SPIN-OFFS "secret hiding places of stock market profits" Message Board

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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits"

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To: Spekulatius who wrote (1136)	5/28/2008 10:01:39 AM
From: Spekulatius	Read Replies (1) of 1185

AWK - bought a starter position today. AWK is a water utility, owned by RWE (the German utility). valuation is at about 10x EV/EBITDA so it is not extremely cheap but it is at a discount to peers. Business results are distorted by goodwill writeoffs due to the fact that RWE acquired AWK at a large premium but those are non-cash. Under RWE the business performance was ho-hum due to the fact that they could not increase their water rates (merger condition). Now they can increase rates again and my bet is that they will perform better when cut loose. A small bet at this point but i am willing to average up.

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