If my company wanted to buy Power Plant services I would look for a company that is trading over $1.90. Time to focus on the core business and hopefully rebuild a financial portfolio that companies would be willing to select us for Power Projects that will be needed. Will try to keep people for the recovery.
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Sure. Let's rebuild this company, one EPC project at a time. But first, here, just put up a letter of credit to cover this PCG. ...
What, are those stupid short sighted banks worried because you sold your tanks and pipes and technology cash cows? What is wrong with their lack of vision? Don't they see "A New Kind of Company"?
Are they bothered that you're paying employees to trawl the internet to squelch the dissident voices of your ungrateful drones in sector 7G?
Are they disgusted by spending on things like a new logo? New signage everywhere? Minute Maid Park? Stay on bonuses? HR consultants and cultural integration playdates? Billions too much paid for a sinking company?
CEO (DD) wanted CB&I because he wanted to enter the LNG market. It was a perfect storm of ‘CB&I being a ready made LNG player’ and ‘ CB&I lingering in the perfect level of financial uncertainty for a take over’.
However, in order to be a cup-o-noodles instant meal LNG player with the likes of KBR, Fluor, Tecnip; DD had to buy the entire buffet of unsavory delights. If all he wanted was the LNG market, then he could offset the potential losses with divestitures of the portfolio of CB&I assets (Tanks, Pipe Fab, Lumuus, Aptim, Power, real estate).
Unfortunately those loses were greater than they “anticipated”. Perhaps there is truth to that claim. Perhaps the hunger to be a key player, in the growing world wide LNG market, was worth pretending to underestimate the losses.
For those people working for McDermott: unless you work for Offshore or LNG, then your future lies outside of the glass walls of the new shiny tower on Eldridge, only because you are not part of the long term vision of McDermott. You have been sold a bag of goods and told to hold on, with hopes of selling your division as a whole.
It’s a lot easier to sell a car if it still has all 4 tires.
The stock price is inconsequential, because the men in the high castle will do another reserve split for better optics.
The best advice I’ve ever received: when executives are responding to a crisis; transparency, candor, and honesty are their enemies