Thomas Cloud, Jr.'s  Instablog

Thomas Cloud, Jr.
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I have been competing against thousands of other investors from all over the world during the last 6 years on Marketocracy. My model portfolio was recently (03/31/2009) named to the top 100 for its 5 year performance. I am aware of no other mutual fund that has performed better than the stocks I... More
My company:
Eleven Two Fund Managment, Inc.
My blog:
The Entrusted Steward
  • KBR - Better Than Your Average Stock...IMO 0 comments
    May 28, 2009 5:19 PM | about stocks: KBR

    KBR, Inc. operates as an engineering, construction, and services company supporting the energy, petrochemicals, government services, and industrial and civil infrastructure sectors worldwide. If you believe, like me, that oil is at least not going too much lower from where it is now then KBR stands to continue to profit. And continue really is the keyword.

    I mean, heck if you like me, you probably just assumed every business was suffering this year. Not so. KBR made more money in the first quarter of 2009 than they did in 2008! "KBR&n... me a job", you say.  

    Let's break KBR down a little bit and see how it stacks up.


    Not so good with the free cash flow generation and growth. However they do have efficient management of working capital and they also operate well under pressure by having a positive track record of beating EPS estimates. Their operating income to relative to market value, balance sheet valuation, and recent purchases from insiders looks strong.


    KBR just crossed above its 200 day moving average.

    Analyst Opinions

    Broadpoint AmTech analyst Will Gabrielski raised his profit estimate for KBR, upgraded the engineering and construction firm to "Buy" from "Neutral" and raised his price target to $21 from $13. KBR closed 5/28 at $18.33.

    Against the Competition

    The return on equity for KBR is 22.77% against the construction and engineering average of 10.81%. Additionally the P/E is 10.15 against the industry average of 13.4. I moved my clients into this stock when it was $14.63.

    Disclosure: Long KBR

    Stocks: KBR
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