California Faces Brutal Drought, but Some Companies May See Upside

As California dries up on the heels of an unprecedented drought, there may be some liquidity in companies that specialize in water reuse and conservation. The crisis is so severe, the state now requires residents to scale back water usage by 25%. Companies like Rexnord (RXN), which specializes in water efficient plumbing on the commercial side, Mueller Water Products (MWA), known for its water metering technology and Xylem (XYL), which disinfects water, could benefit as state officials take steps to remedy the drought, analysts say. TheStreet's Scott Gamm has details from New York.