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PSU69 (68.66)

MWA

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April 16, 2009 – Comments (2) | RELATED TICKERS: MWA , PICO

CA just got their 1/4 billion approved by the feds to fix the CA water infrastructure (yesterday approval was announced).  MWA will benefit.  MWA was pounded down when their order book vaporized as municipalities and builders locked up.  MWA did all the right belt tightening things and they are within their boundaries (bank covenants) even at low biz op conditions.  They will be a double by year end.  I considered PICO or MWA, but I think MWA has the best altitude potential (growth rate in short window).  Jumped on 2,500 shares at $3.70.

2 Comments – Post Your Own

#1) On April 16, 2009 at 3:40 PM, FSUSully (93.25) wrote:

I put the thumbs up on CAPS when it hit $1.80.  It's already a double.  Have not pulled the trigger on actual shares yet but they are on my radar.

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#2) On April 16, 2009 at 4:16 PM, DemonDoug (99.68) wrote:

Erm, will MWA earn any contracts or see any sales?  One thing I've realized with water industry players is that there are a lot out there.  I had a theory last year that water infrastructure companies would be great investments long-term, but I now recognize there is serious issues with individual companies because there are too many out there with too much competition - there is absolutely no moat around any company.

I own MWA and like the company, didn't realize they'd gotten below 2/share, at that valuation the market is pricing in bankruptcy, which is something I don't foresee, although you never know with economic growth continuing to falter despite socialist, communist stimulation.

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