Chicago Bridge & Iron Co. (CBI-N)

They help build infrastructure for the chemical and energy sectors. They were supposed to merge with a similar company to benefit from synergistic cost savings. This is at risk to falling apart as private equity has come in to potentially take out the other entity exclusively. He calls this a hold.

Closed at $18.69, and his model price is $22.97, a 23% upside. There was a hint of some accounting irregularities, and he thinks the bad news is out and the stock looks like it is recovering. On earnings, the mean estimate for 2018 is $1.88, so it is 10X earnings. An infrastructure play, and you can’t get any better than that. Had a positive transit of EBV +1 this week.

(A Top Pick Dec 1/16. Down 51.44%.) When he picked this, it was cheap, had a good balance sheet and was in the right area of infrastructure spending. Then energy went for another dump in the tank, and none of the infrastructure spending ever came through.

This has been under pressure and it has been tough. He would just get rid of it if you own. It is under fundamental and technical pressures.

It struggled. It is a global infrastructure play that has not done well. There are better ones to play. Sell into any rally you get.

This got crushed this week. They had a poor earnings call, but the following sell-off each day was probably sentiment of Trump’s infrastructure package getting delayed, or taken off the table entirely. Their backlog is still pretty good and valuation is about 4.5X earnings. He likes this is a purchase at this time.

The long-term track record is actually quite good. However, they are going through some tough times at the moment. Results haven’t been that great and there might have even been a lawsuit against them. They are building in the oil/gas area which has not been great. There will probably be a better opportunity to get it at a lower price. He likes this long term.

A solid company. For the most part, this is probably a Buy. Good ROC, and the valuation is pretty reasonable.

The kind of torque that he thought he would get from an industrial name. It felt like a Trump stock. He still likes it. They have been plagued by a decline in oil prices and oil drilling activity, because they are still perceived to have a very big oil/gas drilling business, but thinks it is lower than what people think.

Just recently bought this. It has definitely lagged in the engineering/construction space. There is a lawsuit with Mitsubishi regarding some nuclear business, which hasn’t been settled yet. That has hung over the stock. This fits into the value/cyclical bent that we need to start revisiting. It certainly plays into the whole game with respect to what Trump is trying to do in revitalizing infrastructure. Because of its always seemingly higher oil/gas exposure, this is another reason it has lagged, but could also be one of the catalyst that drives it out. Trading at 7X forward earnings only.

He likes this company. It is a smaller play, so it is going to be more volatile than the overall market. If you are bullish on fossil fuel prices, you should be even more bullish on this company. It trades at a very low PE valuation. It has long-term promise as it spreads its business overseas.

Essentially an infrastructure stock with about 60% of their business focused on energy, of which LNG is a big part. They also do a lot of general infrastructure work. The stock is cheap. Dividend yield of 0.83%. (Analysts’ price target is $36.08.)

Not for the faint of heart. They are in construction and she has been seeing some good activity in that space. This one hasn’t participated as much because of the parts of the market they are in. They do petrochemicals as well as LNGs, and a lot of projects are being delayed. Estimates are coming down and guidance is coming down. They’ve had execution issues. Also, there is a $2 billion+ lawsuit they are getting accused of. If you can stomach the volatility, this looks like a good entry point.

(A Top Pick Jan 27/15. Down 7.61%.) This would come up as a very strong Buy now. Got stopped out in the summer, but he had done very well on the name. Exposure to infrastructure contracts in oil and gas has driven this down. An international company, headquartered out of the Netherlands. It looks attractive and is probably a good buy down here.

Took a very hard look at this 2 years ago on the thesis that American infrastructure is falling apart. There are thousands of bridges in the US that need to be replaced, tens of thousands of miles of roads and highways that need to be rehabilitated. He thought that surely somebody was going to spend money on infrastructure in the US, and this company would benefit. The problem is the deadlock in the US Congress. Everybody understands that money has to be spent on these things, but Republicans don’t want to do it while Obama is still in office. If you think a Republican will be elected as a president, this would probably be a good thing to buy.