The Babcock & Wilcox Company operates as a specialty constructor
of nuclear components for customers in the power and other steam-using
industries. The company’s Power Generation segment designs, engineers,
manufactures, supplies, constructs, and services utility and industrial
power generation systems, including boilers used to generate steam in
electric power plants, pulp and paper making, chemical and process
applications, and other industrial uses. Its Nuclear Operations segment
manufactures naval nuclear reactors for the U.S. Department of
Energy/National Nuclear Security Administration’s Naval Nuclear
Propulsion Program, which in turn supplies them to the U.S. Navy for use
in submarines and aircraft carriers. The company’s Technical Services
segment provides services to the U.S. Government comprising uranium
processing, environmental site restoration services, and management and
operating services for various U.S. Government-owned facilities. Its
Nuclear Energy segment fabricates pressure vessels, reactors, steam
generators, heat exchangers, and other auxiliary equipment.
Take a look at the 1-year chart of Babcock (NYSE: BWC) with the added notations:
BWC has been trading mostly sideways since August of last year. In
addition, the stock has found support at $27.50 (red) whenever that
level has been approached. Now that the stock appears to be have broken
that support, lower prices should follow.
The Tale of the Tape: BWC broke a key level of
support at $27.50. A trader could enter a short position on any rallies
up to or near $27.50 with a stop placed above the level. If the stock
were to break back above the $27.50 level, a long position could be
entered instead.
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We connected with Martin Armstrong
today. The movie made about him, The Forecaster, is quickly becoming a
European blockbuster. He’s hoping that it will become available in the
States before too long. With the Swiss ending the Franc-Euro peg and the
coming sovereign debt collapse, it’s all starting to move very quickly.
The potential for the world to become a very unpleasant place is
increasing by the day. The politicians seem to be more concerned about
the next election than the long term well-being of the country. Start
planning your defensive strategy now. Forget that pension you were
promised, it’s probably not going to happen. There’s lots more in this
timely interview.
Click Here to Listen to the Audio
