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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: anializer who wrote (37869)	5/12/2010 12:46:48 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

RE: Fluor Corporation Common Stock (NYSE: FLR) - ROE: 22.92% Chicago Bridge & Iron Company N(NYSE: CBI) - ROE: 22.11% Shaw Group Inc. (The) Common St(NYSE: SHAW) - ROE: 4.36% OK anializer I will go with your analysis for FLR. ROE is pretty good for FLR & CBI. (SHAW's ROE is effected by their huge loan from Hitachi for the purchase of their Westinghouse nuclear division which is based in YEN and losses/gains are adjusted quarterly affecting net income returns.) The market agrees with you too as FLR up 6% and CBI & SHAW up 4.7% and 3.9% respectively. It's true that the institutional investor will go with the "best of breed" and will pay a premium for that. PE is also a lagging metric and even the forward PE can be a bit misleading for these companies as their projects can last multiple month's/years. Therefore, the change in their backlog book orders is the thing to watch. It has been growing for all of these companies. The key for selling is to let your last shares go when things are looking the best and new buyers will pay an extra premium for all the good news and strong earnings of the company. My only reservation was none of these companies pay a dividend and I want to book some type of gain to reflect my holding cost while I wait for those double digit returns. So, I took 20% of the gains off the table earlier this month. I will continue to hold my shares and try to be a patient value investor even as Mr. Market jumps up and down digesting the world's economic events. EKS