Mueller Water Products

Mueller Water Products Tuesday, June 12, 2007

Posted by ei-forum in US Traded Stocks.
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Mueller Water Products (MWA) is a leading maker and supplier of a broad range of water infrastructure and flow control products for use in water distribution networks, water and wastewater treatment facilities, gas distribution systems and fire protection piping systems.

These are the kind of companies we really like: boring business but solid fundamentals. The stock, which sells at a small premium to book value, has been suffering due to fears about the housing market slump but experts agree the water business is becoming more and more important globally and that that water infrastructure in the U.S. is going to need major repair in the near future.

Mueller is definitely an interesting way to gain some exposure to the water industry – this is a solid play. Furthermore, we do not regard the Short % of Float @ 41% as an issue, in fact, it will potentially provide a spike in price as shorts will be forced to cover and accelerate the long-term growth of the stock price.

We currently feel the B shares (MWA.B) are extremely interesting at 15.49 USD.

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