Duplicate the layer (Layer > Duplicate Layer) and render it (Layer>Type>Render Layer or Layer>Rasterize>Type for Photoshop 6), then go to Edit>Transform>Scale and drag down the middle node as illustrated by the arrow...
...and your duplicate layer should look like this. As you can see, I've kept the bottom "Pragt" squashed down just a bit.
Next go to Filter>Distort>Ripple and set the Amount to 100 and Size to Medium.
After that, reduce the layer's opacity to about 40%.
Now go to Edit>Transform>Perspective and drag one of the nodes in the lower corner to flair out the rippled text. By doing this, the rippled text looks like it's reflecting from a flat surface.
The end result. Fast, easy, and can be very effective when you need a reflection.
HINT: Use a light background and instead of rippling, make black text with a gaussian blur to cast a long shadow. As you can see, the possibilities are endless. Enjoy!