Should I invest in companies that are rebuilding Iraq?

  • News
  • Thread starter schwarzchildradius
  • Start date
In summary, the conversation discusses whether investing in companies contracted by the Pentagon for reconstruction work in Iraq is a wise decision, given potential concerns about the companies involved and their past scandals. It is noted that while these companies initially saw a rise in stock prices, it is likely that the current stock prices already reflect the contracts and may not be a good investment. The conversation also touches on the risks of investing and the potential for fraud or scandals within these companies.
  • #1
schwarzchildradius
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.
 
Physics news on Phys.org
  • #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.
 
  • #3
Originally posted by damgo
...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.
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.
 
  • #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.
 
  • #5
Originally posted by russ_watters
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.


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.
 
  • #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.
 

1. Should I invest in companies that are rebuilding Iraq?

This is a personal decision that should be carefully considered. It's important to do your own research and weigh the potential risks and rewards before making any investment decisions.

2. What are the potential risks of investing in companies rebuilding Iraq?

The main risks include political instability, security concerns, and economic uncertainty. There may also be legal and regulatory challenges, as well as cultural and language barriers for foreign investors.

3. Are there any potential rewards for investing in companies rebuilding Iraq?

There is potential for high returns on investment, as the country is in need of significant rebuilding and development. There may also be opportunities for long-term partnerships and growth in a developing market.

4. How can I mitigate the risks of investing in companies rebuilding Iraq?

Some ways to mitigate risks include diversifying your investments, conducting thorough due diligence on companies, and staying informed about the political and economic climate of Iraq. It's also important to work with a reputable and experienced investment advisor.

5. Are there any specific industries or sectors in Iraq that are particularly promising for investment?

The energy, infrastructure, and technology sectors are expected to see significant growth in Iraq. Additionally, there may be opportunities in industries related to healthcare, education, and consumer goods as the country rebuilds and develops.

Back
Top