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What are you buying today?


LowIQinvestor

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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.  ;)

 

 

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YNDX USAC

 

You get into USAC at sub-17.00?  I was traveling yesterday and it looks like I missed my opportunity to expand my position at a better price.  12% yield for USAC is a bit ridiculous, unless one thinks that we are no longer going to need oil and gas compression equipment. 

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YNDX USAC

 

You get into USAC at sub-17.00?  I was traveling yesterday and it looks like I missed my opportunity to expand my position at a better price.  12% yield for USAC is a bit ridiculous, unless one thinks that we are no longer going to need oil and gas compression equipment.

 

Yep, thank you for the idea! I think it's priced for a 50% dividend cut.

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YNDX USAC

 

You get into USAC at sub-17.00?  I was traveling yesterday and it looks like I missed my opportunity to expand my position at a better price.  12% yield for USAC is a bit ridiculous, unless one thinks that we are no longer going to need oil and gas compression equipment.

 

Yep, thank you for the idea! I think it's priced for a 50% dividend cut.

 

Remember that the subordination period hasn't ended.  If they cut the distribution, the subordinated units will get their distributions whacked first. 

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Guest longinvestor

Nothing. Just sitting tight on my BRK & enjoying the thought of attacks of euphoria in Omaha whenever there is a swoon in the market.

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