Chicago Bridge & Iron Co fka CBI

[alanrknight911]

The truth is, this stock will probably release more losses next quarter. When they say that they have a "back log", what they mean is that they are negotiating contracts and might get them. We've got to have an understanding of how this works. Even if they have preliminary engineering, until that contract is signed, the client can pull out and head over to another EPC to get a less expensive contract. Do some research. Even if they do get contracts (though it's not looking good right now), have they charged enough? Have they been thorough in their analysis of the scope and schedule? What kind of contracts are they getting? Lump sum? Great! They promise to deliver an end product for a fixed price to the tune of billions of dollars, and half of these contracts are conducted by people that won't even be at the company after the first year or two of the contract's signing. Their best bet is to make things look good now, and split before the truth hits.

For example, look at WHO is suing CBI for $2 billion: Reficar has hired CBI's CHIEF COUNSEL.
http://www.fbfog.com/wp-content/uploads/2015/04/0914468CV.pdf

Read page 9. It states: “CB&I seeks to undermine Reficar’s choice of counsel in a dispute that is building about CB&I’s PERRFORMANCE OF THE PROJECT[]”; (2) “[T]he only potential ‘dispute’ between CB&I and Reficar is whether CB&I has performed under that unambiguous contract[]”; and (3) “This lawsuit is a preemptive strike, through which CB&I hopes to hamper Reficar in any future arbitration by attempting to deprive Reficar of its chosen counsel and gain discovery of confidential information that would be beyond its reach in any arbitration dispute between CB&I and Reficar.”

CBI tried to counter sue Reficar and failed. These may not be performance factors that are isolated, and if so we may see the same thing on other current projects when the company has reported for the next quarter. Usually, when a portion of the apple is bad, the rest soon follows, if it is not already rotten beneath the shiny red skin.

The truth is this could be a conflagration ready to go up in flames. The truth is management is getting moved around, so say goodbye to accountability.

Executives are selling stock, not buying it.

And, has anybody thought about the 3 completely unrelated deaths that just occurred at separate CBI construction sites around the world? What client in their right mind will want to hire a company with such a shoddy safety record?

Last but not least, this company IS tied to the oil and gas market. Who are their clients? Cameron, Shell, BP, Kinder Morgan, etc. If oil drops, capital projects drop at these companies, fewer contracts are signed, and CBI looses. This IS directly related. Sure, they have a couple of contracts with companies that have nothing to do with the oil and gas market, but their largest clients are directly exposed. This by chain reaction gives CBI direct exposure.

I would sell this stock and fast.