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No. of Recommendations: 3
Thanks for posting, I hadn't read mine yet. So they are paying out more in dividends then they made last quarter? How long can that last?


---- An article written yesterday:
http://www.forbes.com/2008/06/13/flowserve-aqua-water-pf-ii-...

"Aqua America is a utility holding company that provides water and wastewater services through its operating subsidiaries to about 2.8 million residents in more than a dozen states, including Florida, New Jersey, New York, and Pennsylvania. In addition, Aqua America provides water or wastewater services to Philadelphia and in 23 other counties in Pennsylvania, or about half of the company's total customers. Despite providing these indispensable services, the stock has been in a steep downtrend under its 10- and 20-week moving averages since late September. In fact, during this time frame, the stock has shed more than 28%.

"Investors, however, are extremely optimistic about Aqua America’s prospects. The Schaeffer’s put/call open interest ratio for WTR stands at 0.35 and is lower than all but 7% of the readings taken during the past 52 weeks. Should the optimists grow weary of the stock’s downtrend, they could close out their long positions, creating more selling pressure on the shares. There is also ample room for downgrades, as five of the eight analysts following WTR rate it a 'buy' or better. Any downgrades for WTR could spell trouble for the shares.

"One final concern comes from short sellers. Roughly 15.2 million WTR shares have been sold short, accounting for nearly 12% of the company’s total float. If these short sellers decided to add to their winning positions, it could create a fresh round of selling pressure for the shares. To take advantage of the stock’s steady downtrend, traders should look to the stock’s September 17.50 put."

[Which, for those playing at home, last traded today for $1.30. Hence a money-maker if WTR falls below $16.20 by September. WTR is now at $16.66, think it will fall more than 3% from here?]
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