I want to highlight Foster Wheeler (FWLT) with this note, not so much because the stock is down this morning -- frankly, that's been happening a lot lately -- but because the company was awarded a refinery overhaul contract in Lithuania. The deal was for an undisclosed amount, but adds to Foster's $4.5 billion order backlog, which currently represents about two years' worth of business.
That said, the stock remains under heavy selling pressure. This is probably due in part to the fact that asbestos settlement talks once again have stalled in the Senate. Even so, Foster already trades at a discount to its peers, and I'm alerting you readers that I'd be picking away at 200 or 300 shares down here around $38.76 if I wasn't restricted from buying the stock.
Know this: The chart says this stock could fall to $36. I don't usually put a lot of faith in technical analysis, but it is worth being aware that this is probably another reason Foster has been selling off so hard recently.
This company's stock has a disturbing ability to decline on virtually no volume relative to its size. There are 67 million shares. On 300,000 shares trading, it falls 4 points. That's rather odd and, frankly, makes little sense.
It is important not to be shaken out by declines like this on good news. This is a $2.5 billion company with almost no debt and a $4.5 billion backlog, for heaven's sake. That's just nutty. It is true that the stock is still up 164% year-over-year, and that brings in endless profit- taking, but selling it now would just be dumb as wood. I want to buy, not sell.
Regards,
James J. Cramer
DISCLOSURE: At the time of publication, Cramer was long Foster Wheeler.
Send email to james.cramer@thestreet.com.