Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (21712)	7/20/2005 11:08:25 AM
From: Bob Rudd	Respond to of 78998

Paul - STV: Thanks for the kind words on this. Took half of original position off the table today. I've become uncomfortable working this far above FCF 'Safety net' Clearly the growth and momentum are strong and potential demand could continue to drive both...so I've retained half the position having covered my original cost + 80% profit with the sale...I'm working on 'house' money from here on. The case going forward is that substantial infrastructure needs exist in the Houston and greater Texas area..especially sewer..which increased hurricane frequency is drawing attention to. Combine this with oil/gas related tax revenues [Texas is still a major beneficiary of this, though not to the extent it was in early 80's] to fund infrastructure and you have the basis for continued growth and an attractive story. There may even be potential for a takeover by a larger construction firm that envies the Texas position of STV, but I doubt this occurs since ownership change could jeopardize the Steel City tax loss carryforward that shelters income. Speaking of success with construction firms congratulations on hanging in with URS and SGR quite a bit longer than I did with good results.