With such limited visibility -- indeed confusion -- regarding the state of the economy and markets over the coming year, investment advisors have been happy to latch on to those few areas in which there appears to be a greater sense of certainty.
And one such area is infrastructure -- a sector that promises to be a primary focus of President-elect Obama as part of his proposed economic stimulus efforts.
Importantly, the U.S. president-elect is not alone in this regard; countries around the globe, including China, have also proposed large-scale development projects and upgrades to their own national infrastructures.
"The world is focused on an infrastructure buildout, and one of the best ways to capture that trend is with Zurich-based infrastructure giant ABB (NYSE: ABB)," says Keith Fitz-Gerald, noting the company is a global leader in refurbishing and creating municipal and national power supplies.
Keith's full commentary on ABB can be read at: Power play on infrastructure buildout.
Nathan Slaughter looks to Veolia Environnement (NYSE: VE), the global leader in water infrastrcture. He notes, "The EPA has said we need to spend $275 billion to replace aging facilities -- including 800,000 miles of leaky, corroded pipeline -- some of which haven't been upgraded since the 1800's."
Nathan's commentary on Veolia can be read at: Infrastructure spending in water sector
Analyst Glenn Rogers, in The Internet Wealth Builder, looks "south of the border" to Mexico to Cemex (NYSE: CX). He notes, "Basdically, they sell a lot of cement (96 million metric tons in 2007) and it's very hard to build highways and bridges without cement."
Glenn review of Cemex can be read at: 'Solid' play on infrastructure.
Both Mark Skousen and Nick Lanyi have written reports on Southern Peru Copper (NYSE: PCU). Both highlight the "contrarian" nature of this place, but both agree that a building boom would lead to a rebound in copper -- and the price of the mining stock.
Mark and Nick's commentary on Southern Peru can be read at: Two income experts build gains in copper.
Patrick DeSouza and Stephen Leeb look to a package of infrastructure firms, including those focuses on climate change and alternative energy. They look to Fluor (NYSE: FLR) , General Electric (NYSE: GE), Shaw Group (NYSE: SGR), and Vestas Wind Systems (Other OTC: VWDRY).
Patrick and Stephen's commentary can be read at: Obama team targets infrastructure.
Forbes' quantitative analyst, Vahan Janjigian, opts for URS Corp. (NYSE: URS), an engineering, construction, and technical services firm with an expertise in federally-funded projects in the energy and power sectors.
Vahan's commentary can be read at: Forbes quant eyes infrastructure stimulus.
Bill Martin looks to Terex (NYSE: TEX), which make capital equipment for construction, utility and infrastructure industries worldwide. Boosting his case for the stock is a flurry of insider buying activity.
Bill's commentary can be read at: Insiders step up to infrastructure play.
Daniel Frishberg suggests that Obama's stimulus package could reach $1 trillion, with large amounts designated towards bridges, road repairs and other national construction needs. His picks in this area are Fluor Corp. (NYSE: FLR) and KBR, Inc. (NYSE: KBR).
Daniel's commentary can be read at: Obama's to-do list: Bridges and roads.
FInally, Dave Dyer looks to Hill International (NYSE: HIL), a global operation which specializes in project management services required by public works projects.
Dave's commentary can be read at: Project management profits.
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Comfort Zone Investing: It's the revenues that count
Black Friday busy, but momentum may not hold
Six Thanksgiving trades for tasty profits
Reader Comments (Page 1 of 1)
12-20-2008 @ 1:55PM
Jack Valentine said...
Infrastructure was FDR's solution to the depression. NRA, WPA, CCC and others had absolutely no effect on depression. Bread lines continued. He pushed us into WWII, knowing that was the only way we could emerge from such hopelessness. Why would Obommer try this fix? It looks good in small towns to get a brand new post office. For what purpose?
12-20-2008 @ 5:48PM
teltech54 said...
Osama obviously doesn't realize that this is what FDR did, many years ago, before he was born. He is going to tax the working people who are already overtaxed to raise a trillion dollars to put people to work. This is not a fix to the economy. It is a cheap band aid. Yes these people will get jobs and companies will earn money but the real working person is still the driving force in the economy and so long as you keep taxing him to death the economy is only going to go downhill.
12-20-2008 @ 8:53PM
Betty Boop said...
Do you have a better idea, genius? If so, please send it to President Elect OBAMA. He is willing to listen, even to morons like you.
12-21-2008 @ 5:02AM
Divinity said...
I think he states some good facts. You could disagree with someone instead of insulting them. It's cheap and makes you look unintelligent when you speak like that. Which is not good especially when your the one who is trying to sound like you know what your talking about by insulting his intelligence because of his thoughts.
12-21-2008 @ 5:25AM
idtheftnarc said...
Well Betty Boop... I have written Obama... Blogged on Obama's website.. in addition to reaching out to my state representatives... and the answers to our economy would require them to rid the nation of corruption in their own ranks. My system of 0% Capital Gains to promote investing and job creation, teaching business and investing in high schools to help the poor understand the "Rich man's game" in addition to changes in spending and economic philosophies and a more concerned and less bullying effort to fight crime is a better system... But Obama and his corrupt Chicago politicians don't want to hear it... They just want their share of the corruption pie. teltech54 is right... when the surpluses run out Inflation is going to be worse than ever, and Obama's plan to strengthen Unions and overtax was Jimmy Carter's plan in the 1970's.... I have shorted the dollar and invested abroad... Tripling my holdings this year will not even compare to the wealth I will build with incomeptant Obama at the helm... So, you won't hear me complain... I say if you can't talk em into reason... make money off of their blundering... See ya in 4 years..I'll be the one with the top hat, spatz, and coat tails
12-21-2008 @ 5:32AM
idtheftnarc said...
to the writer of this story... you are severely behind the times... Every savvy investor knew Obama was going to do this in September.... But, the real gains will be Dry Freight shipping. Iron Ore doesn't come from Mexico and America has burned through all it's own in the Northeast... SHips from Australian will fuel China's Iron Ore consumption and Ships from Brazil will fuel America's consumption of Iron Ore.... And investing in corrupt American companies that mishandle profits by way of expense accounts and personal expendetures instead of paying dividends are a waste of money... Invest in companies that pay the owners of the company, the shareholders.. dividends... counting on share value gets you nowhere.. which is obvious in today's market...
12-21-2008 @ 8:47AM
Joe said...
Get rid of the Federal Reserve. It has caused all of this. If interest rates were based on supply and demand they would have gone through the roof with the heavy borrowing and that would have slowed things down. The Fed however kept rates artificially low and made it much worse.
12-21-2008 @ 10:34AM
THE Last AMERICAN said...
Hello dear friends,
1- its the right way
to help the carcompanies.
2- America needs a lot of
manpower work. for a better infrastructure
-- and green renovation Buildings.
you can save a lot of Gas -costs....
3-
You have to grown a First american-
Bank how can deliver the Kredits.
after Green Rules- for a better
america.
4-a Happy new Year
5- merry Christmas
CHE- Jimmy- emil
12-21-2008 @ 1:55PM
Gary said...
As to the basic question, while Obama may try to do a 1930's type WPA, being a Democrat, he will use the same basic assumption, that being it's a national imperative and so will be a kind of time and materials thing. That being a given, where are the apparent profits to allow investors to prosper. Oh, money will be made under the table but above board it will be made to look like the $1 a year men. Nope, gold for me...no construction stocks.
12-21-2008 @ 2:49PM
T. J. Dillon said...
I have never found a way to effectively communicate with the Obama Team. Any response is just "be a contributor" and I did that before the election.
1-02-2009 @ 10:10AM
mike said...
I worked for a short time for URS...GOT TOTALLY SCREWED. They laid us off after 6 years of faithful work and kept the "new kids". They gave us only two weeks pay as severance. Not to note layoff notice of seven days.