I usually cover investments in precious metals. However, I want to cover
another precious resource today.
Drinking water is becoming increasingly scarce and going to increase in
value in the coming years as drought conditions continue to worsen in the
Western United States. Jay Famiglietti, senior water scientist at NASA’s Jet
Propulsion Laboratory and a professor at UC Irvine, wrote
that California’s reservoirs have only about a one-year supply of water
remaining. Furthermore, the snowpack that provides much of the drinking water
for the state is at just 12% of normal levels.
Of course, the problem is not just contained to California and the Western
United States. A recently-released UN report states that the world could
suffer a 40 percent shortfall in water in just 15 years unless countries
dramatically change their use of the resource.
Another precious resource, food, is likely to get more expensive as
the drought in the West continues, the population expands and
water prices rise. Keep in mind that California produces one-third of
the country’s vegetables and two-thirds of its fruits and nuts. That
includes 99 percent of almonds, 95 percent of broccoli, 90 percent of
tomatoes, and 74 percent of lettuce.Food prices have been relatively stable
despite the drought, but are expected to rise if conditions persist.
The medical and recreational marijuana industry is booming, particularly
in states like Colorado that have recently legalized it for medicinal and
recreational use. It is literally a market in its infancy with huge growth
ahead as operations are commercialized. And while the above sector may seem
unrelated at first blush, the newest generation of growers are using
commercial growing techniques such as those employed by agricultural
companies and require a steady supply of clean water.
I am bullish on all three of these industries (water, agriculture and marijuana)
and have come across a company that can give investors exposure to all three
with the purchase of one stock. That company is Two Rivers Water and Farming.
If you would like to get a better feel for the company, you can listen
to a discussion with management here. It is a bit dated (August, 2014),
but still offers insights into their plans and the thinking of management at
the time.
Please keep in mind that Two Rivers (TURV) in a small-cap stock with a
market cap under $15M. They still trade OTC and shares are not very liquid.
In addition, marijuana is still illegal at the Federal level, despite State
laws. The stock price is very volatile and has trended down over the past
year. Please perform your own due diligence before investing.
Disclosure: I was not compensated to write about this company.
However, I do own shares and have profiled the company for Gold Stock Bull
premium members in the past month.
