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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (25315)	11/21/2006 10:49:21 AM
From: gcrispin	Read Replies (1) \| Respond to of 78667

I don't believe you can characterize "66% of MWA EBITDA coming from the infrastructure division (Mueller)", because Mueller's revenues aren't mainly infrastructure. Nor are the other divisions only new construction. Slide eight of the PDF file you linked states that "repair and replacement is approximately is one-half of Mueller's demand and one-third of US Pipes demand." I interpret that to mean that the rest of that demand is coming from new construction as exemplified in some of the details in the diagram in slide six. My only point is that the Mueller's revenue stream is more complicated than a water infrastructure story. The projected earnings increase is based on lots of moving parts (tax rate, consolidaton, new construction, infrastructure repair) that I can't quantify to take a position in the stock.