Did you miss-out on purchasing Fluor's shares last winter? Take heart, FLR is headed considerably higher. I'm Reiterating my Buy rating for Fluor (NYSE: FLR), first recommended on February 17, 2009 at a price of $39.12. The low-down on FLR:
Fluor is a leading international design, engineering, and contracting firm with projects that include designing and building manufacturing facilities, refineries, pharmaceutical facilities, health care buildings, power plants and telecommunications and transportation infrastructure.
Why is Fluor favored here? Even though oil & gas work demand is expected to decline in 2009, Fluor should benefit from federal spending in President Obama's $787 billion fiscal stimulus package to help jump-start the U.S. economy, with FLR's energy and government units receiving more work than its infrastructure unit.
In addition, when major oil/gas and electric power companies resume their long-term capital projects, that will serve as another revenue catalyst that will benefit Fluor's shares. The FY2009/FY2010 EPS estimates for FLR are $3.81 to $3.39.
Stock Analysis: Fluor is a moderate-risk stock. If you've already purchased FLR's shares, hold them. If not, consider buying a 25% position in WAG now; then buy another 25% in three months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your FLR position before October 2009. Sell/Stop Loss if you were to buy shares in this company: $23.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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Reader Comments (Page 1 of 1)
7-15-2009 @ 5:26AM
al coholic said...
A moderate risk? This stock has a history of pinging the stratosphere and then abruptly dropping like a lead balloon. The company soars and crashes like a rollar coaster out of control as huge contracts are either signed or cancelled. Over the years Fluor's stock price has suffered huge volatility.
Another interesting thing about Fluor is how they treat their help. Engineers, no matter how competent are only employed for as long as their pay can be assigned to a specific project. If the project is cancelled or postponed as often happens in this type of construction, all the people who cannot be reassigned immediately are let go.
It's like a huge game of musical chairs.