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By Jason Stipp | 04-10-2010 06:00 AM

Two More Stocks Join the Wide Moat Club

...and one looks attractively valued. Morningstar's Paul Larson digs into the details.

Jason Stipp: I'm Jason Stipp for Morningstar. As Morningstar stock analysts expand our coverage over into Europe, we are having some new wide moat companies join our roster. Here with me to tell us a little bit about two of those companies is Morningstar's Paul Larson. He is an equities strategist and also the editor of Morningstar StockInvestor. Thanks for joining me Paul.

Paul Larson: Thanks for having me again.

Stipp: So these companies, they're ones that we recently put under coverage, it is not like they just recently dug their moats. They probably had wide moats for a while. But we started to cover them, and so they have joined our wide moat rolls. So tell us a little bit about the first company. You mentioned something to me very intriguing before we started the interview about what this company does. Tell us a little bit about it and why it has a wide moat.

Larson: The company's name is De La Rue, and we often use the metaphor that this company is printing money. Well, here is a company that actually prints money. This company prints bank notes for smaller countries around the world.

Here in the U.S., we are used to the government actually printing our greenbacks here. But in many smaller countries, they actually outsource this function. And this particular company is one of the very small number of companies that actually prints bank notes.

Stipp: So it sounds like an interesting business, but what gives it a wide moat? What makes it hard for competitors to come in on that?

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