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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (25796)	1/23/2007 8:14:20 PM
From: E_K_S	Read Replies (2) of 78666

Hi Spekulatius - How long do you believe before the market values MWA at private market valuations? I think it will take a few quarters of very positive earnings and sales reports. I am considering buying more shares at the current lows and selling August $15 calls. Have you evaluated a buy write strategy for a portion of your shares? What's the symbol for the "b" shares and can you sell covered calls on these shares? Stock should have a fair value of $18-$20 based on an industry PE of 17. I would like to see better coverage of their debit from operating free flow cash. This can be accomplished from increased operating efficiencies from the spin off. I will be watching the insider transactions to see if there is a net "buy" bias. Management already received a lot of new shares after the spin off. Hopefully they will not sell these shares soon. EKS P.S. I am also evaluating Cummins Inc. (CMI) for a new starter position. I like the long term prospects for the company specifically in their mid-size diesel engines (they will supply the diesel engine for the new 2007 jeeps). At a PE of 8 they seem like a good value play. Any opinions?

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