Walter Industries (WLT)
I picked up this name from CNBC this afternoon. The company looks pretty sound and well diversified. It may be too similar to USG in that it is somewhat of a housing play, but it has five different business lines at the present time.
Looking through some of the basics on Yahoo, it looks like it may be a little undervalued, but its hard to compare directly to other companies because of the multiple business lines. I'm going to go through the SEC filings to see what their large non-recurring expense was for the past year and to see if I can find anything else out about them.
posted by joel at 12:29 AM
5 Comments:
lowered their earnings estimates... check yahoo news on WLT (12-4-06)
WLT is still in the process of spinning off MWA. We're going to get 82 shares of MWA and WLT is going to drop in price on Dec. 14th.
We'll have 50 shares of WLT near 25 and 82 shares of MWA near 16.
A somewhat logical thing to do would be to sell the MWA and buy 50 more shares of WLT. Sucks to pay two commissions, though. When we bought were we looking mostly at WLT's core businesses, or did we want the exposure to the water company?
At that time, I had no idea it would out that way. I assumed Walters would just sell off their share and reinvest the capital back into the parent company. We'll have some time to see how things play out over break before we get back and have the first meeting of the year.
There's really no problem in holding them both, just thought I'd mention it before someone hits up the yahoo portfolio over break and sees WLT in half.
Good call. The way it's looking, I agree with what you said earlier. Sell off MWA and put the money back into WLT. I think that will get us more exposed to the play we want and give us a better opportunity to turn a profit.
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