Foster Wheeler Ltd. (FWLT)

Joel Greenblatt Pick

Technically bullish + its in the ranks of all that spending the silly government is doing. We can't fight the tape. FWLT going higher, enjoy the run

Stock is still pretty cheap compared to some others in this space. I think the contract bookings are currently doing OK given the current economy, and they should pick up with rising demand and commodity prices.

Screened some Magic Formula stocks through my brain and ended up with 10 new picks.

Good cash, good balance sheet. It'll be relatively depressed until the global industrial gears get fully rolling again but I look to see this company go far in the next few years and beyond. They have a strong foothold in some of the major emerging world markets so that's never a bad thing.

Just bought in this in real life. The P/E is below 10 on a huge company thats been around for years. Plus, the balance sheet on this company looks quasi-perfect, with more than double the amount of cash needed to pay both long and short debt. Probably won't bounce back for a while, but in the long run I believe that this company will outperform along with the other beaten down sectors.

All that sitmulus spending has to go somewhere and FWLT is in a great place to take advantage of it.

R

capital outlay for major corporations will lead the way out of the recession for the Industrial sector.

Rated 5 stars.

Following BullishBabo. Foster Wheeler provides engineering services to a variety of industries. The stock is trailing the market for the past two years, but it has been catching up in recent months. I believe that Foster Wheeler's stock price has room to grow as infrastructure projects pick up steam.

great investment stock.

portefueille

Me, buying cheap stocks only

Good growth and earnings.

Recent run-up - due for correction with rest of market.

Strong Q2 results
Broad geographical reach
Strong Cash Flow

They had a poorly timed share buyback, but that was out of their control. (they bought shares back at ~ $26.3/share right before a large dip in price)

FWLT has implemented cost savings which added to last quarter's good report. The cash flow is a constant.Backlog has grown 10% to almost $2 billion.
If the banks ever start lending some serious money, CAPEX expenditures will go forward around the world. FWLT is also an oil play which should bolster the stock later in the year , as energy will once again be the sector du jour. Should the world dig itself out of this horrid recession, FWLT was be a major mover.
Unfortunately, the stock does not pay a dividend. This is a major drawback to the stock's value as no company should expect investors to sit and wait while receiving no returns for doing so , My own mantra is that every NYSE company should pay a dividend. BUCY, for instance at least pays a pathetic .30% dividend. You might think that FWLT which has a constant free cash flow would pay some paltry dividend..But they do not. Boo to you FWLT !
Nevertheless, although I hate stocks with no dividends, FWLT will double in years to come. So will FLR, whose performance has been non-existent.

Oil industry needs engineering as they drill deeper and deeper.

The time frame is right for this stock. They are breaking out to pass $30 a share and are going to move towards the price they should be on paper. I see them hitting $39+ over the medium term on good economic indicators and at least a steady price on oil.