Aqua America, Incorporated (WTR) operates as the holding company for regulated utilities that provide water or wastewater services in the United States. It serves residential, commercial, fire protection, industrial, and other water and wastewater customers in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, New York, Florida, Indiana, Virginia, Maine, Missouri, and South Carolina.
The company also provides water and wastewater services through operating and maintenance contracts with municipal authorities and other parties, and seepage hauling services, close to its utility companies’ service territories. The company was founded in 1968 and is based in Bryn Mawr, Pennsylvania.
Aqua America is listed on the New York and Philadelphia Stock Exchanges under the ticker symbol WTR. Its aggressive growth-through-acquisition strategy has resulted in nearly 200 acquisitions and growth ventures in the last ten years. The company's Board of Directors recently voted to increase the quarterly common stock cash dividend payable by 8 percent to $0.135 per share, an annualized rate of $0.54 per share. This is the tenth consecutive year in which Aqua America has increased its dividend above its stated 5 percent target and the eighteenth dividend increase in 17 years. Aqua has paid a consecutive dividend for more than 60 years.
The company has improving fundamentals led by great earnings momentum and expanding operating margins. The latest earnings showed net income for the quarter ended September 30, 2008 of $35.4 million compared to $29.5 million in the third quarter of 2007, an increase of 20 percent. Revenue for the quarter was $177.1 million compared to $165.5 million in the same period of 2007, an increase of 7 percent.
The stock is showing a potential Elliot Wave-4 buy, projecting gains into the $25.50 per share area in the next month. Aqua America does have an options market that is actively traded with ample liquidity. The options currently extend through June of 2009 allowing the options strategist enough time to take advantage of the forecasted opportunity.
Figure 1: Daily Elliott Wave-4 Buy Pattern for Aqua America
(Source: Profit Source)
Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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