KBR, Inc. (NYSE:KBR)
A global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors.
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Excellent backlog. No longer burdened with Haliburton corp cost structure.
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Friendly with big goverment
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Iraq is far from over and they run the daily ash and trash for the Army. They will turn right around and start digging for Oil when they are done getting shot at.
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Will start to clear debts sooner than expected.
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Good financials and a division ,now, of Hal..
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Could easily double if they raise thier margins now that it's a separate company.
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This company controls almost all of the contracting in Iraq, and elsewhere out military is.
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There are 2 divisions in KBR - Energy/Construction, and Gov't/Infrastructure.
E/C is lining up projects that sequential, but be careful if you see a project behind schedule. One bad project can kill the earnings of 10 successful ones.
G/I will see some downturn due to tighter Congressional overwatch; the troops will not be leaving Iraq soon en masse; watch KBR's competitors (aka Bechtel) to see if they continue to pull out of Iraq. KBR will be the last to pull out, but the key will be how fast KBR becomes the last big contractor.
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If you've been to Iraq or Afganistan than you know who KBR is and when it comes to throwing tax dollars away this company is collecting it all. As long as we are in Iraq I will be in KBR.
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Need a liquified gas plant constructed? With its spinoff from Halliburton this company gets a chance to run on its own..one of the better E&C companies out there.
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