When I emphasized the need to own infrastructure stocks on October 23, 2007 (“Subprime” NOT the headline from Honeywell’s quarter - Part 2: Strength in Energy, Construction, and Infrastructure), I made a mistake. I apologize to my portfolio’s performance, and to my readers, for recommending Flour Corp. (FLR) and Foster Wheeler(FWLT). Not that Flour Corp. and Foster Wheeler (I bought FWLT on my own recommendation) aren’t great investments, it’s just that McDermott is a completely different beast all together. Foster Wheeler is still my number one Engineering and Construction (E&C) pick, make no mistake (Foster analysis in another piece soon). Wait, isn’t McDermott an E&C company you ask?

After much research, I believe McDermott is actually a Oil Service and E&C hybrid. I anoint McDermott as my number one oil service investment for the next five years rather than Schlumberger, Transocean (which I own), or any other companies in the Oil Service Holders (OIH) ETF...