The Share Centre adds AIM company Modern Water to its ‘buy’ list

Graham Spooner, investment research analyst at The Share Centre, explains why he recommends investors ‘buy’ Modern Water.
 
“There have been many projections that water supply issues will be an increasing problem for the planet, as climate change and shifting demographics continue to alter the environmental balance. We recommend Modern Water as a ‘buy’ for investors prepared to invest in a high risk small company or have an interest in green issues. Although the company has struggled to take advantage from the water shortage and reward shareholders in the past, we believe it could benefit in the long-term from global pressures that are set to increase. This is a share to tuck away for the longer term or to drip feed into as progress is likely to be slow.
 
“Results in March showed indications that the future is looking a little brighter for Modern Water, backed up by directors buying shares in the company since the announcement. There are a number of new products set to be launched in 2014 and management will be targeting new markets, along with its existing main markets in China and the Middle East. Last year saw new contracts in these key regions leading to the opening of a new office in Shanghai.
 
“Demand for fresh water is only going to increase as the world's population grows and the company’s water monitoring division has a improving potential order pipeline. Investors will be encouraged to hear that Severn Trent has been trialling its water monitoring technology.”