Wednesday, March 4, 2009

Nalco: Buffett's bet on water (NLC)

From BloggingStocks:

"Warren Buffett's Berkshire Hathaway revealed a new position in Nalco Holding (NYSE: NLC); it's my favorite pure play on water filtration," says Chris Mayer in Daily Wealth.

"With a $1.6 billion market cap, Nalco is a small-cap stock, but it's actually one of the world's largest water-treatment companies. Customers use Nalco's products and services to prevent corrosion, contamination, and the buildup of harmful deposits.

"Buffett picked up 8.7 million shares. That makes Berkshire the second-largest shareholder in the company, with a little more than 6% of the shares.It's easy to see what Buffett likes.

"Nalco generates a steady stream of free cash flow – $142 million in its fiscal year ended September 30. Today, the market cap is about $1.6 billion....MORE