Author Topic: CBI - Chicago Bridge & Iron  (Read 155129 times)

TwoCitiesCapital

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Re: CBI - Chicago Bridge & Iron
« Reply #10 on: October 29, 2014, 11:50:40 AM »
Short-thesis articles on SA always give me some concern, but then again I haven't found it useful to dive too deep into them either.  Perhaps that's wrong but SA is fertile ground for pump-and-dump schemes.  I'll offer two notes:

1) Berkshire Hathaway increased its ownership of CBI this summer when the price fell as a reaction to this article.  They now own near 10% of CBI.  I can see CBI being a buyout candidate by Berkshire.

2) Herb Greenberg of TheStreet.com said the following in his June 18, 2014 article (with regards to the short-thesis):

"Ken Hackel, of CT Capital, who wrote the book, "Security Valuation and Risk Analysis" -- and who also does detailed accounting work, and goes long and short stocks -- sent out a note this morning that said:

    CBI was a stock we recommended until last fall and are familiar with its accounting. The stock more than doubled for us.

    I believe the short seller does not have a clear understanding of CBI's 'contract capital' account which does indeed fluctuate greatly and is related to the need for working capital (as well as payments) on projects. Large projects are especially vulnerable.   I don't always agree with Ken, but he does know his accounting and I have a history with him being significantly more right than wrong."

Would agree here. I've read Ken's book and it's clear he has a strong grasp of accounting. I'd take Ken's accounting analysis over some unknown any day.


HWWProject

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Re: CBI - Chicago Bridge & Iron
« Reply #11 on: October 29, 2014, 09:18:13 PM »
Thanks.  I'd never heard of Ken Hackel prior to researching CBI.  I've just done some research on him and went ahead and ordered his book.  Should be a valuable aid in performing DCF analysis.
"An Investment in Knowledge Always Pays The Best Interest"

handycap5

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Re: CBI - Chicago Bridge & Iron
« Reply #12 on: November 03, 2014, 10:55:08 AM »
has anyone done any real work on the carrying value of shaw's contracts and the goodwill and how this all works? in my experience, re-booking an acquisition as many times and as long after the closing is highly unusual. rather than discuss this by proxy, can anyone start a conversation on the substance? if i owned the stock, i would want to explain this in reasonable detail. this is why there may be an opportunity in the stock, and also why the stock is (perhaps rightly) cheap. thanks!

100 Shares

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Re: CBI - Chicago Bridge & Iron
« Reply #13 on: November 13, 2014, 08:20:20 PM »
Here goes my first post. I've been an observer on this board for a year or two now and decided to finally make some noise.

Anyways, I'm honestly surprised more discussion hasn't occurred around CBI considering Todd Combs and Joel Greenblatt have significant positions in it. I didn't buy it because they own it but I definitely started to look into once I saw the price come down to the 60s.  At first I found the negative cash flow concerning but after digging into it I decided to invest. As an observer I couldn't find much analysis of the company on here and none on value investor's club, so as a newbie to investing I took independent research to a new meaning on this one. I've wrote an article on just one part of what I discovered when doing my research here: http://seekingalpha.com/article/2660735-chicago-bridge-and-iron-temporary-negative-cash-flow-leads-to-golden-opportunity . Would love to get some more discussing about CBI going on here...

jouni1

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Re: CBI - Chicago Bridge & Iron
« Reply #14 on: November 14, 2014, 10:51:56 PM »
i sort of like it at these levels too. don't have much to add yet, must dig in a bit  :P 

MrB

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Re: CBI - Chicago Bridge & Iron
« Reply #15 on: November 26, 2014, 11:21:53 AM »
Interesting take on the Vogtle/VC Summer delays/overruns

http://ansnuclearcafe.org/category/reactor-designs/westinghouse/

HWWProject

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Re: CBI - Chicago Bridge & Iron
« Reply #16 on: November 26, 2014, 12:51:32 PM »
Great article 100 Shares, and thanks for the link MrB.  I'm feeling much more comfortable with my own analysis and entry point into CBI.  Hope to own this one for years.

"An Investment in Knowledge Always Pays The Best Interest"

KCLarkin

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Re: CBI - Chicago Bridge & Iron
« Reply #17 on: November 26, 2014, 01:37:20 PM »
Interesting take on the Vogtle/VC Summer delays/overruns

http://ansnuclearcafe.org/category/reactor-designs/westinghouse/

Great article, thanks. Will CBI will be reimbursed for the cost and schedule overruns caused by the design change? CBI management seems pretty confident that they will.

MrB

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Re: CBI - Chicago Bridge & Iron
« Reply #18 on: November 27, 2014, 08:36:43 AM »
Interesting take on the Vogtle/VC Summer delays/overruns

http://ansnuclearcafe.org/category/reactor-designs/westinghouse/

Great article, thanks. Will CBI will be reimbursed for the cost and schedule overruns caused by the design change? CBI management seems pretty confident that they will.

Settlement seems most likely. The following is one of the better reads I've found.

http://www.georgiapower.com/docs/about-energy/9th-10th-VCM-Report.pdf

You can also scratch around here
http://www.psc.state.ga.us/factsv2/DocumentSearch.aspx?status=&docketNumber=&documentNumber=&desc=vogtle&company=&industry=&filingFrom=&filingTo=&receivedFrom=&receivedTo=

KCLarkin

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Re: CBI - Chicago Bridge & Iron
« Reply #19 on: November 27, 2014, 09:04:05 AM »
Settlement seems most likely. The following is one of the better reads I've found.

http://www.georgiapower.com/docs/about-energy/9th-10th-VCM-Report.pdf

You can also scratch around here
http://www.psc.state.ga.us/factsv2/DocumentSearch.aspx?status=&docketNumber=&documentNumber=&desc=vogtle&company=&industry=&filingFrom=&filingTo=&receivedFrom=&receivedTo=

Thanks.

Quote
In February 2013, Chicago Bridge & Iron (“CB&I”) acquired Shaw Group and
immediately transitioned as Westinghouse Electric Cooperation’s (“Westinghouse”) consortium
partner at the Vogtle 3 and 4 site. This change resulted in key leadership changes and the Company has
seen overall improvement in the Contractor’s transparency, cooperation and communication as well as
execution with a focus on quality and schedule.