Chicago Bridge & Iron Co. (CBI)

This is an example of a name that he had owned, where he had got stopped out. He loved the name, so got right back into it. It had quite a rebound and he ended up taking his money off the table. If you own, he would recommend that you stick with it.

(A Top Pick April 4/14. Down 41.36%.) Made some money on this and sold her holdings at around $70. The largest energy engineering company globally, and at that time she was really focused on LNG. A few years ago they bought a company called Shaw, which was in the nuclear space. With that acquisition they inherited a lot of projects, and things got worse and worse with delays and expenditure overruns. Started reporting quarters with big negative cash flows.

He gives this with a strong advisory to keep your position very small as an initial position. Shares sold off 55% since its highs. Most of the Street is readjusting down on it. He thinks it has been discounted down to a much more onerous scenario than what might play out. Most of their business is from the downstream liquefied gas. The riskier part is not a big a part of their business. Yield of .72%. Only take a 1% position in this and make sure you have a stop in it.

There are quiet whispers regarding the accounting within the company. If it went above $42.92 he would be more positive on it and they need to quiet the whispers on the accounting side.

Was a top pick of his. There is no support or resistance on this chart. It has been in free fall. He likes it because of valuation. Thinks it has great value here, but he does not know where the bottom is.

Model price is $63.78, a 36% upside. However, in the past, the accounting has been questioned. If it were to trade above $59, you are okay, but if it were to trade below $43, it is going to go an awful lot lower. Also, the accounting cloud is still hanging over the company.

Even though Warren Buffett took a big position in this company, he has had too many bad experiences with cost overruns and bad accounting. Has no interest in going back into the sector. There was a downgrade on the stock today. It has a lot of leverage and exposure to energy markets and LNG.

There have been “soft whispers” of accounting impropriety. His model price is $59.08, a 23% upside. If this market comes under pressure again, $41 is a distinct possibility. He would like to see this cheaper.

Energy infrastructure. Was a top pick within the last year. She is down and she sold it since. Acquired a nuclear plant building company, but it takes time to build nuclear plants and it is draining their cash flows. There is a disconnect between earnings and cash flow and people can’t figure it out. So she exited the position. Warren Buffet is buying so they know something she does not.

Speculation that they are manipulating the earnings. It is a play on LNG and the infrastructure that has to be built. These guys are a pure play on this. He is thinking about this one.

This has been really hurt this year. He is keeping an eye on it. It is probably one of those classic Warren Buffett type value plays. At these levels, he would start watching it. Wait for it to consolidate a bit and then take a position.

125 years old. Big time engineering and construction infrastructure company. Lots of government business from around the world. They do the fabrication and erection with big projects. They are now getting into LNG plants. 3.2% yield.

(Market Call Minute.) This will benefit if the US ever gets its act together on its failing infrastructure. The number of bridges, highways and aqueducts, that need to be replaced, are worth trillions of dollars.

This is showing a lot of volume on the drop. There have been a couple of little rallies, but new lows being made each time. Definitely in a downward trend. Next support level is at about $60, and he feels it has the potential to get there. Selling volume is stronger than the Buying volume. If it made it up to $73, that would be a reversal.

One of the oldest and largest energy infrastructure companies globally. They do everything from the front-end engineering work to construction, operations, maintenance and reclamation. In the last 10 years they’ve been on a bit of an acquisition spree and bought a lot of companies to gain access to new areas that they did not have. They were the 1^st ones to build import LNG facilities in the US. Have won some big projects recently and their backlog is very large. Earnings have doubled over the last 4 years which should continue. Yield of 0.32%.