PebbledsPicks (90.69)

November 2009: Fluor Corp (FLR)

November 08, 2009 – Comments (0) | RELATED TICKERS: FLR

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction management, and project management services worldwide.  The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Comments: Why is a consistently growing, profitable, solid, well-diversified, 100-year-old company with 25% of its market cap in cash and virtually no debt trading at 11x earnings? Answer: because Mr. Market is currently in one of his depressed moods, which will not last for much longer. In the past ten years FLR's average annual low P/E was 15.7x and its average annual high was 29.4x for an average P/E of 22.6x. Now, IMO, it's just a matter of time until the market regains its senses. Is FLR going back to $100 any time soon? No, not likely. I am confident, however, that FLR will see $60 sometime in the next twelve months, at which point I will sell it from PebbledsPicks for what should be a market-beating gain.