Chicago Bridge & Iron Company N.V. (NYSE:CBI)

ranked eighth of top world stocks in ibd. makes steel plate. 99 composite rating and 90 eps rating in ibd. located in amserdam, neth.

Chicago Bridge & Iron is an attractive general infrastructure rebuilding company that will benefit from badly needed US and World infrastructure upgrades and new construction.

CBI at $37.64 or less is a strong BUY for the long-term investor.

Kahuna, CFA
Venture Capital
Portfolio Manager

Current Quarter vs. Prior Year: For the third quarter 2011, analysts estimate CBI will earn $0.64 per share, an increase of 23.48% over the prior year third quarter results.
+66.3%Annualized 5 Year growth rate
Growth Rates
1 Yr 3 Yr 5 Yr
+31.9% +6.0% +66.3%

Earnings beat forecast significantly. Analysts raise forecasts. Sold off today

good solid company

27% earnings growth

Economic recovery...they build the big stuff..2 bagger thus far

Old Faithfull ... since it finished the horrid UK products, just keeps chugging alonh

global gains

Well positioned to benefit from the stimulus

One of the largest players in the next stimulus package

We've had this stock for over a year now and it has performed handsomely so far. Future should be the same.

This company is well run, conservative, has an establish name and reputation and lots of cash to invest. That's all I need to know.

I like it!!!

CBI looks as it would could start a new rally. The margin of safety seems good for me.

Trading at historically low P/E for CBI and relative to the industry. Although hurt by the construction downturn this company has been around since the 1880s and is a survivor poised for better results.

Analyst: Alex Pape
Date: 4/12/2010
Company: Chicago Bridge & Iron (NYSE: SHW)
Market Cap: 2.4b
Price: $23.90

Note: Chicago Bridge & Iron is not in Chicago and has nothing to do with bridges or iron. It’s based in The Hague, The Netherlands, and as for what it does…well, keep reading.

1) A brief overview of the company:
Chicago Bridge & Iron is involved in engineering, procurement, and construction (EPC) for customers in the energy and natural resource industries. The company, which was founded in 1889 and currently has approximately 16,000 employees, is divided into 3 segments:

CB&I Steel Plate Structures: This segment provides engineering, procurement, fabrication, and construction services for the petroleum, water, and nuclear industries. Specifically, CB&I constructs above-ground storage tanks, elevated storage tanks, LNG tanks, pressure vessels, and other specialty containment structures such as nuclear containment vessels.

CB&I Lummus: This segment provides engineering, procurement, fabrication, and construction services for upstream and downstream energy infrastructure facilities. Specifically, they build LNG liquefaction and regasification terminals, refinery units, petrochemical complexes, and a range of other energy-related products.

Lummus Technology: This segment is involved in process technology and provides proprietary technologies used to process natural gas, manufacture petrochemicals, and convert crude oil into consumer products such as gasoline and diesel. CB&I offers licensed technology, catalysts, special equipment, and technical support for customers in the refining, gas processing, and petrochemical industries.

2) What is the competitive landscape?
CB&I operates in a competitive environment, on the regional, national, and global level. Players in the industry compete over technology performance, price, time-to-completion, quality, safety record, and reputation.

So, how does CG&I stack up? They are very competitive in a number of these areas. First, they have one of the best health and safety records among industry players, a characteristic that gets them invited to bid on some projects that competitors simply cannot. Their reputation is likewise stellar; they’ve been in business for 120 years and have long-term relationships with many of their customers. They are also not heavily reliant on any particular customers—in 2009, no single customer accounted for more than 10% of total revenue, and this is a business in which single customers can rack up some pretty hefty bills in a given year.

They also have two other competitive advantages. First, they have their Lummus Technology division, through which they can offer customers proprietary technology that most competitors cannot. Second, CG&I’s global nature (they have about 80 sales and operations offices around the world) makes it able to nimbly shift resources to where they are most in demand. For example, in 2006, approximately 61% of the company’s new contracts came from North America; in 2007, with even more new contracts in North America, that number was only 30%. For some perspective, in 2009 the company executed over 600 projects in more than 70 countries.

3) Is this a good long-term business?

It certainly isn’t going anywhere. Although it is definitely a competitive space, not just anybody can show up and start building nuclear containment vessels or LNG regasification terminals. The buyers of these products are very concerned with the reputation of the builder, and justly so—the failure of one of these products is a huge deal. CG&I undertakes infrastructure projects in a number of sectors—oil, natural gas, nuclear, petrochemical, refining—shielding it from any huge downturn in one of them. And even if such a downturn where to take place, say in oil or natural gas prices, the effects wouldn’t be as significant on CG&I—expansionary plans might get put on hold, but infrastructure stills needs to be maintained, replaced, or updated.

the stimulus program to build , energy needs

A long way to go on this one. That gas is valuable and has to be stored somewhere. This is a risk possibly on the Euro side but long-term it will make headway. It is globally focused as well.