Meadwestvaco Cp (MWV)

In the figure below, I have drawn eps justified price for MWV using a P/E ratio of 20 and plotted it against price. MWV earnings are extremely cyclical - you can see clear peaks and valley's. MWV's earnings have started to drop. If history repeats itself there will be an opportunity to pick these shares up at a much greater discount.



MVW is trading at the higher end of the P/B and P/S bands.