Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.
Sydney, Australia's Macquarie Infrastructure Company Trust (NYSE: MIC) is the top conservative idea for 2007 from Neil George, editor of Personal Finance, while Macquarie Infrastructure Group (OTC: MCQRF), is his top speculative play.
The advisor explains, "Infrastructure is the foundation of our economy. And whether owned by privateers or the public, we need more and better roads, bigger airports, better power and water systems. And there are companies getting the bids over and over again to make it all happen.
"Sydney, Australia might not come to the forefront of your mind when it comes to our nation's infrastructure, but that's where most of the capital is being pooled together to quietly gobble up deal after deal.
"Parent company, Macquarie Bank, first cut its teeth on financing and investing in several projects in its own back yard for years before taking its deal-making skills on the road.
"From mineral and other land development financing to roadways -- the bank has been amassing a talent pool that not only understands the economic vitality of infrastructure -- but the best means to grab more of it for its investors.
"Macquarie Infrastructure Company Trust was put together by the parent bank to acquire and run a collection of infrastructure facilities primarily in the U.S., including roadways, airport facilities, parking garages, and energy distribution and storage facilities.
"Structured originally as a pass-through trust, dividends come as a combination of our cut of the profits as well as our share of the capital depreciation, otherwise known as return of capital. The cash flows are generous with a current dividend rate exceeding 6.5%, which should continue to advance making it a perfect cash cow play.
"The parent bank has also created the Macquarie Infrastructure Group, which has a broader global focus on infrastructure facilities beyond the U.S. This is in contrast to the NYSE-listed Infrastructure Trust, with its focus on U.S. facilities. We recommend buying the Infrastructure Group up to $3 noting that in Australia -- like in London -- many blue chip stocks commonly trade at lower per share rates."
New Facebook share structure hints at IPO
Before the bell: Futures higher ahead of housing, jobless data
Nuclear power is on the comeback trail
Reader Comments (Page 1 of 1)
12-29-2006 @ 1:54PM
RONALD ZIBELLI said...
inteeresting
3-08-2007 @ 3:20PM
Charles Putman said...
they seem to have a vary well run funds I am in MGU. Had done well by me.