Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Mueller Water (NYSE: MWA) shareholders are bathing in glory today, their faith in the company rewarded, and their stock worth 4% more than it was just yesterday -- all thanks to an earnings report that came out last night.

So What: "4%?" you ask. "So what?" And I admit, that's not a lot to get excited about. While I won't sneeze at a 4% gain, it certainly is a lot less than the 10% bump in share price that Mueller was enjoying earlier in the day. But should investors jump on the pullback, and buy before the stock goes back up?

Now What: Actually, no, you shouldn't -- because I'm not at all convinced Mueller will go back up. The 10% gain just may have been the high water mark. Consider: Mueller missed sales estimates yesterday, reporting a bare 3% gain year over year. It missed -- or at best, matched -- consensus targets for earnings, reporting a $0.09 loss ($0.07 pro forma), versus Wall Street estimates of $0.07. Worst of all, the company's already low level of free cash flow -- for which I criticized Mueller back in January -- constricted even further in the first quarter.

My advice: Everybody out of the pool! Losing money and burning cash, Mueller is all washed up. Like I said before -- buy Tyco (NYSE: TYC) instead.

Will investors heed Rich's advice, or pile back aboard and refloat Mueller's boat? Follow the story and add Mueller Water to your Watchlist.

Fool contributor Rich Smith does not own shares of, nor is he short, any company named above. His skepticism notwithstanding, Mueller Water Products remains a Motley Fool Hidden Gems recommendation. 

The Motley Fool has a disclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.