Stock Pick Video #8 - Chicago Bridge & Iron Company N.V. (NYSE: CBI) - YouTube

Welcome to Baton,

where people like you come to us whenever they realize their current

investment approach just isn't working.

We give you an easy to use system that has

beaten the S&P 500 by three hundred percent since 2003,

takes just 30 seconds a month to use, and most importantly will help you achieve

your financial dreams. Hi, I'm Jim Pearce

with Baton Investing and today is February 19th, 2015.

Now, earlier this month we shared with you the name of a stock

that earned the second-highest rating according to Joel Greenblatt's

Earnings/Yield Investor methodology developed by John Reese of Validea.

That company, King Digital Entertainment,

was priced at $13.47

the day we recommended it two weeks ago. And yesterday it closed at

$16.15, a gain of 20% in just 15 days.

So, today, I'm going to share with you the stock that earns the highest rating according to

Greenblatt's system,

Chicago Bridge & Iron, which somewhat surprisingly

is not based in Chicago and does not make bridges.

Instead, CBI is headquartered in the Netherlands and provides

engineering and construction services to the oil industry. You may be thinking

with oil prices plummeting recently, why in the world

would we be recommending a stock whose fortunes are so closely tied to oil revenue.

Well, what tends to happen during a sell-off like this, is that alot of good stocks get punished

just as much as the bad stocks.

So we believe CBI has been undersold, and now represents a strong buying opportunity,

and here's why.

Again, we're using the same methodology that was used a couple of weeks ago.

Joel Greenblatt's Earnings Yield Investor. So Greenblatt was a hedge fund manager,

who only looked at two metrics, and only two, and yet was extremely successful in the stock market.

The first was the earnings yield,

which is the earnings before interest and taxes, divided into that company's enterprise value

In this case, CBI's earnings yield is 15.06%,

which ranks it 34th

out of the 6,000 stocks we evaluate. In addition,

Greenblatt also measured something called the return on total capital,

which is the earnings before interest and taxes divided into

the tangible capital employed of the company. Now in this case,

it's a staggering 1086%,

which ranks it first. Then what Greenblatt did is he added these two numbers together. In this case,

34 plus 1 is 35.

And he compared that to combined rankings of all other 6000 stocks.

Now in this case, that combined score of 35

actually ranks CBI 1st.

That's the lower score combined of these two, and that's again out of the 6000 he evaluates.

So, right now, Chicago Bridge & Iron trades between 41 and 42 dollars a share

We think it's a good buy up to $45. If oil prices do stabilize,

and start moving up later this year, this is a stock that could really take off.

Now, Chicago Bridge & Iron is one of only

ten holdings in our current Baton Portfolio.

Every month, or guru-based algorithm

identifies the ten highest-scoring stocks according that algorithm,

and those are the ones that we buy for the next four weeks,

If you want to know more about how the Baton System works,

just visit BatonInvesting.com and click on 'How it Works'.

There's also a simple three-question assessment you can take that will help you determine if Baton is right for you.

We can only help about half the people that come to us,

but maybe you're one of them.

So go to BatonInvesting.com now, and I'll see you again soon with another free stock pick. Thank you