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Teacherman1 (47.48)

What's in a name?

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August 13, 2009 – Comments (1) | RELATED TICKERS: CBI

I find it fascinating that a company named Chicago Bridge and Iron, in neither located in Chicago, nor does it construct bridges. What it does do, and very well, is provide world wide "turn key" design, engineering and construction of large energy infrastructures for the LNG and Petrochemical industry.

It is headquartered in The Hague, the Netherlands, and has its world wide administrative offices in the Woodlands (just outside of Houston).

They are making money and have been for a long time. They had a small loss in 2008 because of a non-reoccuring event. They have been on an buying binge for a number of years, which culminated with the  acquisition of Lummis in 2007. This accounts for the large amount of goodwill currently on their balance sheet, which gives them a negative "tangible" net worth.

Due to the nature of their business, they carry a large amount of receivables and payables, but have virtually no long term debt.

They were upgraded from hold to buy by Stifel Nicalous in late May.

They are currently up over 50% from when I bought, but are still less than half of their "pre-world crash" price. They even pay a little dividend.

I believe they are a good longer term investment for the patient investor and think they are worth a look.

As always, this is JMO and worth exactly what I am charging for it.   

1 Comments – Post Your Own

#1) On August 13, 2009 at 8:00 PM, mystickmarket (< 20) wrote:


Regardless of the deficit there will be no tax increases ever again because that

would be political suicide. And remember, tax payers don't pay a penny of the

bailout or stimulus either. There is NO dollar dumping! It's 2002-2007 all over

again. Short the dollar, buy oil and Euros. Buy MA POT GOOG. We just

good articles; my newest bookmarked finance site ..http://www..
hat tip: finance news & finance opinions

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