Two companies reported earnings over the last two days that have helped to give insight into the economic recovery.
Microsoft’s Earnings Impress Wall Street
October 28, 2010 By 2 Comments
Chicago Bridge & Iron Update
October 5, 2010 By Leave a Comment
In December of 2009, I wrote a post about my investment in Chicago Bridge & Iron (CBI). CB&I was one of my Favorite Stocks For 2010. I trimmed my position a little in March to take some profits but still hold the majority of my position. Today, I want to take a look at how my investment in CB&I has performed over the past 11 months.
CNBC Recommends Chicago Bridge & Iron
June 30, 2010 By Leave a Comment
Today on CNBC’s Strategy Session, Patty Edwards recommended a longtime favorite stock of BuylikeBuffett. Chicago Bridge & Iron is an often overlooked stock in the construction and engineering space. I have been buying shares of Chicago Bridge & Iron (CBI) over the last year. Chicago Bridge & Iron is a nice mid-cap play with a decent balance sheet and solid growth potential. This is a long term holding which should maximum appreciation over the next 5 years. Shares trade at just 9 times next year’s earnings which seem cheap based on the projected EPS growth rate of 11.5%. Investors looking for a nice infrastructure play may want to take a look at CB&I.
Chicago Bridge & Iron Is Building A Promising Future
March 9, 2010 By Leave a Comment
Chicago Bridge & Iron (CBI) has had a 22% rise since I first recommended buying the stock in December of 2009. The company recently reported results for the full year 2009. For 2009 total revenue was $4.6 billion dollars. Net income came in at $174.3 million dollars and earnings per share was $1.79. Chicago Bridge & Iron picked up over $3.4 billion in contracts in the fourth quarter and $6.1 billion dollars in new contracts for the full year. According to CEO Phillip Asherman, CB&I has over $300 million in cash and a backlog of $7.2 billion in orders.
The stock still looks like it has upside. The balance sheet is solid and shares still look cheap selling at just 13 times this years earnings. CB&I is selling at a .41 price to sales ratio. To be fair Chicago Bridge & Iron’s price to book ratio is definitely not cheap with a value of 2.7. Management appears to be doing a solid job managing a 24.4% return on equity for 2009. The company tempered investor expectations for 2010 by guiding earnings downward. Any upside surprise in earnings for the current year and shares should rise. The real earnings story for CB&I is in 2011 when the average EPS is $2.15 meaning that the stock is trading at just over 10 times next years earnings. I have been long Chicago Bridge & Iron since last year and will continue to buy shares as long as the stock stays south of $24.
Photo by laffy4k
