $AWK (-0.26%) , known as the dividend king. In direct competition, if one can call it competition at all, is Essential Utilites, but also United Utilites. $WTRG (+0%) but also United Utilites $UU. (+1.85%) in Great Britain.

On the German market, by the way, Veolia $VIE (-0.32%) with its subsidiary Veolia Water dominates the German market. It holds countless stakes in municipal waterworks. All in all, according to its own website, it supplies about 5 million people in Germany with drinking water and processes their wastewater.

Apart from direct drinking water processing, there are also very lucrative suppliers of drinking water solutions and quality assurance. The best known example is probably Xylem $XYL (+1.73%) . In addition to fluid technology, which includes pump construction and other equipment, the analytics division is a sunshine for investors. The broad range covers the entire field of water analysis. This means that the company does not only participate in municipal water systems, but also in industrial customers who are subject to legal requirements. It is almost impossible to find a direct competitor that is so broadly positioned in this segment.

However, if you want to give it a try, KSB's pumps division is $KSB (-2.37%) is very representative in Europe. Whereas in the USA, IDEX $IEX (+3.1%) can offer an alternative in the field of technical pumps.

But also in the field of chemical water and wastewater treatment, some companies have specialized.

Ecolab $ECL (+1.31%) , better known for cleaning agents and disinfectants, has been owned by Nalco Water since 2011. The focus here is on water and wastewater treatment additives, which are also part of any drinking water processing. Notable among these are slime solvents for biocides and legionella, as well as corrosion protection additives and hardness stabilizers.

Another particular competitor is DuPont $DD (+1.34%) . In particular, the "Water & Protection" division. The focus here is on special resins that can adsorb specific substances from water and also filter them. Depending on the sourcing, this extends into the nano- and ultrafiltration range. Ion exchangers can also be used to ensure higher water purity.

Have you used water today? Then you have probably already come into contact with one of these representatives.