Chicago Bridge & Iron Company
Thesis
Chicago Bridge & Iron is positioned to benefit from the increasing global demand for natural gas, particularly in Asia, where LNG projects are expected to surge. The company has a strong market share in LNG storage and liquefaction, and its recent acquisitions have diversified its business model, allowing for a more stable cash flow. With a target price of $58.81, CBI is undervalued compared to its historical trading range and is expected to unlock significant shareholder value through potential acquisitions and share buybacks.
Did it work?
The stock price of Chicago Bridge & Iron has plummeted by 99.8%, which is a clear indication that the long thesis did not materialize. The anticipated benefits from LNG projects and the company's market position did not translate into positive performance, leading to a significant loss in shareholder value instead of the expected gains.
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