Fluor (FLR) and Perini (PCR) are in the same sector - infrastructure. That's about all they have in common. I have owned both at one time or the other, but clearly owning Perini (PCR) was a mistake. My thesis with infrastucture is to focus on the customer base - oil rich Arabs, trade rich Chinese, and essentially bankrupt (federal) US government with unending pocketbook (read: your taxes) who runs deficits to their hearts content. That was my error with Perini - unfortunately their customer base is heavily focused on non federal government Americans (although they are trying to change that) i.e. local governments, US customers who need credit lines - casinos for example [Jan 17: Perini Shows Collateral Damage of Tightening Credit + Slowing Economy]Construction company Perini Corp (PCR) said Deutsche Bank on Wednesday delivered a notice of loan default to the ...

Since I don't want to make the blog a place of constant sour news I'm always on the look out for slivers of good news.... we've been talking for a long time about the weakness in discretionary spending and just hit recently on the troubles of those (normal folk) who buy normal boats for normal fun [Jun 30: Listen to the Companies, Not the Government Reports - Brunswick Corp (BC) and Smithfield Foods (SFD)] However, there is always a bull market somewhere! Such as the nuevo rich [Jun 27: Global Millionaires - the Shift from West to East] and the booming market for super yachts. Our global gilded age continues - the gap between rich and middle class will widen. (poor - non starter unfortunately - falling farther and farther behind). I look forward from writing this blog from my super yacht ...

Lehman Brothers (LEH:NYSE) is one of the nation’s major investment banks. Lehman was founded in 1850 and has a rich history on Wall Street. However, Lehman’s stock price has been taking a beating this year as they have been painted with the same brush as Bear Stearns. There are rumors floating around Wall Street nearly every day about how Lehman is rapidly running out of liquidity and Lehman’s need to go to the Federal Reserve’s discount borrowing window on a regular basis.

All investment banks, including Lehman, are built on two items - liquidity and trust. When either of these items is lost, investment banks cease to exist and the best that be hoped for is similar to what happened to Bear Stearns-an arranged takeover by a stronger firm. Lehman’s efforts to raise fresh capital have caused the markets to fear that Lehman is going down the same path Bear Stearns

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