Ariel Funds Favors Mohawk

Kansas City, MO, August 1, 2007--A well known mutual fund has decided that Mohawk Industries stock is undervalued.

The Ariel Fund, run by John Rogers, has gained 14% per year over the last decade, beating the market by more than 5% annually. His holdings time is typical 4-5 years.

Rogers likes to buy companies with high barriers to entry; sustainable competitive advantages; and predictable fundamentals that allow for double digit cash earnings growth. He judge companies’ quality by looking at their returns on capital, balance sheets. As with many value investors, he favors companies with low reinvestment requirements.

Mohawk Industries Inc. has a market cap of $6.23 billion, it was traded at around $91.39 with P/E ratio of 13.47 and P/S ratio of 0.80. Ariel thinks Mohawk Industries (MHK) worth $119, which is about 30% above the current trading prices. GuruFocus users have rated a fair value of $128 for Mohawk.