Author Topic: CBI - Chicago Bridge & Iron  (Read 150066 times)

valcont

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Re: CBI - Chicago Bridge & Iron
« Reply #400 on: September 01, 2017, 11:37:47 AM »
For what it's worth I closed out my position at a nice loss.  One would have thought it'd be pretty tough to trip covenants after cleaning up the biggest overhangs but they sure managed to outdo themselves yet again.

Wouldn't you wanna wait until you see the sale of the technology division and the cost cutting initiatives? Unless the management is flat out lying, Cameroon will be net neutral. Don't think the new CEO will take that credibility hit right away.


Picasso

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Re: CBI - Chicago Bridge & Iron
« Reply #401 on: September 01, 2017, 11:43:33 AM »
Just too much thesis drift for me.  Small changes in the sale value of the technology division will have a big impact on the remaining stub value and I don't think they have much fat to cut.  If they could take their time to shop the technology division then I'd maybe feel better about it but still I think there are easier returns elsewhere.

benhacker

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Re: CBI - Chicago Bridge & Iron
« Reply #402 on: September 01, 2017, 12:02:51 PM »
Agree Picasso. I still hold, but feel similarly...
Ben Hacker
Beaverton, Oregon - USA

racemize

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Re: CBI - Chicago Bridge & Iron
« Reply #403 on: September 01, 2017, 12:13:58 PM »
Agree Picasso. I still hold, but feel similarly...

The drift is real!  I just have calls on this one, so if it blows up, there's almost no downside anymore for me.  If the tech sale goes ok, then I'm back to break even I think.

kab60

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Re: CBI - Chicago Bridge & Iron
« Reply #404 on: September 01, 2017, 12:16:02 PM »
Same as Ben. I knew management were dumb as fuck but liked the odds. Unfortunately they surprised me to the downside. What I most regret is not dumping the toad when they moved their earnings release. It smelled fishy (conflicting schedule... Hrmmm... Only creditors come before equity holders...), but I didn't act. I've generally been sucking my thump at the wrong time and hitting sell at the absolute worst time. It seems we've been handed a helping hand from a hurricane, but hopefully that's now a recurring theme. Tech biz was always downside protection, but I sure didn't expect them to trip their covenants, and now the clock is ticking. PE shops are loaded with cash at the moment, but CBI put themselves in a bad spot, and buyers know that. The recent sale doesn't exactly instill confidence in their shrewdness. Plus, we're left with an EPC business post a transaction - not exactly a biz that makes one drool if management is useless.o

(So why am I holding? I think the tech biz should fetch a nice price, and if they still have preferential access to the tech it should be worth more than where it's trading at. The unknowns are the cost overruns, and that's the thing that's making be nervous since I don't trust management. I'd expect a new leadership to kitchen sink, but perhaps it was difficult due to pressure from creditors).
« Last Edit: September 01, 2017, 12:23:04 PM by kab60 »

gurpaul88

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Re: CBI - Chicago Bridge & Iron
« Reply #405 on: September 01, 2017, 01:38:31 PM »
Management should have been offed a while ago on this one.


mwtorock

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Re: CBI - Chicago Bridge & Iron
« Reply #407 on: December 19, 2017, 11:58:08 AM »
this is painful lesson for me. i had my read of the flags of issues since shaw acquisition, but Berkshire purchase blind me of all the issues. although i has been out of this name for a while now, the wound is just as fresh. since then i have been really careful about coattailing...

muscleman

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Re: CBI - Chicago Bridge & Iron
« Reply #408 on: December 20, 2017, 08:41:53 AM »
this is painful lesson for me. i had my read of the flags of issues since shaw acquisition, but Berkshire purchase blind me of all the issues. although i has been out of this name for a while now, the wound is just as fresh. since then i have been really careful about coattailing...

We all learn lessons. Hopefully this painful lesson helped you avoid VRX