PWEI

**zdplus** Thu Aug 17, 2006 3:52 pm

PWEI
Hi, Blast:

I can not understand why PWEI 's P/E is so low.
Seems its earning was improving quickly and given
it's current earning it's P/E is just low.

/zdplus

**blast_investor** Thu Aug 17, 2006 7:51 pm

Hi zdplus,

I have not studied this stock so I can not tell whether it is cheap stock or not.

This is cyclical stock. Its earning will go up or down dramatically in cycles.

Stock market is not totally stupid, investors are certainly aware of this cyclical nature of business.

Just a note here, the price is up a lot. It is possible that this stock is expensive based on its historical average earnings.

I also noticed that Pirate Capital Hedge Fund is big shareholder of this stock. Pirate investing thesis is mostly based on Merger and acquisition, so this stock might be cheap compared to its peers.

**blast_investor** Thu Aug 17, 2006 8:06 pm

Here is a story on this stock and Pirate Capital Hedge Fund:

http://texis.seattletimes.nwsource.com/nw100/static/charts/pweagle.html

This stock PWEI is housing boom play.

**zdplus** Thu Aug 17, 2006 10:25 pm

Pirate 's entry is 22-24.
Yes, I am afraid this stock is quite "housing" related.
Just curious why its earning is going up quite a lot
while the "residential housing" is cooling down.

blast_investor wrote: Hi zdplus,

I have not studied this stock so I can not tell whether it is cheap stock or not.

This is cyclical stock. Its earning will go up or down dramatically in cycles.

Stock market is not totally stupid, investors are certainly aware of this cyclical nature of business.

Just a note here, the price is up a lot. It is possible that this stock is expensive based on its historical average earnings.

I also noticed that Pirate Capital Hedge Fund is big shareholder of this stock. Pirate investing thesis is mostly based on Merger and acquisition, so this stock might be cheap compared to its peers.

**blast_investor** Fri Aug 18, 2006 12:26 am

Well, it is in building material type of busines. Pipes and plumbing etc, material, not toally tied to "residential new home housing".

zdplus wrote: Pirate 's entry is 22-24.
Yes, I am afraid this stock is quite "housing" related.
Just curious why its earning is going up quite a lot
while the "residential housing" is cooling down.