New position in Perini (PCR)

Following the global infrastructure them, I have added a new position in Perini. The stock has been destroyed of late, down from mid 70s in late July to mid 40s this morning. This despite a wonderful earnings report yesterday (in which the stock rallied 10%+). This is a very weak stock and I fully expect a test of the 200 day moving average which would be approximately $43, but with how far its fallen I have begun a sizable position.

As for yesterday's earnings:
Earnings were $1.01, up from $0.16 in the year ago period. Analysts were expecting $0.61
Revenue increased 62% year over year to $1.15 Bil from $712.5 Mil in the year ago period.

The company raised its guidance for 2007 from $2.40 - $2.60 to $2.80 - $3.00, and revenue from $4.0 - $4.2 Bil to $4.1 - $4.3 Bil.

It looks like the company does a good amount of work in Iraq, and there is some fear business could slow next year if business in Iraq slows.

At the low end of its guidance, $2.80 when the stock is around $50 it trades at a forward PE of 18, putting it on par with Foster Wheeler for the lowest valuations in the sector.

I added 400 shares today.

Long PCR