logo
  Join        Login             Stock Quote

Shaw Group: Engineering Profits

 November 15, 2012 01:29 PM
 


By Vivian lewis, editor Global Investing

Could a tidal barrier system make sense for the New York harbor? This thought his led me to look at who got contracts for the major post-Katrina public works projects from the US Army Corps (which is authorized as part of the militarCould a tidal barrier system make sense for the New York harbor? This thought his led me to look at who got contracts for the major post-Katrina public works projects from the US Army Corps (which is authorized as part of the military to build levees, dikes and other flood control systems).

As it turns out, we already own it. We previously purchased Shaw Group (SHAW) as a 'backdoor' way to buy Chicago Bridge & Iron (CBI).

Shaw first came to my attention because it is building a US facility for disposing of surplus weapons-grade plutonium in cooperation with Areva of France, which we used to own. So when the bid from CB&I came along, I opted to buy Shaw.

Advertisement

I later learned that Shaw (out of Baton Rouge) helped provide basic supplies, water, new roofs and housing, plus electricity) after Katrina. Shaw then pumped out 50 billion gallons of water from New Orleans and ran shelters in Texas for disaster victims. Those are good references.

It then led the largest design-build civil works project ever awarded by the Army Corps of Engineers, the Inner Harbor Canal Surge Barrier for New Orleans.

Shaw provided project management, design, and construction for the IHNC which is 2 miles long and has 3 flood gates. The barrier is to keep the confluence of the Mississippi River and the Gulf Intercoastal Waterway from surging as they did in 2005; the job was completed by Oct. 2009.

Shaw also worked for the MTA and Metro North in The Bronx to rebuild Yankee Stadium stations on the subway and railway beating the schedule thanks to pre-fab construction in 2009.

Chicago Bridge & Iron is an ADR; despite its name, the company is not from Chicago, and it doesn't build bridges out of iron. global engineering and construction group is incorporated in the Netherlands.

It has announced a planned takeover of The Shaw Group for just over $3 billion subject to shareholder and regulatory approvals. We continue to recommend buying SHAW as a way to own the Chicago Bridge & Iron ADRs.

Learn more about this financial newsletter at Vivian Lewis' Global Investing.y to build levees, dikes and other flood control systems).
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageThe Coca-Cola Company (KO) Q1 Earnings Preview: Guidance About to Fizzle?

The Coca-Cola Company (NYSE:KO) plans to release its first quarter earnings results before the market opens read on...

article imageIntel Corporation (INTC) Q1 Earnings Preview: A Business in Transition

Intel Corporation (NASDAQ:INTC) plans to post its first quarter earnings results promptly after the market read on...

article imageFord Motor Company (F): A long Road to Deutsche Bank’s $19 Target

Ford Motor Company (NYSE:F) is going the right way on a one way street where most everybody else is driving read on...

article imageCitigroup Inc (C) Q1 Earnings Preview: Too Many Parts Heading South

Citigroup Inc (NYSE:C) will issue its first quarter results via press release at approximately 8 a.m. (ET) read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.