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Started By
Message
CB&I Buyer's Remorse Lulz
Posted on 8/25/16 at 11:12 am
Posted on 8/25/16 at 11:12 am
Saw it on the Daily Report and wondered what the OT's take was:
LINK
Just throwing money away and enjoying that golden parachute I reckon.
LINK
quote:
Cohen’s letter states that after CB&I’s acquisition of Shaw, the company worked on two nuclear projects for over three years without ever being paid for its work. During this time, CB&I continued to tell its shareholders that eventually it would receive a payout for all the money owed in arrears.
Just throwing money away and enjoying that golden parachute I reckon.
11
Posted on 8/25/16 at 11:18 am to Giantkiller
I was convinced that Shaw would eventually implode then CBI bought them. I'm convinced you don't have to make money or be efficient if you are big enough.
Posted on 8/25/16 at 11:18 am to Giantkiller
quote:
“Furthermore, CBI’s total shareholder returns under a decade of leadership with its President and Chief Executive Officer, Mr. Phillip K. Asherman, have been an abysmal 17%,” Cohen writes. “While the S&P 500 has returned over 116% during the period—a staggering difference of over 99%.”
This sounds less than ideal. I remember reading comments here when the deal was announced that CB&I was getting fleeced - I think the crux was that so much of the value of Shaw was in projects that had yet to begin (and may never have begun).
quote:
I'm convinced you don't have to make money or be efficient if you are big enough.
"They have this nice building*, what could go wrong?"
*that was actually built by another large failed BR corporation.
This post was edited on 8/25/16 at 11:21 am
Posted on 8/25/16 at 1:12 pm to GaryMyMan
Shaw was pretty much like a ponzi scheme. They would include in their revenue contracts that were signed but the work may have never materialized. The company was a big ole steaming pile of shite wrapped in gold tin foil and CB&I fell for it. They made money by making people believe how great they were through flashy press releases.
Brown and Root will be just the same or worse because they are not publicly traded. As soon as they can rip someone off like they did CB&I they will fire all of their employees to inflate their balance sheets then jump ship leaving the buyer with their dong in their hands. An unscrupulous bunch to say the least.
Brown and Root will be just the same or worse because they are not publicly traded. As soon as they can rip someone off like they did CB&I they will fire all of their employees to inflate their balance sheets then jump ship leaving the buyer with their dong in their hands. An unscrupulous bunch to say the least.
Posted on 8/25/16 at 1:16 pm to Jim Smith
I've pretty much accepted that I must be a moron because I work my arse off and cant get anywhere. Yet deals like this get done every day and people get rich off of image or "ideas".
Posted on 8/25/16 at 1:20 pm to Jim Smith
quote:
Brown and Root
They are going hard after industrial heavy construction and turnaround work in this region.
In addition to building that bad arse pipe fab shop (Epic Piping) they are buying other companies and "stealing" higher level employees from their competitors.
Posted on 8/25/16 at 1:22 pm to notiger1997
Yea Brown and Root seems less smoke and mirrors than Shaw was for sure.
Posted on 8/25/16 at 1:24 pm to notiger1997
They have all the construction on the Cameron LNG Liquefaction plant being built right now in Hackberry, and have the maintenance contract at Cheniere. That's bound to be worth a good bit of money.
They also have that huge nuclear fab shop out on Lincoln Rd in south Lake Charles.
They also have that huge nuclear fab shop out on Lincoln Rd in south Lake Charles.
Posted on 8/25/16 at 1:31 pm to notiger1997
quote:
They are going hard after industrial heavy construction and turnaround work in this region.
In addition to building that bad arse pipe fab shop (Epic Piping) they are buying other companies and "stealing" higher level employees from their competitors.
Yeah, but what petrochemical company wants to do business with a company that will not have the same senior leadership in 5 years because the company is sold? The petrochem business is all about trust and reliability. Knowing that Jim and his minions are going to sell Brown and Root the first chance they get would be enough for me as an owner to not hire them.
Posted on 8/25/16 at 1:31 pm to rballa19
quote:
They also have that huge nuclear fab shop out on Lincoln Rd in south Lake Charles.
Yeah, with not really any nuclear work considering they sold Westinghouse.
Posted on 8/25/16 at 1:34 pm to notiger1997
quote:
Brown and Root
quote:
(Epic Piping)
quote:
They are going hard
Are you Carl Hungus?
Posted on 8/25/16 at 1:34 pm to Giantkiller
Sounds like whatever firm CB&I hired to perform the due diligence struck out big time.
Posted on 8/25/16 at 1:53 pm to Giantkiller
As a former Shaw employee, I can tell you that their corporate level management was a giant pile of incompetence and nepotism. They made money in spite of themselves.
Posted on 8/25/16 at 2:02 pm to Jim Smith
quote:
The petrochem business is all about trust and reliability
Agree. I'm in the industry and some of the people they've hired for upper mgmt are VERY good at building relationships though.
Jim will pay his way into places too if need be.
This post was edited on 8/25/16 at 2:13 pm
Posted on 8/25/16 at 2:05 pm to upgrayedd
quote:
As a former Shaw employee, I can tell you that their corporate level management was a giant pile of incompetence and nepotism. They made money in spite of themselves.
This. It was amazing to me that they had people with the title of COO of different divisions never having had operational experience AT ALL. The environmental group had a bunch of half rate lawyers running the show who wouldn't know how to operate a Lucky Dog stand. They made money through fancy marketing and making people believe they were who they weren't. Brown and Root will be the same.
Posted on 8/25/16 at 2:17 pm to Giantkiller
Anytime a company grows as fast as Shaw did, I think it is natural to have some questions about it. This is especially true when it's growth is more from buying other companies than actual organic growth.
Posted on 8/25/16 at 2:19 pm to LSUFanHouston
Didnt Bernhard Capital just raise like 700mm in a private equity fund?
Posted on 8/25/16 at 2:34 pm to notiger1997
quote:
Agree. I'm in the industry and some of the people they've hired for upper mgmt are VERY good at building relationships though.
Jim will pay his way into places too if need be.
Yeah, I know. That's what he's doing. Promising people astronomical money when they sell.
Posted on 8/25/16 at 2:39 pm to rballa19
All of that hackberry construction is ungodly expensive
Posted on 8/25/16 at 2:47 pm to rballa19
quote:
They have all the construction on the Cameron LNG Liquefaction plant being built right now in Hackberry,
I'm here
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