A Look at Mueller Water Products

Shares of Mueller Water Products (MWA) surged 6.42% following the fourth quarter and full year 2010 results.  The result shows slightly improved financial with increasing in net sales and operation income and decreasing in net loss.  Trading at penny stock price at $3.15 with market cap of $486 million, Mueller Water Products is a company you should take a second look at. The Atlanta based company focuses on water infrastructure,  flow control and piping component system products for use in water distribution networks and water treatment facilities.  Infrastructure is a hot keyword as the government is trying to boost the economy by spending on infrastructure projects.  Water infrastructure is another sexy keyword as volatile climate and increasing scarce water source could eventually make water infrastructure a hot industry again.

Other things to see is the insider trading.  The insider transaction shows bullish sign with a huge purchase of 125,000 shares in September by Mueller Water Products's officer and another 20,000 shares purchase on August 31.  The technical chart also shows bullish sign as the stock is now trading above 50 day moving average and KD is about to go up.