MWA
Two Pairs Trades Capitalize on Distress
Long/short pairs trading arbitrage is meant to be market neutral, and that's valuable now. Here are two good starting points.
96th Edition of the Festival of Stocks
A roundup of last week's stock market related blog posts hosted at Fat Pitch Financials.
On the Mueller Mispricing: "A" Shares vs. "B" Shares
A post on the price difference between Mueller Water Products (MWA) "A" shares and "B" shares. The shares are identical except that each A share has 1 vote and each B share has 8 votes. Right now, the B shares are selling for $0.34 a share less than the A shares despite having eight times the voting power (A shares: $13.98; B shares: $13.64)
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- 3 points
Delve deep to find the good spin on spun-off companies
Whitney Tilson reveals the value he finds in spin-offs. He discusses two spin-offs that he likes today, Western Union and Mueller Water Products.
Mueller Water Products: A Spin-off With Value
So what is Mueller worth? Using three different valuation methodologies – private market value, peer public company multiples and a sum-of-the-parts analysis, we think Mueller shares are worth in the mid-$20s, versus under $15 today. We think that is plenty cheap for a stable, high-quality business and have been buying aggressively at today’s prices.
Festival of Stocks #10
This week's festival includes six posts discussing specific stocks, three posts on topics in investing, and a poem. Yes, you read that right. This week's festival concludes with a poem. It's the proverbial cherry on top of this satisfying stock sundae. Stocks mentioned include: Legg Mason (LM), Overstock.com (OSTK), Western Union (WU), Whole Foods (WFMI), Walter Industries (WLT), and Mueller Water Products (MWA).
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