Foster Wheeler (FWC) beaten down but why

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Non-Tech Foster Wheeler (FWC) beaten down but why

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To: Evan who wrote (5)	8/11/1998 2:32:00 AM
From: wolfgangl	of 24

Evan and Paul, thanks for your posts. The only additional point that I can think of in order to explain current low valuation is institutional percentage held, which is 82% for FWC. This is very high. I observe similar constellation with other tanking issues like Brunswick and Parker Hannifin. Both have reasonable fundamentals, high institutional percentage held but are not in the oil service sector. Are institutions generally discharging stocks? Wolfgang

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To: wolfgangl who wrote (8)	8/11/1998 9:23:00 PM
From: Evan	of 24

Wolfgang. It could be some institutional investors repositioned themselves and caused the drop in price. It may have created an undervalued stock in a poor market sector.If the overall market declines then this sector will also decline.

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To: Evan who wrote (9)	9/15/1998 11:16:00 AM
From: Evan	of 24

May be time for a wake up call for FWC.The engineering and construction group have been dogs for two years and FWC was beaten down the most in the major players, with due cause.A turn around seems to be imminent and several insiders have bought in the past year at twice the current price.

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To: Evan who wrote (7)	3/9/1999 9:16:00 PM
From: JR2	of 24

< No fainting please > This thread does indeed exist. This stock is tooooooooooooo cheap. If Asia is bouncing back then so should this "oldie but goodie" ! Anyone know what the Book is ?

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To: JR2 who wrote (11)	3/10/1999 10:04:00 AM
From: Loretta Fern	of 24

Just began looking into FWC. According to Value Line the 1999 book value is $17.30. Another factor to consider in its low stock price is that it is a small cap stock. As this sector has done poorly there is probably a disproportonate decline in the stocks price relative to large cap issues like FLR. With a dividend yield above 6% and good 3-5 year price appreciation potential, Value Line has FWC ranked 6th best in regards to 3 to 5 year price appreciation potential. This potential is dependent on Asian economies rebounding, oil prices rising, and more market interest in value and small cap issues. If one wants to buy and wait, some money could be made on the dividend and selling covered calls until the above mentioned factors materialize. IMO, downside risk from here should be limited, though that appeared to be true when the stock price was around $20.

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To: Loretta Fern who wrote (12)	3/10/1999 11:13:00 AM
From: Evan	of 24

Management don't have the courage to do what it takes. They keep paying the dividend even when losing money.The market leader in this sector is Fluor,similar problems.The E&C market is depleted.Jacobs (JEC)the only company that has done well on stock price. All the profits in this sector, as percent of gross sales stink.

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To: Loretta Fern who wrote (12)	3/11/1999 9:25:00 PM
From: JR2	of 24

< Thanks Loretta > I don't think this stock is a small-cap....maybe more like a mid-cap. I'm starting to get long this one...but not because of the div.... I understand that at least one or maybe 2 International Companies...would find these guys a great FIT...and would grab them for 1 1/2 times book. Hint : Boilers ---- Turbins ( How do you spell "turbins" )

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To: JR2 who wrote (14)	3/12/1999 1:25:00 AM
From: Loretta Fern	of 24

Your very welcome. May be a trivial point but with 41 million shares outstanding and a share price of 12$ market cap is under 500 million. I think mid-caps are in the 1-5 billion dollar range. I will be speaking soon to one of the construction managers for FWC and will post any relevant thoughts he has on the company.

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To: Loretta Fern who wrote (15)	3/12/1999 12:15:00 PM
From: Michael Bakunin	of 24

Weighted average market cap of the Russell 2000 index is under a billion; FWC is solidly in the size range of that index.

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To: Michael Bakunin who wrote (16)	3/12/1999 6:22:00 PM
From: JR2	of 24

Not when the stock trades where it has historically....25 plus. When you see it near 20 this summer, it won't matter. Hint : Turbine / Boiler I went back to school today.

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