So many schleps out there touting KBR right now. I've heard so many analysts talking up KBR, barrons, the journal etc....Once one parrot starts squawking something the rest start squawking along. But once cramer joins in the squawking you know the stock is doomed. Cramer is "MUSH" (defintion of MUSH refer to the movie"A Bronx Tale"). Once cramer recommends a stock it gets 'MUSHED" , kiboshed, whammied, cursed.....
How bout Thornburg Mortgage? He was going nuts recommending that one! Saying how great the CEO was, blah, blah, blah........about 4-6 weeks later it was in pennies.
Looks like Cramer 'borrowed' (read: stole) this idea from Gendell: http://dealbreaker.com/images/thumbs/Tontine Investor Letter (1-Oct-08).pdf (last page) Careful: Tontine might still be long and is liquidating. Blood in the water = others might still be trading against his positions.
I should have listened to you guys. surfer and cramer on the same trade got to be a huge contrarian signal. I'm going to sell my KBR stake today, looks like I completly misunderstood how the infrastructure and defense business works. I see KBR has ' Reserve for estimated losses on uncompleted contracts' item on the balance sheet, they also have $2b in 'receivables' against $1b in cash, they will have to reserve as their customers cant pay anymore. KBR is a frigging bank! I almost bought KHD based on the same simplistic analysis, they got 'Progress billing above costs' in the liability side, if that keeps running it could wipe them out Who the hell knows how many of their contracts will blow up and what their true book value is
i dont want to be mean, but KBR is blood money hard to feel sorry for those who tried to profit from it in 2003, halburton seemed like a no-brainer, and had i taken it, i'd be set right now but i didnt want the blood from those coffins coming back on my hands <img src="http://www.bit-shift.net/content/binary/casket1.jpg"> <img src="http://thegoodparts.files.wordpress.com/2007/11/katherine-cathey-james-cathey-todd-heisler-1.jpg">
doddi, KBR is not failing. I just realized I have no idea how much they have in book value so I have to stick to my rules and get out. I dont have time to try to forecast what will happen to hundreds of contracts Chanos is shorting defense and infrastructure plays, I bet he believes lots of the 'receivables' will became confetti. meanwhile they have their costs running
the funny thing about cramer is every night on mad money its"booya your picks made me a lot of money". never a negitive caller. during this crash his aa port went down 40% but still the cramericans love him.
I meant in the context that when the redemptions happen the share price will take a beating regardless of how the business is doing.