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

To: Graham Osborn who wrote (55654)	7/10/2015 12:34:30 PM
From: E_K_S	Read Replies (2) \| Respond to of 78644

Re: CBI Remember to adjust BV for a portion of their Goodwill. They also are involved in pending litigation regarding cost overruns on a nuclear plant project w/ partner Westinghouse Electric (parent Toshiba). I am not sure what the total damages could be and I suspect it will be in the courts a very long time. Internet chatter thinks that $600mln could be the high end of overruns but any settlement (ie damages) would be much lower. I do like their growing book of business w/ another new contract announced today. CB&I Announces Maintenance and Construction Award in Canada THE WOODLANDS, Texas, July 10, 2015 /PRNewswire/ -- CB&I (CBI) today announced it has been awarded a five-year contract valued at approximately $50 million to provide maintenance and construction services for a fluid coking unit in Alberta, Canada. ------------------------------------------------ I did not discount my valuation by either of the above. There may be some merit in discounting their BV by a percentage of their stated Goodwill. The company litigation may/could be covered by insurance but any good contract would have contingent liability clause on some or all of their uncontrollable cost over runs like those that the NRC imposed on the project. Also, if you set your valuation standard too high, you will never buy anything. :-) EKS