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$23.30 -0.62 (-2.59%)
12/4/2008 11:27 AM

Veolia Environnement (ADR) (VE)

CAPS Rating:
*****

The Company is a provider of environmental management services, which include water and wastewater services, waste management services, energy services and transportation services.

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Avatar DemonDoug (99.69) Submitted: 3/20/08 12:01 PM : Outperform Start Price: $64.28 VE Score: -30.62

One of my picks in terms of water as a commodity, necessity, and infrastructure play. Veolia Environment is well-diversified globally, with it's base in France, for example a desalination plant off of the coast of Israel. According to it's press release, 70% of it's sales are in euro's, so the declining dollar will not significantly negatively impact VE directly.





VE is a bit richly valued for a utility play, but the 3.3% dividend at the current levels also gives the average investor a cushion, and as a large cap with less volatility than the general market, in a falling market this is a good defensive play along with the potential appreciation for the water and energy markets they are in.

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Avatar McWorm (32.14) Submitted: 6/26/08 8:27 AM

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They are a much better buy now than they were when this was posted. The recent drop was significant enough to lower the P/E and raise the yield to levels that are much more undervalued. If it was good then, it is better now.

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Avatar AnomaLee (99.49) Submitted: 7/30/08 3:37 PM

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"According to it's press release, 70% of it's sales are in euro's, so the declining dollar will not significantly negatively impact VE directly."

I have to contradict that just a bit. I wrote in your blog pitch about VE. I trimmed down my position just to raise cash. I'm buying back lower in the low $50's but I'm waiting for this to plunge to the high $40's.

The reason is for the opposite of what you said. Their last report they stated how exchange rates were unfavorable and reducing earnings, and I believe forex is higher than 30% -- but I haven't looked at the report since. Even though real volume increased the market has since punished this stock for reporting lower dollars in nominal terms.

I'm not going against you obviously because I own it. I just wanted to point out another risk factor. If the Euro loses value this company benefits more from its overseas exposure and vice-versa.

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