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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (25805)2/2/2007 11:51:19 AM
From: E_K_S  Read Replies (1) of 78673
 
Mueller Water Products (MWA) Announces First Quarter 2007 Results
Thursday February 1, 5:01 pm ET
- Earnings Of $0.15 Per Diluted Share Reported in First Quarter -
- Strong Operating Margin Performance -
- Synergy Plan Achieves Annual Run Rate of $41 Million -

biz.yahoo.com

From the article:"...The Company continues to execute its synergy implementation plan ahead of schedule. The synergy plan is expected to achieve run rate operating income improvements at the high end of the previously announced range of $40 to $50 million early in fiscal 2008. Through December 31, 2006, the Company already has achieved run rate synergy benefits of approximately $41 million..."
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It appears that management came through with a better than expected report. Now they need to show good growth, continued strong operating margins and improving efficiencies from the spin off. With a small PE expansion to reflect their potential growth rate, this could be a $20/share stock by 2008.

I picked up a few more shares to complement my other water stocks.

EKS
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