Paul, thanks for your response.
Of course, I got a fill on my limit order at 72.25 before I knew
there was a major negative report out.
From the report, a lot of the stuff hammering CBI from the
Shaw acquisition appears to stem from the two nuclear projects
Shaw was building in the southeast - one in Georgia and one in
South Carolina.
The Prescience report seems to imply that the contracts Shaw
signed to build these nuclear plants had major fixed cost elements,
and that CBI is using accounting trickery to now hide having to
recognize the construction cost over runs, the delays, and
some major rework that had to be redone.
Given the past history of nuclear plant construction in this country,
if Shaw was dumb enough to sign fixed cost contracts and then
CBI (and their financial advisers) was dumb enough to not recognize
these contracts as a major risk issue in their vetting process, then
that would call into question the competence of their senior
management to me, and their whole decision making process.
I've liked CBI in the past because they've literally been a very
competent nuts and bolts type of company in the engineering and
construction sector and have been solidly profitable over the years,
as you pointed out. They've shown they know how to get stuff
engineered and constructed, and how to bid on projects so as
to make a very decent profit
The options on CBI went totally bonkers today.
I'm guessing we go down some more from here.
|
