Taking A Gulp Of Water Point

In spite of stiff competition from bottled waters, tiny newcomer Water Point Systems thinks it can join the fray--and turn in some neat profits. You may have seen its vending machines outside Kmart or Wal-Mart. These coin-operated vendors, bearing a Canada Dry trademark, aren't yet a threat to the prepackaged, off-the-shelf water on sale almost everywhere. But money manager James Melcher, president of Balestra Capital, has large bets on this company. Water Point went public in December at 5 a share and is now trading at 47/8. Melcher sees the stock doubling in 12 months.

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