Stocks

More Downside Ahead For Fluor Corp.

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, operation, maintenance and asset integrity, and project management services worldwide.

Shares of engineering contractor Fluor (NYSE: FLR) slumped a whopping 30.2% in May, according to data provided by S&P Global Market Intelligence.

In a nutshell, Fluor is seeing a continuation of the execution problems that beset the company in 2018. By management’s admission, the company was overly aggressive in bidding for certain projects in recent years, putting it in a position where it needed perfect execution in order to be profitable. Unfortunately, not all the projects went according to plan and the company has faced charge after charge, particularly with its gas-fired power projects — an activity that Fluor is no longer bidding on.

Investors will have to wait and see while bracing themselves for the possibility of more charges ahead, particularly as new CEO Carlos Hernandez spoke on the earnings call about “some ongoing issues with our client,” which “hopefully we can resolve those on a commercial basis.”

Source

Fluor is not only down 30% in May, but down 50% since the beginning of the year.

And since the monthly candle just closed below the 2009 pivot low, the chart suggests price will continue to decline to the monthly demand at $13.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Related posts

Caterpillar Back In Its Cocoon

rollandthomas

Is The SPDR S&P Retail ETF, XRT About To Get “X” Out???

rollandthomas

Got an Innovative Food Idea? The European Union Wants to Know !

Mr. Crypto Lemon

Get involved!

Comments

No comments yet
Skip to toolbar