Mueller Water Products, Inc. (NYSE:MWA)

Big drop on June 5th, likely related to competitor MRC Global negative industry outlook.

Zacks Rank 1-StrongBuy, Recommend Outperform, Industry Rank 199 / 265, Avg target of 9 analysts 7.21
- Short Interest Ratio: 2.20 %
- Est Revision Ratio: Up 17 vs 4 Down
- Free Cash Flow: -12.80 M
- Debt / Equity Ratio: 2.441

WOW, MWA ! I'm long and I think this is a very good play on housing for now and well into the future; also, very good position for nat. gas boom, wastewater , and everyone wants a better fire rating. And maybe, their gas distribution systems will get CNG to our local gas stations (homes) for our families vehicles, a big saving for all. jpmj4847

4th Q results Net sales increased 9.7% over prier yr. diluted share increased to $0.03 Grow operating income to $21.9M from $ 12.2M increased of 79.5% Generated increased free cash flow of $45.3M for 2012 full yr up from $12.7M 2011

Mueller Water has doubled my money in only 10 months, but the company is still in turnaround mode since becoming an independent company so it has more room to run. In order to evaluate the company's future potential, rather than just dwell on its past performance, it's important to understand why the company struggled until recently. Mueller Water is the unfortunate recipient of the most unlucky timing possible -- MWA is exactly the kind of company that is most directly impacted by macro-economic and housing market problems and was spun off from Walter Energy just in time for the worse housing and general economy collapse in many decades. So, how well MWA will do going forward depends largely on how well our housing market and entire economy continue to recover. In other words, Mueller's recovery closely tracks that of the housing market and the economy as a whole so, if Mueller's turnaround doesn't continue, that will likely mean that we'll all have far worse problems to deal with than the price of our MWA stock.

TSx UP & (Buy Cand or C>Maxh10) price $2-$5, V90>=100k, Cap 150m,optionable

Here's why I think in the long run, this is doomed to fail: MWA is burdened with heavy debt (even after the sale of its underperforming pipe business, which, by the way, accounted for some 30% of earnings). Further, the company has a very small network of distributors and maintains zero contracts with any of them. This is a very competitive industry, and the loss of distributors could conceivably destroy the company, plus the rising cost of materials and general uncertainty of the construction market.

It finally got back down to where I wanted it for a longer term hold.

In light, will watch and wait for more buying opportunities.

Will take small bites because this is not going anywhere real quick.

I still think they have a lot of future potential.

JMO and worth exactly what I am charging for it.

Only if the municipalities can find money to rebuild their water infrastructure. In the meantime I believe this stock will perform

Water infrastructure is bound to take off regardless as communities and governments look to update crumbling systems. Plus, stands to gain from the inevitable recovery in construction industry. Sports a nice 3.11% dividend too!

Simple.. to much Debt Debt Debt

Why the "smart money" is investing in MWA: This stock regularly traded for $14 plus before the financial crisis in 2008. There is an enormous amount of water treatment and distribution infrastructure that needs to be upgraded in this country, and that will be a big opportunity for MWA. While many are concerned that budget issues at many municipalities might continue to postpone or cancel water infrastructure projects, sooner or later most of them will have to happen to maintain water quality and system efficiency. When MWA starts reporting growth and profits, the stock is likely to see strong appreciation from these levels.

When cities and municipalities realize that replacing crumbling infrastructure is cheaper than doing nothing, MWA's sales, profit, and stock price will begin a long upward trend.

To be honest, this could be a bust. I am not a buyer in this sector. However, I can't judge this too accurately. For one, I have no clue if the future water-wars and water shortage from climate change will impact this sector and thus this company in a positive way.

I mean, if the world runs low on water, is that a good thing for companies like this? To be honest, I have no clue. However, if I were to take a wild guess (ok, maybe slightly educated) I's say that the increased demand for water will help MWA.

In short, MWA will either do nothing for the rest of time, or move up at a rate faster than the S&P 500. I'll just lake the latter for the heck of it.

Another play on water, Mueller plays in the "infratructure" space within the industry, making pieces that fit into community water networks. The stock has been depressed due to the difficulties being faced within the residential real estate market, as well as the financial problems facing many municipalities across the U.S. However, the problem of ageing water infrastructure is only going to get worse, and demand for new infrastructure will return at some point. Mueller stands to benefit from this theme.

5 STAR, Small-cap, dividend payer

Good growth and earnings ahead.

GO GO GADGET GO!

Anundervalued company

big drop but still highly rated