Again, we can paint an "End of Day's" scenario for any company, even McDonald's (MCD), even Walmart (WMT). But each day that passes certain countries become richer, and certain poorer. A company like Foster Wheeler (and most of the infrastructure names I have) are tied to countries getting richer (through trade or petrol). Short of a global trade collapse combined with crude oil retrenching to $25, the secular growth is not going to be ending anytime soon. Can backlog growth slow? Surely - 2 years worth of backlog is enormous; the law of large numbers eventually kicks in. But these are not 45 PE stocks, Foster Wheeler trades at a similar multiple to "safety stock" Procter & Gamble (PG) with twice the growth rate.
Does this mean the stock cannot crater 30% from here? Nope, it sure could. But it would be based on outright panic and not understanding the story. Generally when stocks falter in a market malaise people want to "find a reason", when the reason is "market malaise". These seems to be happening in many names I hold. Separating stocks going down for general market reasons versus company specific is the trick of it all. Those who choose correctly will benefit over the long run.
I cannot find many other sectors where I have a book of business 24 months out spoken for. combined with that business growing 20%+ annum. If you know any, please let me know - I'd like to go investigate the company for inclusion to the fund.
As an aside, my first purchase of this stock was on day 1 of the fund around $100, it promptly fell to the mid $80s as the market tanked in mid August. I heard the same reasons I hear today. 2 months later it was $150. By layering in and out of this position (adding at points of weakness, culling during the runs) we still have a +$5000 gain in this name, despite some (in fact many) purchase points higher than the current price of $130. It continues to be one of my favorites, and I don't see that changing for quite a long time. Whether its $100 or $130 or $160 or $190. The story is the same; only the stock price fluctuates. Same goes for most stocks in this group.
Below is summary of the video
What should Homegamers do with a stock that seems to react to every tick of the market (especially oil prices)? That’s what is happening to Foster Wheeler [FWLT 129.94
1.36 (+1.06%) 
], one of Cramer’s long-time favorites that got battered down 50 points “in a heartbeat” even though nothing fundamental within the company seems to have changed.Foster Wheeler CEO Raymond Milchovich reassured Cramer on Wednesday’s Mad Money that FWLT has seen “nothing but good news” since the last time he was on the show in mid-November.
While Foster services the oil industry, it is truly an infrastructure company with exposure to chemical, pharmaceutical and other energy businesses as well. For investors to trade the stock down along with oil is ridiculous, according to Michovich. “The daily spot price of oil has absolutely nothing to do” with the projects Foster works on, which are multiyear contracts that are analyzed by supply and demand functions over long periods of time – not by whether oil closes at $90 or $100 on any given day.
Listen to Milchovich, Cramer said, not the skeptics. Foster Wheeler is “money in the bank,” even if the market doesn’t treat it that way.
Long Foster Wheeler in fund and in personal account
