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Strategies & Market Trends : Value Investing

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To: Mike 2.0 who wrote (6172)3/3/1999 1:14:00 AM
From: Brendan W   of 78890
 
Any opinions on Foster Wheeler? This is an S&P 500 company in engineering and construction.
o Market cap is around $488 million on a price of $12, equity $572 million (about 85% of market cap)
o dividend yield is 7%
o debt is around $1 billion but management is planning on asset sales and a preferred issue to bring this down substantially. Valuline rates the financial strenght at B++.
o Rev's are about $4.5 billion with a PSR of about .11. This is very low historically for the company.
o The stock price is 75% off it's '97 high and trades at levels not seen since the '87 crash when it generated about one third of current revenues and cash flow (on a per share basis).

I'm taking a small position.
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