Cramer Says KBR (KBR) Could See a $55 Bid
More News related to KBR
- KBR Exposed Soldiers and Contractors With Toxic Burn Pits, According to Burke O'Neil LLC
- KBR Awarded Contract by Saudi Kayan Petrochemical Company for Operator Training Simulator
- KBR (KBR) Awarded FEED Contract by Chevron USA
- KBR Awarded FEED Contract by Chevron for Big Foot Topsides Project
- KBR to Participate at the Goldman Sachs 2009 Global Industrials Conference
More News related to Analyst Comments
- Goldman Sachs Added Cytec Industries (CYT) to their Conviction Sell List
- FBR Capital Recommends An IPO or Spin Off at Chesapeake Energy (CHK)
- Canaccord Adams Maintains a 'Buy' on Silver Wheaton (SLW); Raises Price Target
- Citi Boosts Target on McDonald's (MCD) to $64, Maintains Hold
- Canaccord Adams Reiterates a 'Buy' on Veeco Instruments (VECO); Raises PT & Estimates
On last night's Mad Money, Jim Cramer highlighted a stock he believes has been so "criminally undervalued" that he can hardly believe it: KBR Inc. (NYSE: KBR). Cramer said he's "never seen a company so cheap" in his life.
Cramer feels KBR's fundamentals are solid, but believes that the market isn't pricing the stock based on fundamentals. Instead, Cramer says traders are bringing down shares of KBR on fears that Obama will cut defense spending if he is elected, as well as hedge funds being forced to cash out their positions in order to cover redemptions.
With shares of KBR closing at $15.13 yesterday, Cramer points out that the company's market cap comes to only $2.5 billion, despite having about $15 billion in its backlog and about $9 per share in cash.
In April of 2009, Cramer notes that KBR will be eligible to put itself up for sale, making it an attractive target for many companies in the construction services industry. The President of Cramerica estimates that KBR could see a $55 bid, or, using more conservative estimates, a $33 bid, which would still mark a more than 100% gain from current levels.
Traders seem to be responding to the Cramer tout this morning: the stock just opened at $16.47, up nearly 10% from yesterday's close.
KBR, Inc. operates as an engineering, construction, and services company supporting energy, petrochemicals, government services, and civil infrastructure sectors worldwide.
Related Categories
Analyst CommentsInsiders' Blog
Stocks Mentioned
-0.84Related Entities
Comments
Conflicting advise
Jim Cramer is all over the map on his advise because he is paid to come forth with an opinion on every stock in the world and all things financial. This is impossible for anyone to do. Current financial events are occurring so fast that Jim cannot remember what he said three days ago much less two weeks ago resulting in confusion and ridicule from his T.V. viewing audience as his contradicting statements and opinions pile up.
Its your money
I have nothing.. nothing against Mr.C.. he might be a little mad for my investments but that’s just my thinkin’ this guy is a good “houzer” in uptrend markets but you’ll find’im not a safe bet on a downtrend let me tell’ya.. a lot is looking to cheap out there but you cant look brightly into a cloudy future with numbers from the past. And you’d never put your foot inna shoe if you knew there’s a small stone in there waiting for ya .) For your money - be safe and wait, don’t throw darts or looking to be the lucky one. Mr.C has a show that must go on, let him entertain you only and do your own good legwork innit.
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
KBR's recent purchase
turkey3 on Oct 11, 2008 07:52 PMI wonder if Cramer would still recommend KBR,now that it has purchased the Canadian company. KBR's stock price went down immediately following.