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I saw the top execs were dismissed on Friday and that CBI had to agree to pay its Controller $1.8 million to stay on through the reporting season. That is not a good sign, but hopefully the $1.8 million will buy more than 3 months of the Controller's services. I don't like to see big bucks thrown around like that, but it seems that the Controller holds the leverage in this situation.

There are clearly some accounting problems. It appears that the execs had a hand in things and it will obviously be some time before the truth about everything is known (if ever). However, the reasons that I invested in CBI over the past few months (and will probably invest more on this big dip) are: (1) Economic trends that play to CBI's strengths (need for LNG facilities and other infrastructure); (2) relatively high barriers to entry in CBI's industry; and (3) CBI's backlog of projects.

If the departed execs were overstating the backlog of projects, then that is probably a deal-breaker with me. If the backlog is there and CBI still has the capability to deliver them, then I think my investment thesis was sound and CBI will ride out this storm.

Any thoughts Twitty? Anyone?
Bus Driver
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