Mueller Water Products, Inc. (MWA)

Recovery infrastructure play for the long term. The company has been around for about 100 years.

From The Streetinsider.com

September 29, 2009 7:14 AM EDT

Goldman Sachs initiates coverage on Mueller Water Products (NYSE: MWA) with a Neutral rating and $6.25 price target. The firm is positive on construction capex outlook, MWA's high operating leverage, and sees rising long-term US water system investment. However, they need to see improvement in the company's bottom quartile cash flow generation and returns on capital in order to get more positive on the name.

Mueller Water Products, Inc. manufacturers and markets various water infrastructure and flow control products for use in water distribution networks and facilities in the United States and Canada.

Everyone likes water. Infrastructure plays are significant and our economy, when it gets back on a better footing, will see increased activity in infrastructure to both improve existing and to create new paths for critical items like water.

Water is the gold of the future.

tis simple - we are in pipeline break down mode - they will fix it and whoever invest - shall reap the reward - is a long - but the reward will be worth the wait.

This is an infrastructure play with huge upside potential.

Lots of fools on this bandwagon. That said the infrastructure story makes sense.

Motley Fool recommended

I can't pick up a newspaper without reading about a water main break etc. Our water infrastructure is crumbling. mwa is in the same position as it was when it was $12.00. It is starting to make higher lows. I just have to wait for the funding to catch up and it will be back at $12.

I like water and I like infrastructure

Infrastructure spending is going to go up

Infrastructure needs redoing. My city is doing all incoming pipes throughout, starting with my street. Massive undertaking and will continue to spread with stimulus and further legislation, not to mention the worst case scenario - systems completely breaking down.

I closed out and then reopened my position in MWA today, because I put real money behind my picks. The previous start level did not accurately reflect my actual cost. This will allow me to better track how it is doing over the longer term (2-3 years), which is my basic investment horizon. They are a good company which got "super whammed" by the housing market. Most of their sales are tied to new home construction, so in the intermediate term, will languish in the $3 to $4 dollar range. For patient investors, they have the potential to pay off big. While they were a spin off a couple of years ago, they are not new at this. They have been around for about 100 years, and will still be around when the economy turns, and new home construction gets back on track. JMO and worth exactly what I am charging for it.

I JUST BOUGHT SOME SHARES ON THE PULL-BACK. I HAVE BEEN WATCHING THIS STOCK ALONG WITH OTHERS FOR AWHILE. AT THIS PRICE, LOOK FOR A 3-4 BAGGER IN THE NEXT YEAR OR TWO!

had owned and sold for 30% profit - ended rating because I only rate what I own with real money. Back in today at $2.56 so am beginning rating again. I think $4.00-5.00 is entirely reasonable in short-mid term again.

The company is a Walter spin-off and worth well more than $4 per share.

Research done through morningstar

Infrastructure play. US needs to spend about $1 trillion on updating its infrastructure,

Water infrastructure is vital.