SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Graham Osborn who wrote (55341)5/24/2015 11:05:48 AM
From: Asymmetric1 Recommendation

Recommended By
E_K_S

  Read Replies (1) of 78711
 
You forgot to point out that CBI also carries a lot of goodwill on its books as well.

Probably knowing what they know now, the Shaw Group acquisition would have
been structured much more cheaply. Kind of reminded me of the Boeing acquisition
of McDonald Douglas many years ago. Boeing was appalled at how outdated
McDonald Douglas' infrastructure/technology was and how they had been designing
planes, only after they had finalized the takeover. I heard that directly from a
McDonald Douglas employee.

So the question became for me, that given the negative cash flow, stemming from
problems with the construction and cost overruns at the Vogle nuclear power plant,
and large amount of debt and goodwill taken on with the takeover of Shaw, was
it worth holding on. You may not like the answer, but faith that the problems were
temporary, and that CBI had excellent management led me to believe they could
turn their financial situation around given time. I am not unfamiliar with large
EC projects, and have known of CBI's excellent reputation in this sector for many
years. The awarding of the Mozambique LNG contract allays investors fears on
two fronts - that large contracts/projects in the energy sector were a thing of the
past, and that the strong dollar would make U.S E&C companies uncompetitive.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News