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Consolidated Water ( CWCO), which operates seawater desalination plants and water distribution systems, has been rated a buy since December. The company has a largely solid financial position with reasonable debt levels and good cash flow from operations. Its first-quarter revenue rose 37.8% on the year, and its debt-to-equity ratio of 0.22 is below that of the industry average. This suggests very successful management of debt levels. The company's strong revenue growth has contributed to a steady track record of EPS growth over the past two years. This has helped Consolidated Water's stock price appreciate by 28.46% in the year prior to July 13. While this price level is somewhat expensive compared with the rest of its industry, the company's strengths justify the higher price level. Its positives also outweigh a somewhat disappointing return on equity.