subject: Daniel Frishberg Offers Advice on How To Avoid The Past [print this page] Daniel Frishberg Offers Advice on How To Avoid The Past
How to avoid being stuck in the past. You invest for the future. The past is gone.
I mentioned yesterday 2 ways of investing. One for visually challenged people, who have no confidence in their own analytical ability so they want a little of everything, so they can be pretty wrong all the time.
Smarter investor is waiting till you have a high degree of certainty about what is happening, then do more high octane investment. I stay away from proxy attles, acquisitions, contests for who is the best computer chip. This stuff has a high degree of error. You aren't going to get them right that often.
How about this. I see a pretty high degree of certainty that China is going to create electricity out of all the coal they can get. You want to manage a high octane investment, wait for a solid rally then go for it.
So while we're waiting for this little backup or correction to run its course, which it will in a few percent, by my market xray.
I'll give you a couple of things to study that I think are very high degree of certainty Good things to know about foster wheeler
Huge contract for foster wheeler.. construction and engineering design company. When they get the preconstruction design contract, it means they obviously have an inside track to get the construction deal also..
Venezuela B.V and Repsol YPF Venezuela Gas, S.A. -The new facilities at the Perla field is designed to have offshore structures, trees, controls, offshore processing, subsea flowlines and export pipelines.
The facilities will also include a linking system between the wellheads and onshore gas plants, together with other utilities facilities.
Longer term, Foster Wheeler believes that world demand for electrical energy will continue to grow
and solid-fuel-fired steam generators ----The fuel-flexibility of CFB steam generators enables them to burn a variety of fuels other than coal and produce carbon-neutral electricity when fired by biomass.
In addition, the company's steam generators can be designed to incorporate supercritical technology, which significantly improves efficiency and reduces emissions.
Foster Wheeler continues to be successful in booking contracts in key end markets, including a large award for the engineering, procurement and construction of a new refinery in India.
The company's success is its technical expertise, its long-term relationships with clients and its selective approach in pursuit of new prospects, where it believes it has significant differentiators.
When they do the front end design work, they have an inside track and a high degree of likelihood of getting the big engineering and construction job In this case, the positive turn in the economy is going to mean it is sensitive to improving world economy.
Its business may be adversely affected by regional, national and/or global requirements to significantly limit or reduce greenhouse gas emissions in future. This is why now is their time. The new direction in favor of bringing certainty and probusiness attitude by government gives leverage to foster wheeler.
Actually pretty easy. First, Foster Wheeler announced a re-initiation of the stock buyback program and a Q3 purchase of 4.3M shares for nearly $100M. Combine that with $500M more in the pipeline and only a $3.2B market cap, this adds up to nearly 20% of the float.
Second, the company announced that it has signed two major deals in the first part of Q4 and sees a further pick up in orders. For a company like FWLT, orders typically trump current period earnings as proxies for the stock price.
Another issue was the recent departure of the CEO. The stock initially sold off following the announcement of his departure in October. Ironically the company greatly lagged under his leadership so it was odd that the market sold off on his departure.
One thing most investors these days get hung up on are whether companies beat or miss earnings estimates. This is perfect for a company at an inflection point. They don't see it. you do.
