This stock has always done well, and has dependable movement, both up and down. I predicted the current drop to 60, but it has dropped much more. The more it drops the more I like it. I could see it working back to 77 in three months but I will say conservatively 70. The current drop is based on two factors - 1) it is a holding tank for funds when people pull out of the market, rather than hold cash a number of investors buy FWLT. 2) Pat of the reason FWLT is down is that it's tied in some ways to the oil industry, and oil prices have been up. That is very unrealistic because the contracts FWLT has been awarded were from before the sharp upswing in price, and there is almost no cance of them losing the contracts to cancellation. Recently their CEO announced retirement, and that may play into FWLT's downslip. Because this company performs lage international construction projects, it is possible that the election could affect them, but I have not substantiated this yet. If so, I do hold some caution in case the Obama administration will not preserve the profitable climate they currently enjoy. Still look at this stock's history, it's still business as usual and they've been around as far back as the 80's.
$45.66 (08/18/08)
