yes its too low, but they need their cash for running the business. larger cash reserves, means a greater willingness to bid on large, risk projects. so far the upward trend on backlog indicates things are going well, and as long as margins on each job keep with un upward trend, all is good. lets watch them wittle that debt from the Shaw purchase at least in half before we get greedy for divvy.
well , I can only hope we are right. I'm patient enough not to let Wall Street momentary valuations get me to give up. By that i mean that major E&C companies usually trade about 12-18 Xs forward earnings. We are currently well below that range, and earnings have been increasing. So, there should be good news ahead.
need oil price to stop dropping. the street can't separate energy names based on the kind of business they are in. see also PSX, SLB, JEC
i think that is too hard a question. on paper, i see the debt hanging there, and i don't see the expanded earnings to pay it off quickly. on the other hand, the margins we are getting on recent sold work, look much better than before the purchase. its always good with one less competitor.
agree. nothing in a slight oversupply of world oil markets has much impact on PSX markets or margins. no slow down in process to monitize US abundance of nat gas and condensates. PSX is in the sweet spot. Energy ETFs are likely adding to the selling although they can't seem to discriminate between commodity and value chain names in the energy space.
its all about the weather. somebody remind me to see my stake BEFORE the weather starts to thaw in March. Much of the premium in the stock price is hope for a colder than normal winter. So far so good. And its so much easier to hope for a cold winter when you live on the beach in SoCal, Fight On!
what part of double digit revenue and income growth is giving you pause? We are selling for less than 10X next year earnings. compare that to KO, or PG, IP, HON, or other industrials that have about twice the PE ratio.
cost over runs never "happen" during the last couple months of a multi year project. They may finally be reported then, or the management may have unrealistic hopes that costs will suddenly turn around, but most projects go over budget way early, when the scope of the project exceeds that on which the original estimates were based. never yet see a project where final construction, and commissioning expenses turned out way less than planned. Doesn't happen.
very funny. demand for oil increases in unbreakable lockstep with economic activity worldwide. agree with your hidden premise, if a bit sarcastic. last time SLB took a 1/3 price hit was Summer 2011. it took a full 6 months to get half that drop back. expect more or a V pattern this time. should be back in mid 90s by XMAS.
i see the shadow, but it should be fading with time, and all the work that has been sold with good margin since that time. stocks are supposed to be about the future, not the past. i remain convinced that a year from now anything below 70 will look like a good entry for a long term hold . I'm willing to wait and see. Had a similar experience with Kinder Morgan, and that has worked out just fine, with a very similar attitude on the part of the two managements in the face of unrelenting criticism and short attacks. what would change my mind is if a couple of the client markets would lose momentum, and start in spending reductions on new projects. I just don't see that with $4 US natgas.
if it gets from 55 to 90, then all the chartists, and momentum people will pick it up and drive it way above your target.
reliable 9% div puts a solid floor down right here . going to double down, but this time with in the money options. target date for recovery is Feb. People always buy energy names when its been cold for awhile.
similar price action, on better volume compared to yesterday. the short story must be getting a little tenuous. look for another quick 10% of the eventual snapback, as the bogus dialog dies out.
stock price still down 12% over past 3 months despite lack of negative news, analyst blasts. All the company issued data look outstanding. Perhaps its down too much to recover this calendar year, with tax loss timings. But before the next earnings release, i expect it to recover to retrace at least half the bogus decline.