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[StocksonWallStreet]

Love this stock and this is why:

FWLT is currently priced at $19.75 making it very attractive. This company is coming off a 52-week high of $63.18 only last summer and tumbled like the rest of the market due to huge concerns. It has huge room to grow and these are the reasons why. FWLT is expected to decline in 2009 by 15% due to the downsize in volume however on the contrary in 2010 expectations have numbers increasing substantially driven by increases in capital expenditures, increases in customer spending levels as oil prices stabilize which will in turn lead major oil corporations to refocus on long-term projects.

Emerging markets will come to form as well with billions of dollars to offer and I see FWLT to target this sector and be a leading operator for the global sector. In February, FWLT signed the largest contract ever with Paradip refinery project in India. The contract included over four million E&C man hours, bringing FWLT’s total to around 16.2 million man hours back logged from the end of the first quarter of 2009. I expect this and additional contracts to begin to benefit results the E&C company in late 2009 and 2010. FWLT also recently changed its domicile to Switzerland from Bermuda, completing the redomestification of its holding company. The company believes the change of incorporation establishes a corporation that is more centrally located within its area of global operations in a country with a stable and well-developed tax regime. Currently, FWLT generates more than 60% of its bookings outside of Europe and the U.S. With Switzerland being neutral this will lead to many tax benefits. Overall, my buy recommendation for Foster Wheeler is based upon attractive valuations, long-term prospectives within the sector, and due to FWLT’s below market P/E they have a very attractive upside potential. Volume is above 100,000, which is the threshold in which I set. They have outstanding numbers with a 76.98% return on equity and 11.03% return on assets. Another plus is the company is not in debt and has half a billion in cash on hand top help expand their worldwide brand. Like we know, Cash is King. This company is the leader in its sector and recently been upgraded by many analysts yet results have yet to sink in.

[dulcevida71]

nice post.....let me do some DD and I'll post what i find

[teenwolf41]

FWLT used to be my longest tenure holding. I started to buy this at $42, then added at $35, $30 and $23. I held it all the way down to $12. Listening to their CEO I think two quarters ago say things in the field are "dry" made me cringe. They also didn't buy back a single share in the $12-$18 area during their share buy back (buy high?). I sold it back at $27 earlier this year. I always loved the balance sheet and the growth potential of Foster Wheeler, but I got burned by this name. Needs oil to go higher and oil is heading lower. Maybe I'll look at it again in the low 20s.

[StocksonWallStreet]

I purchased a large share of it at $19 and think it is easily going to $30 in 12 months. You have to factor in that almost everything got burned last year. Look at stocks like Top Ore Producers Vale falling from $42 to $8.

[StocksonWallStreet]

If you guys are interested in reading the rest of the Research Report check out: Foster Wheeler: A Stock You Can’t Miss Out On | Stocks on Wall Street

[teenwolf41]

Threw my drink on the ground today thanks to Ray Milchovich. Thanks for crushing the numbers and giving solid guidance after I sell.

[InvestedCentral.com]

FWLT is a $3.7 billion industrial company that provides construction and engineering services to the oil and gas, oil refining, chemical/petrochemical, pharmaceutical, environmental, power generation, and power plant operation and maintenance industries worldwide. After trailing its industrial counterparts recently on a relative basis, FWLT broke out above key resistance and its 50 day SMA - all on volume that was 40% higher than normal. If you look at the chart, you'll see a company that gapped up in August 2009 and moved back down to retest that gap support area in early March. While testing that support, FWLT printed a long-term positive divergence and that set the foundation for the recent surge to the upside. Because FWLT has just made a key breakout, it would appear to have a much better risk/reward opportunity relative to its peer group. A close back below $27.00 would be cause for concern, while we expect FWLT to eventually reach the $35.00 level, testing September 2009 and January 2010 highs.

[StocksonWallStreet]

Originally Posted by InvestedCentral.com FWLT is a $3.7 billion industrial company that provides construction and engineering services to the oil and gas, oil refining, chemical/petrochemical, pharmaceutical, environmental, power generation, and power plant operation and maintenance industries worldwide. After trailing its industrial counterparts recently on a relative basis, FWLT broke out above key resistance and its 50 day SMA - all on volume that was 40% higher than normal. If you look at the chart, you'll see a company that gapped up in August 2009 and moved back down to retest that gap support area in early March. While testing that support, FWLT printed a long-term positive divergence and that set the foundation for the recent surge to the upside. Because FWLT has just made a key breakout, it would appear to have a much better risk/reward opportunity relative to its peer group. A close back below $27.00 would be cause for concern, while we expect FWLT to eventually reach the $35.00 level, testing September 2009 and January 2010 highs.

Thanks for the analysis.