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Should I invest in companies that are rebuilding Iraq?

  1. May 22, 2003 #1
    Would it be a wise decision to invest a substantial amount of money in companies that were anointed by the pentagon to fix Iraq's power supply, water supply, phone lines, and government infrastructure, as well as oil development and exploration?
    Seems at first like a slam dunk, until you look at the companies themselves- Harken and subsidiary (?) Bechtel, as well as Worldcom (!) a/k/a MCI a/k/a perpetrator of biggest fraud in history (whoa did I say that?)
    add to the list I'd love to hear the scoop on the rest of the contractors, and thanks.
     
  2. jcsd
  3. May 22, 2003 #2
    The Economist did a piece a while back on a 'reconstruction index,' and companies involved in reconstruction work had seen their stock go way up in the year prior to the Iraq war. But as the war is over and contracts have been handed out, the current stock price probably already reflects that -- I wouldn't guess they're a particularly good buy anymore.
     
  4. May 23, 2003 #3

    russ_watters

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    Staff: Mentor

    I would tend to agree. Generally with investing, if you are asking a question that a lot of people are interested in, the answer is already obsolete.
     
  5. May 23, 2003 #4
    Right, but the question is more to the point of analyzing the companies' merits severally, and more importantly evaluating the risk of another fraud or scandal even if the company is making a profit.
    Bechtel is one which I forgot to mention is the contractor for the infamous "big dig" in Boston with a cost overrun of 1.4x109 bucks.
    Halliburton, has a clean record... doesn't it? If anything they must have played with Enron.
     
  6. May 23, 2003 #5

    Unless there is volatility, then it can just be a bet like any other.

    The traders get the information first and execute deals first, and the layperson last. You will always be at a disadvantage.
     
  7. May 30, 2003 #6
    Unless your a mind reader, then you could beat them all at there own game.

    Had heard something about Haliburton, some time back, without reference, gossip is damaging, so.....but it isn't like I haven't worked in my life, and clearly know, like most people who have worked, stuff happens, sometimes not the best of stuff, but a good company will do the best it can to mediate such things.

    Have no money so have no investment advice, if I had the money, God willing, I wouldn't tell.
     
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