Shaw Group (SHAW) Showing Bullish Technicals With Support At $37.49

Shaw Group Inc. (NYSE: SHAW) closed Thursday's trading session at $38.77. In the past year, the stock has hit a 52-week low of $27.61 and 52-week high of $41.62. Shaw Group stock has been showing support around $37.49 and resistance in the $40.07 range. Technical indicators for the stock are Bullish and S&P gives SHAW a neutral 3 STARS (out of 5) hold rating. For a hedged play on this stock, look at the Jun '11 $38.00 covered call for a net debit in the $36.52 area. That is also the break-even stock price for this trade. This covered call has a duration of 50 days, provides 5.80% downside protection and an assigned return rate of 4.05% for an annualized return rate of 29.58% (for comparison purposes only). A lower-cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the SHAW Jan '12 $20.00 call and selling the Jun '11 $38.00 call for a total debit of $16.95. The trade has a lifespan of 50 days and would provide 4.69% downside protection and an assigned return rate of 6.19% for an annualized return rate of 45% (for comparison purposes only). Shaw Group does not pay dividends at this time.

Shaw's Mumbai Office Completes GAIL Furnace Project with Excellent ...

Baton Rouge, Louisiana, United States, Wednesday, May 18, 2011 — (Business Wire India)

The Shaw Group Inc. (NYSE: SHAW) today announced its Mumbai, India, office has completed services work for the addition of a Shaw proprietary Ultra Selective Cracking (USC®) furnace for GAIL (India) Limited in Pata, Uttar Pradesh, India. Shaw provided engineering, procurement and construction management (EPCM) services for the furnace project and worked approximately one million workhours without a lost time incident.

“With the excellent safety performance and successful commissioning of this furnace, Shaw has achieved yet another major milestone of executing engineering, procurement and construction management projects in India for a major client,” said Lou Pucher, president of Shaw’s Energy & Chemicals Group.

“The success of this project stems from the teamwork exhibited by GAIL and Shaw, with other contractors, all focused on meeting the project objectives,” said G.C. Dwivedi, executive director and officer-in-chart, GAIL, Pata. “We are proud to be associated with this successful project.”

Shaw recently assumed full ownership and control of the operations of its Mumbai office, which previously operated as a 50/50 joint venture with an Indian partner.

Shaw’s experience in Pata dates back to the 1990s, when Shaw provided technology and basic engineering for GAIL’s first 400,000 tons per annum ethylene plant at the site. In December 2010, Shaw announced it will provide proprietary technology and basic engineering for a new 450,000 tons per annum ethylene plant for GAIL at the same site. Shaw also will provide support during detailed engineering, procurement and construction, and commissioning and startup of the plant.

The Shaw Group Inc. (NYSE: SHAW) is a leading global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2010 annual revenues of $7 billion, Shaw has approximately 27,000 employees around the world and is a power sector industry leader according to Engineering News-Record’s list of Top 500 Design Firms. For more information, please visit Shaw’s website at www.shawgrp.com.

This press release contains forward-looking statements and information about our current and future prospects and our operations and financial results, which are based on currently available information. The forward looking statements include assumptions about our operations, such as cost controls and market conditions, that may not be realized. Actual future results and financial performance could vary significantly from those anticipated in such statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, the occurrence of certain events or otherwise.

The Shaw Group, Inc., Labor Productivity Benchmarks and International Gap Analysis

The Almanac of American Employers 2008, Market Research, Statistics and Trends Pertaining to the Leading Corporate Employers in America

The Almanac of American Employers 2009 (E-Book), Market Research, Statistics and Trends Pertaining to the Leading Corporate Employers in America

NSTAR electric 345kV transmission reliability project, expanded environmental notification form

Mergent's industry review