Ugly Duckling
Deep value, arbitrage, mid-cap, mutual fund analyst

Mueller Water: Valuation Justified

If you live in any one of the 100 largest metropolitan areas of the United States, you (and your dog) utilize Mueller Water Products' (NYSE:MWA) equipment daily. Mueller is a major manufacturer of water infrastructure products (including fire hydrants) which was spun off from Walter Energy (NYSE:WLT) in 2006. The company was spun off during the housing market boom and was loaded up with debt. When the housing market crashed, Mueller's shares fell from $19 to under $3, and currently trade around $7.80. While the long-term debt-levels were sustainable at 128% of market capitalization around 2006, by 2010 the company found it harder to issue debt and was forced to pay high yields. In early 2012,...

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