Michael Burry, famous for predicting the 2008 housing crisis, now focuses on water as a commodity due to global supply pressures. WaterBridge Infrastructure, a Houston-based company, has launched an IPO on the NYSE under ticker WBI, aiming to raise $540 million and seeking a valuation of $2.3 billion.

WaterBridge manages the nation’s largest produced water infrastructure network, handling water for oil and gas companies. Revenue comes from handling fees and providing water for drilling operations. With assets in the Delaware Basin, the company has significant expansion opportunities and long-term contracts with major energy companies.

The Delaware Basin is a profitable region for oil and gas production, with companies facing challenges like tariffs and supply chain issues. Water production in the area has grown steadily, requiring increased water handling capacity. Despite the potential, investments in the water industry are not consistently profitable, with Xylem up 21% and H2O America down 2.5% in the last year.

Investors considering WaterBridge stock should acknowledge its stable revenue stream from long-term contracts but should also note the lack of a dividend. While the IPO presents an opportunity to invest in the water theme, it may be more of a defensive play than a growth stock. A strong dividend policy could make the stock more appealing to investors.

Read more at Yahoo Finance: Should You Invest Like Michael Burry and Buy This New IPO Stock Here?