Bought CBI common and 2017 $30 calls. Currently trading sub-8x 2015 P/E per management guidance of $5.75-6.05 EPS. Much lower than peers.
Two perceived problems with the company:
1) Bad nuclear contract - huge extras that may or may not be collected. One-time issue. Management is eager to buy back shares once this matter is resolved.
2) Low oil prices lowering future work demand - this is a known problem. Company has $30B backlog which is equivalent to 2-yr of revenues. Management commented during Q3 CC that they are somewhat insulated due to their diversification into various other infrastructure work.
Btw, today's price is about 30% lower than when Todd Comb bought them in 2014Q2. BRK owns almost 10% of CBI.
