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Non-Tech : Foster Wheeler (FWC) beaten down but why -- Ignore unavailable to you. Want to Upgrade?

To: Evan who wrote (5)	8/10/1998 6:51:00 PM
From: Paul Getman	Read Replies (1) \| Respond to of 24

My source for FWC's book value is Value Line, which publishes several updates each year on FWC (and the other companies it follows). Although Value Line wasn't recommending the stock at the time, in its last report it did say that FWC, over time, offered exceptional value--and that was when the stock was $27. FWC's press releases can be found on the company's web site, fwc.com; look for the press release titled: FOSTER WHEELER CORPORATION SAYS 2ND QUARTER EARNINGS ARE EXPECTED TO BE IN LINE WITH STREET EXPECTATIONS I appreciate the comments about the very poor industry conditions facing the E&C companies right now, particularly with Asian deep in the hole and oil prices at very low levels. But that doesn't explain (to my satisfaction) why FWC has suffered so much relative to Fluor, which also has a huge exposure to Asian and to the energy market. Paul

To: Evan who wrote (5)	8/11/1998 2:32:00 AM
From: wolfgangl	Read Replies (1) \| Respond to 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