heavily invested

With the shares off some 63% from their 2006 peak, it might seem like a good time to take the plunge into Pool Corp., the leading wholesale distributor of swimming-pool equipment and related products. If you do dive in, be sure to have a life preserver at hand.The company, based outside New Orleans, faces big problems. Sales of new pools are in a free fall, a casualty of the horrific housing market. And many families that already have pools may soon start cutting back on maintenance, to save money as the recession drags on. The cool, dreary weather that kicked off summer in many parts of the country didn't help matters, either. "I couldn't imagine a worse environment for this company," says Shawn Kravetz, founder and principal of Boston-based Esplanade Capital Management, noting Pool's presence in the most troubled real-estate markets and consumers' increasing reluctance to spend. Not unreasonably, he thinks the shares, now trading at about $18 apiece, are probably worth just 10 to 12.

11.7

22.8

PE of 15, a PEG of 1.49, and it pays a dividend of 2.8%.

Pool Corp. recently announced a $100 million dollar buyback which includes the prior plan.

Swimming pool distributor Pool Corp. on Thursday reported quarterly earnings that were in line with market expectations, and forecast a "modest improvement" in its full-year earnings per share.

The stock trades for 11x cash flow.

leader in industy-price at low end of range

Is a wholesale ditributor of swimming supplies

Downgraded by Avondale Partners from Mkt Outperform to Mkt Perform