The Prudent Investor

Another Look At SJW Corp.
February 8, 2007, 11:26 am
Filed under: Water Utilities

SJW Corp’s website is located at Its beginnings date back to a time just after the Civil War, so this is a company that has been around for a while. Their 10-Q was filed early in November, so I expect to see another one soon.

Unfortunately, SJW does not have a Dividend Reinvestment Plan (DRiP), but they do allow employees to make purchases at a discount (not that this helps me). These shares have been set aside and the program will continue until the shares are exhausted. I mention this because this is markedly different from Middlesex’s plan to continually issue shares in their DRiP. SJW Corp. has stated that it does not anticipate the issuance of equity to finance capital expenditures.

I was initially concerned to see a great many Form 4 filings where officers were selling their stock. However, when one looks at the company’s stock price, which has gone from around $25 to about $40 in the past year, this is quite understandable.

SJW Corp. is a holding company with four subsidiaries. The major portion of the company involves itself in water distribution; the other segments are involved in the ownership of land, the sale and rental of water conditioning and purification equipment, and even a 6% ownership of California Water Service Group, another company currently under consideration.

The only real concern I have at this time is that the company’s price may have risen too far too quickly. That said, if I was looking to make a single purchase then this would be a major concern. However, I am considering making numerous purchased over a long period of time, so the current valuation is not as much of a concern in this instance.

Next week I am going to further narrow things down to allow me to come to a decision as to which company is going to act as the first company in this portfolio.


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