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Students make Alex. Brown purchase

February 06, 2013
Wednesday, January 30. Student members of the Alex Brown Fund agreed unanimously to purchase shares of stock in American States Water Co. and American Water Works Inc. 

Investments in the water industry had been researched and debated by the group since early November last year. AWR and AWK were identified early in the research as the dominant water companies in the United States.

Similar to most utility providers, water companies are in a unique position to secure increasing rates of income from state and municipal clients. Every year, water companies can apply for an increase in payment for their services depending on the procedures they put in place to limit pipe bursts, fresh water waste, and efficient delivery.

Both AWK and AWR have benefited from annual government payment rate increases.  Increased profits and efficiency has allowed AWR’s stock price to rise from $42 per share (mid- November) to $50.80 (present day value) and AWK’s stock price to rise from $36 (mid-November) to $38.00 (present day value).  Research into other water companies continues.


Last modified on Feb. 6th, 2013 at 11:24am by Michael Harvey.