Guru Arnold Van Den Berg (Trades, Portfolio) began his investment career shortly after receiving his securities license in 1968. From there he began to work for John Hancock Insurance and then Capital Securities. Van Den Berg worked for the next six years while seeing some of the worst declines on Wall Street since the Great Depression. He turned adversity into his advantage and he began to study Benjamin Graham's mental models for investing. In 1974, Van Den Berg founded Van Den Berg Management, which is now known as Century Management.
In the fourth quarter of 2015, Van Den Berg reduced his holdings in Chicago Bridge & Iron Co. (CBI, Financial).
Chicago Bridge & Iron primarily specializes in projects for oil and gas companies. Chicago Bridge & Iron also provides engineering, procurement, commissioning, maintenance and environmental construction services to their clients that are located across the world. Today, after more than 125 years of experience, Chicago Bridge & Iron is the most complete energy infrastructure focused company in the world.
Chicago Bridge & Iron has a market cap of $3.58 billion, an enterprise value of $5.84 billion, a P/B ratio of 1.70 and a dividend yield of 0.82.
Below is a Peter Lynch chart for Chicago Bridge & Iron.
Chicago Bridge & Iron has afew warning signs according to GuruFocus. The company has a cash to debt ratio of 0.17, ranking them lower than 77% of the 959 companies in the global engineering and construction industry. The operating margin is also a concern at -0.65%, ranking them lower than 83% of the companies in the industry.
Chicago Bridge & Iron's stock price has been dropping over the past two years. In March 2014 the company was trading at over $84 per share, and since then the holding has dropped at an average rate of 36% over the course of the previous two years.
The company has been around for more than 125 years, and it is trading below its intrinsic value. Regardless of the fact that Van Den Berg reduced his holding in Chicago Bridge & Iron, I believe this stock is a good opportunity for investors.
Cheers to your investment success.
Disclaimer: author does not currently own any shares of this stock.
