Dykstra: Swimming With Aqua America

After a brief foray into the technology sector with my last two columns, it's time to focus on natural resources again. This time the natural resource is not oil or natural gas but our most basic and overlooked one: water.

Water shortages out West have been getting a lot of media attention, and as cities continue to sprout in more arid climates, the lack of water will provide increasingly higher burdens for metropolitan growth -- a situation that could create investment opportunities.

Today's pick, Aqua America(WTR Quote), has a limited presence out West, but the company's business model and outstanding CEO make it an excellent opportunity.

The company provides water or waste-water services to customers in 13 different states, with the majority of its revenue coming from Pennsylvania. In January 2007, Aqua America completed its purchase of the New York Water Service, providing a vast new market for the company; it's just the latest in a series of nearly 200 joint ventures and acquisitions over the past 10 years. ...