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FLUOR CORP (FLR) 44.32 green arrow $0.36 (0.82%) 04:26AM (15 mins delay)


Fluor: Well Positioned Despite Problematic U.S. Economy

Oct 04, 2009 - 4:12 AM EDT

Brian McMorris submits:

Fluor Engineering (FLR) has many positive attributes, FLR has a current P/E of 12 and an almost guaranteed profit for the next 12 months due to the contractual backlog that is inherent to engineering construction companies. Its Revenue / backlog is $23B (all numbers as of October 2, 2009) while its Market Cap is only $8.6B for a very low P/S ratio of 0.37. This while the ROE is 26.71%. Engineering construction is a high margin business with excellent forward visibility.

The long term outlook for engineering construction is very good globally with infrastructure and natural resource processing required in Emerging Markets and as a form of stimulus in developed markets. FLR was at 100 in June 2008 and trends very close to energy and materials stocks as those are the industries where it does most of its projects. The 5 year low was 28.60 on Nov 20 during the panic. I can't imagine prices getting back to that level again.


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Source: Seeking Alpha (Oct 04, 2009 - 4:12 AM EDT)



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