AWK: Invest In Companies You Literally Cannot Live WithoutAmerican Water Works Co (AWK) Trade Idea.
American Water Works is the largest investor-owned us water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.
Narrow moat, standard allocation, and low FV uncertainty.
Valuations have come back down to earth. Morningstar displays a four-star price-to-fair-value.
The business cycle is late-stage, and playing defense makes sense.
Technicals are interesting.
Risks include sequential dilutions until 2027. A lack of growth could also be a disappointment for some investors with unrealistic expectations. Greenblue quant report also displays a low score of 957. But relative to the utilities sector, AWK is the 7th best.
VPU
VPU starting to pull back? VPU tracks a broad-based, market-cap-weighted index of US utilities companies.
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The Utilities Sector The following ETFs are related to the Utilities Sector. The ETFs track different sections of the utilities sector as noted. There are many more ETFs in utilities subsections for the USA and international equities. Included for each ETF are the symbol, the total Assets Under Management (AUM), the Number of Shares in circulation (Shares), the Average daily Trading Volume (Avg Volume) for the 3 months prior to 7/12/2017, the Expense Ratio, and the Bull//Bull type as well as the leverage ratio.
I have tried to copy these data carefully but cannot be held responsible for any mistakes made. These data are important because high volume ETFs are liquid which means you can get in and out quickly and there is a smaller spread between the bid and ask price. This affects the actual profitability of the entry and exits trades. The same considerations applies to put and call options. Use the highest volume ETF that you can.
The risk of the 2x and 3x Leveraged ETFs is that the 2x or 3x ration only applies to one trading day. After that, the ratio declines daily due to the rebalancing effect. NEVER hold 2x or 3x ETFs long term as they fall in value over time. For long shorts (in a non margin account or 401k), just buy the 1x Bear ETF if available. Unfortunately UTLZ is very low volume.
XLU AUM 7.1 Billion, Shares 137.2 M, Avg Volume 11.3 M, Expense Ratio 0.14%, 1x Bull
***Note XLU tracks the Utilities Select Sector Index.
VPU AUM 2.5 Billion, Shares 21.8 M, Avg Volume 145,689, Expense Ratio 0.10%, 1x Bull
***Note VPU tracks the MSCI US Investable Market Utilities 25/50 Index
IDU AUM 754.6 Million, Shares 5.9 M, Avg Volume 81,521, Expense Ratio 0.44%, 1x Bull
***Note IDU tracks the MSCI US Investable Market Utilities 25/50 Index
UPW AUM 14.4 Million, Shares 0.3 Million, Avg Volume 3,252, Expense Ratio, 0.95%, 2x Bull Leveraged
***Note UPW tracks the Dow Jones U.S. Utilities Index
SDP AUM 8.7 Billion, Shares 0.3 M, Avg Volume 3,144 , Expense Ratio 0.95%, 2x Bear Leveraged
***Note SDP tracks the Dow Jones U.S. Utilities Index (-200%)
UTSL AUM 2.5 Million, Shares 0.1 M, Avg Volume n/a, Expense Ratio 1.1%, 3x Bull Leveraged
***Note LOW VOLUME. AVOID
UTLZ AUM 2.3 Million, Shares 0.1 M, Avg Volume 195, Expense Ratio 1.1%, 1x Bear
***Note LOW VOLUME. 1000 shares traded 7/12/17.