Chicago Bridge & Iron Company N.V. (NYSE: CBI)
Chicago Bridge & Iron Company N.V. (CBI), an energy infrastructure company on Tuesday announced that they will be selling their nuclear construction business to Westinghouse. The transaction is expected to take place in the fourth quarter of 2015.
Chicago Bridge & Iron Company N.V. CEO Comments
“This transition is a positive development for all stakeholders in the current nuclear projects as it provides, through Westinghouse, a single focus of responsibility and accountability for the completion of the AP1000 units,” said Philip K. Asherman, CB&I’s President and Chief Executive Officer. “For CB&I shareholders, it provides clarity and increased predictability from our growing backlog of work in markets that are more strategic to our future growth.” PR Newswire
CBI Technical Analysis
CBI gapped up in price yesterday to $46.00, up from the prior day’s close of $38.96, which is an 18% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on August 19th, when it closed at $48.86. Taking a further look back on the chart, we can see the stock has been on an overall decline dating back to May 18th when it was trading at its 52 week high of $59.45. More recently, we can see a double top formation at the $44.75 price level. With the gap up in price it will be interesting to see if it can use the $44.75 price level as a support level moving forward. The stock is trading on 5 times the normal daily trading volume. The stock did reach pre market highs of $46.49 right before the open, but it gave back $0.49 at the open, or equivalent to only 1%. For trading purposes, my entry point would have been $46.10 looking for a move through $46.50. My stop loss would have been $45.90 fearing anything below that and the stock would start to fill in the gap up.
Chicago Bridge & Iron Company N.V. provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services worldwide. The companys Engineering, Construction and Maintenance segment offers engineering, procurement, and construction services for energy infrastructure facilities, as well as comprehensive and integrated maintenance services. Its projects include nuclear, fossil, and renewable electric generating plants for the power industry; and upstream and downstream process facilities for the oil and gas industry. The companys Fabrication Services segment is involved in the fabrication of piping systems, process, and nuclear modules; fabrication and erection of steel plate structures; and manufacturing and distribution of pipes and fittings for the oil and gas, petrochemicals, water and wastewater, mining, mineral processing, and power generation industries. Its Technology segment provides licensed process technologies; catalysts; and engineered products, including heat transfer and proprietary equipment, as well as engineering, procurement, and fabrication for various process technologies that are used in petrochemical facilities, oil refineries, and gas processing plants. This segment also provides process planning and project development services, and a comprehensive program of aftermarket support. The companys Environmental Solutions segment offers environmental services for government and private-sector customers, including remediation and restoration of contaminated sites, site preparation work, emergency response, and disaster recovery; and undertakes design-build infrastructure projects for federal, state, and local governments. Chicago Bridge & Iron Company N.V. was founded in 1889 and is headquartered in The Hague, the Netherlands. Yahoo Finance