Buy The World's Largest Engineering Company - Fluor
Wednesday, January 27, 2010 at 04:01PM 
Fluor Corporation (Flr), through its subsidiaries, provides engineering, procurement, construction management, and project management services worldwide. The company is at the right point at the right time since global infrastructure spending is about to dramatically increase coming out of a recession.
The Bullish Case for Fluor
Six hundred billion dollars of stimulus spending in China on infrastructure. Billions in infrastructure spending in the United States. Plenty of potential future contracts to rebuild Haiti.
The Middle East, Africa, and Eastern Europe will pledge billions to the construction of infrastructure projects to energize growth in their developing regions. Finally, Brazil will lead resurgence in capital spending across the board in Latin America in preparation for the 2016 Olympic Games.
FLR already has over $28 billion in future project backlogs currently on its books. The company has a strong balance sheet with a solid Return On Investment, strong profit margins, and little debt. With effective costs cuts to be implemented this year these numbers should only continue to improve.
So, in summary, Fluor (FLR) has a strong balance sheet, large growth prospects overseas, and an extensive contract backlog. If you are an investor, what's not to like.
Great balance sheet, huge order backlog, 1% dividend, great future prospects in global construction spending all argue for the purchase of the world's largest engineering company. We can see the company over $60 per share in a year.
Risk
The risk to the shares is a prolonged global recession that will delay future orders but the current huge order backlog would cushion that blow. A dramatic decline in the price of oil or a strong dollar would also hurt the share price.
This stock should be a big winner coming out of the global recession and oil prices should remain high due to increasing demand. eWorldvu is buying 300 shares at the market open on Thursday January 28th for the Model Growth Portfolio.
Disclosure: (As usual do your own due diligence prior to investing). eWorldvu members currently hold the stock of Fluor.
Jim Smith
300 shares bought at 47.75 S and P 1095
2016 olympic games, balance sheet, construction, engineering, fluor, haiti, stock in Investment 
Reader Comments (1)
I am buying FLR at this price, 5,000 shares today and looking forward to the ride up on this great stock. Jim Cramer's latest action alerts are also showing him adding to his position in this stock right now. Earnings are coming Feb. 25, get in now before the news.