One facet of the Obama administration's sweeping stimulus initiatives of which I have taken particular interest is its protracted effort to increase our national broadband access and capabilities. In pursuit of that end, The Broadband Technologies Opportunities Program (BTOP), which seeks to build and enhance broadband access in unserved and underserved regions of our country, has been provided with over $4.5 billion in Recovery Act funds.

I am pleased to report that amazingly, BTOP has already dispensed with much of the red tape that might normally bog down an effort of this magnitude. Large chunks of BTOP funds are beginning to be granted. In the short term, the benefit of this program may well be to create jobs. In the long term, these infrastructure improvements could possibly increase the profit bases of companies such as Verizon Communications (VZ), Sprint Nextel Corp. (S), AT&T (ATT) and a host of other digital communication and entertainment providers.

Continue reading Big Stimulus Money Is Hitting the Wires

Big Stimulus Money Is Hitting the Wires originally appeared on BloggingStocks on Mon, 08 Feb 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading U.S.'s Infrastructure: Hardly Ready for the 21st Century

U.S.'s Infrastructure: Hardly Ready for the 21st Century originally appeared on BloggingStocks on Wed, 13 Jan 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Caterpillar is a patience-builder

Caterpillar is a patience-builder originally appeared on BloggingStocks on Wed, 15 Apr 2009 10:00:00 EST. Please see our terms for use of feeds.

Continue reading A GE play is possible, but it's not for the squeamish

A GE play is possible, but it's not for the squeamish originally appeared on BloggingStocks on Mon, 02 Mar 2009 18:15:00 EST. Please see our terms for use of feeds.

Continue reading Fluor (FLR) knows there's plenty of work to be done in the U.S.

Fluor (FLR) knows there's plenty of work to be done in the U.S. originally appeared on BloggingStocks on Tue, 17 Feb 2009 08:15:00 EST. Please see our terms for use of feeds.

Continue reading John Deere: How bumpy a ride?

John Deere: How bumpy a ride? originally appeared on BloggingStocks on Mon, 16 Feb 2009 10:00:00 EST. Please see our terms for use of feeds.

The industrial equipment giant's brand is synonymous with big, bad earthmoving construction machinery. In fact, it's doubtful that any major construction project performed in America since the Great Depression hasn't been performed without the help of a "Cat."

Given the Obama administration's focus on shovel-ready infrastructure construction jobs as the answer to what's ailing our economy, it stands to reason that Caterpillar (NYSE: CAT) equipment will once again be called upon to help rebuild and remodel America's crumbling roads, tunnels and bridges.

Think about this, every time you hear the words "shovel-ready jobs," you should think about the makers of the actual shovels. And there is no denying that Caterpillar makes the biggest and best shovels on the planet.

Take a look at all ten stocks to fall in love with again.

Jim Woods is a Senior Editor for OptionsZone.com.

Ten stocks to fall in love with again: #2 Caterpillar (CAT) originally appeared on BloggingStocks on Sat, 14 Feb 2009 09:00:00 EST. Please see our terms for use of feeds.

"In a few years we'll be staring at new highs in the prices of many natural resources," says Larry Edelson, a specialist in resource-related stocks. In Real Wealth, he looks at two exchange-traded funds focused on food and water.

"Mind you, the U.S. and global economies will not get back to the growth levels we've recently seen, not anytime soon.

"But they don't have to for natural resource prices to soar again. The chief reason they will climb again: Massive, worldwide currency devaluations, especially in the U.S. dollar.

"Moreover, natural resources will get a huge boost from the massive infrastructure spending that is now commencing around the world. I expect two key sectors in particular to get a big boost, almost immediately - agriculture and water.

Continue reading Water and agriculture: ETFs for a resources rebound

Water and agriculture: ETFs for a resources rebound originally appeared on BloggingStocks on Thu, 12 Feb 2009 12:41:00 EST. Please see our terms for use of feeds.

It got little buzz this week, but Meadow Valley Corporation was able to close its going-private transaction. True, the deal size was modest, coming to $61.3 million.

Although, bear in mind that the deal was announced in July of last year -- just before the implosion of the global financial markets. Thus, the private equity sponsor, Insight Equity, had the courage to get the deal done, which will certainly bring credibility to the firm.

Based on the proxy statement, the decision to go private actually began in 2007 (yes, it seems like a different era back then). All in all, it was a diligent process and management was definitely focused.

Continue reading Meadow Valley: A private equity deal can get done

Meadow Valley: A private equity deal can get done originally appeared on BloggingStocks on Sun, 08 Feb 2009 14:40:00 EST. Please see our terms for use of feeds.

Do not underestimate the power of a new administration in Washington. With the ability to spend a huge amount of dollars, team Obama can wield tremendous influence in the market.

Case in point is the stem cell space. It is widely expected that Obama will issue an executive order eliminating restrictions on stem cell research.

Stocks like StemCells Inc. (NASDAQ: STEM) and Geron Corp. (NASDAQ: GERN) have been moving higher since the inaugural.

Coincidentally, on Friday, GERN announced approval for human trials for its treatment of spinal chord injuries using stem cells. Both GERN and STEM were up big as a result.

Another space expected to do well under the Obama administration is construction. A massive stimulus plan is said to be coming in February. A key point of the plan will be to boost infrastructure spending.

The dollars will benefit companies like Fluor Corp. (NYSE: FLR) and Jacobs Engineering (NYSE: JEC). Unlike stem cells, the market has yet to move these stocks higher. FLR is down more than 10% and JEC is down nearly 18% so far this year.

Continue reading Missed the stem cell move? Make a play at Jacobs Engineering

Missed the stem cell move? Make a play at Jacobs Engineering originally appeared on BloggingStocks on Sat, 24 Jan 2009 12:40:00 EST. Please see our terms for use of feeds.

Continue reading U.S. infrastructure building will require some pruning, too

U.S. infrastructure building will require some pruning, too originally appeared on BloggingStocks on Wed, 21 Jan 2009 18:06:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"Granite Construction (NYSE: GVA) is a play on President-elect Barack Obama's plans to plow vast amounts of money into infrastructure," notes contrarian Todd Salomone.

In Schaeffer's Investment Research, the analyst explains, "Granite Construction -- my top pick for 2009 -- provides civil construction services, including projects designed to improve streets, roads, highways and bridges."

"Investing in infrastructure is one of Obama's solutions to address a deteriorating economy. There is $64 billion in 'ready-to-go' projects, of which GVA should be a beneficiary.

"The shares Granite Construction have performed admirably in 2008 amid an extremely weak broad market. For example, through mid-December, GVA shares were up 24% as the broader S&P 500 Index was down 38%.

"In November 2008, the equity climbed above the 40 area, which has capped the shares' rally attempts during the previous 12 months. For chart watchers, a concern would be the 48 area, which would mark a 50% retracement of the August 2007 high and the October 2008 low. Such retracement areas can sometimes act as technical resistance for a stock.

Continue reading Top Stock Picks '09: Granite Construction (GVA)

Top Stock Picks '09: Granite Construction (GVA) originally appeared on BloggingStocks on Wed, 14 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.

President-elect Barack Obama has said his $700 billion stimulus package will add three million jobs to the economy. Skeptics don't think this is possible because the recession has grown stronger at a speed most economists did not anticipate.

Now, Obama's people think he can do ever better. According to the AP, "President-elect Barack Obama countered critics with an analysis Saturday by his economic team showing that a program of tax cuts and spending like he's proposed would create up to 4.1 million jobs." That math is hard to defend.

The economy lost 540,000 jobs in December. Some experts say it could stay on that pace for the first half of this year. If so, the economy will drop another three million jobs. Certainly looking at the full year, the three million number is certainly reasonable.

Much of the Obama plan is based on building out infrastructure for the energy grid, medical IT, and public works. Programs of that magnitude could take several quarters to get in place. They will involve complex logistics and new agencies to supervise them. By the time most of that is up and running, it could be near to the close of the year.

The reasons that adding four million jobs in America is unlikely is that the economy will shed jobs faster than a stimulus package can ad them, certainly during the period when the economy may be taking its hardest hit. Obama can't fill in that hole fast enough, let alone build a mountain on top of it.

Douglas A. McIntyre is a editor at 247wallst.com.

Can Obama plan add four million jobs? originally appeared on BloggingStocks on Sun, 11 Jan 2009 10:40:00 EST. Please see our terms for use of feeds.

Not all infrastructure plays are created equal. What has been a fabulous trend to ride since the lows of November has left a few players behind. One of those is Manitowoc Company (NYSE: MTW).

Granted MTW has improved off it lows, but it has not shared the same momentum heading into 2009 as others. Shares MTW sold off to the tune of 12% Thursday and lost another 3% on Friday.

The company stated that profit will likely come in at the low end of its previously announced guidance range of $3.15 to $3.25 per share. Given that there's only a 3% difference between earning $3.15 per share and $3.25 per share, what accounts for the other 9% of today's sell-off?

The company manufactures and sells cranes: lattice-boom crawler cranes, mobile telescopic cranes, tower cranes and boom trucks for use in energy, petrochemical, industrial projects and infrastructure development such as the building of roads, bridges, commercial and residential construction, and mining and dredging.

These are just the things that will do well once the new administration passes its massive infrastructure spending bill. For whatever reason, the stock cannot ride the coattails of this expected boom to its business. MTW now forecasts earnings for '09 of just $1.35 to $1.60 per share. Analysts, on average, were expecting earnings of $2.63 per share, so I take the sell-off not as an indictment of 2008 earnings, but of 2009 earnings.

These downside revisions are troubling to be sure, but do they set the table for future earnings gains?

Continue reading An infrastructure play that's still really cheap

An infrastructure play that's still really cheap originally appeared on BloggingStocks on Sat, 10 Jan 2009 12:20:00 EST. Please see our terms for use of feeds.

President-elect Barack Obama campaigned -- and has continued to generate positive press -- on his commitment to job creation.

I've been scratching my head at this for awhile and wondering: Why is job creation a worthy goal? Shouldn't the goal be economic growth, and job creation is a happy byproduct of that?

Writing in Reason, Jacob Sullum, dissects exactly why Obama's rhetoric on job creation is nonsensical, illogical, and flies in the face of economics:

Obama also wants to spend $60 billion to "provide financing to transportation infrastructure projects across the nation." He says "these projects will create up to two million new direct and indirect jobs and stimulate approximately $35 billion per year in new economic activity. Fixing a bridge, widening a highway or building a light rail system may or may not make economic sense. But the fact that it involves paying people to operate jackhammers and pour concrete does not make it any more worthwhile. If creating jobs can justify transportation projects, why not fill the country with bridges to nowhere.

My optimistic hope is that Obama realizes that job creation is not a worthy goal and mentions only because he's politically savvy enough to know that it will generate consensus around his ambitious proposals. But if his billions of dollars in infrastructure projects are motivated by a desire to create jobs, we are in a lot of trouble.

The myth of job creation originally appeared on BloggingStocks on Sun, 28 Dec 2008 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Ray of light: This way to the recovery -- solar power, solar jobs

Ray of light: This way to the recovery -- solar power, solar jobs originally appeared on BloggingStocks on Mon, 15 Dec 2008 16:35:00 EST. Please see our terms for use of feeds.

President-elect Obama has said that he wants to rebuild our infrastructure as a way of jump starting our economy and creating jobs. What does this really mean? To better understand this concept, let's look at a single imaginary construction project. Let's also assume that the Federal Government acts to approve projects submitted by state and local governments. Which people and what skills are involved in it?

Well, first you need people who are skilled at creating and preparing budgets, who know Federal, State and Local laws and regulations and who also know environmental laws at the federal, state and local levels. You need people who know how to write and submit bids with reasonable time constraints. You need computer programmers to write the programs for the project.

Then you need contractors who can perform and complete the project. They, in turn, hire project managers, foremen/women and construction crews. You need civil engineers, architects, and surveyors. You need material suppliers and manufacturers. You also need inspectors, consultants, accountants, auditors and tax specialists. And throughout this process, there are a host of federal, state and local agencies and their employees who must be involved.

Continue reading Obama plans $1 trillion dollar stimulus -- who benefits?

Obama plans $1 trillion dollar stimulus -- who benefits? originally appeared on BloggingStocks on Mon, 15 Dec 2008 12:16:00 EST. Please see our terms for use of feeds.

Continue reading Obama's infrastructure spending program, largest since 1950s, could jump-start U.S. GDP

Obama's infrastructure spending program, largest since 1950s, could jump-start U.S. GDP originally appeared on BloggingStocks on Mon, 08 Dec 2008 14:55:00 EST. Please see our terms for use of feeds.

President-elect Obama plans to use fiscal policy to put the brakes on the economic slump. He intends to do that through infrastructure spending. And figures as high as $500 billion to $1 trillion have been mentioned. Does this make sense? How would the money be spent? How many jobs would it create?

At this point, infrastructure spending does make sense. That's because the first line of defense against an economic contraction is to cut interest rates. But the Fed is pretty much out of bullets since short-term rates are near zero. It will try to lower longer-term rates, but the economy has not responded to efforts to get people to borrow more money to fix a problem created by too much borrowing. Government spending is the next line of defense and it could increase aggregate demand which would help.

The money would be spent on different projects to strengthen U.S. infrastructure; make it more energy efficient and improve internet access. Such projects include building or repairing roads, bridges, schools, sewer systems, and other public utilities. Obama also proposes to "make government buildings more energy efficient, modernize school classrooms and libraries with computers, expand access to broadband Internet service and upgrade information technology in hospitals and doctors' offices," according to the New York Times.

Continue reading Could $136 billion in infrastructure spending create 5.4 million jobs?

Could $136 billion in infrastructure spending create 5.4 million jobs? originally appeared on BloggingStocks on Sat, 06 Dec 2008 10:14:00 EST. Please see our terms for use of feeds.

General Electric (NYSE:GE) has looked to Asia as an engine for growth in its infrastructure business, which is the company's largest division. Management has repeatedly talked about offsetting slowing growth in the U.S. and the EU with increased business in developing nations, with China, the world's most populated country, out in front. Despite its GDP growth, China is still behind many other countries in building large projects to provide energy and transportation.

GE's plans got a blow when its most direct global competitor, Siemens, (NYSE: SI), announced that its business was being hurt because of cutback in spending in China. According to The Wall Street Journal, "Heavy government spending on infrastructure to boost economic growth has the potential to benefit Siemens because its portfolio includes transformers for ultrahigh voltage power lines, control systems for high-speed trains, and oil and gas equipment." But now it sees those orders slowing quickly.

The news has to be a significant blow to GE. As the recession spreads, its entertainment business, NBCU, is likely to be hurt along with its huge medical devices business. Its financial arm is already experiencing trouble due to the credit crisis.

The last hope for rapid earnings growth was the world's continuing need to upgrade infrastructure. It appears that opportunity is walking out the door with the rest of GE's business.

Douglas A. McIntyre is an editor at 247wallst.com.

Siemens news in China bad for GE originally appeared on BloggingStocks on Fri, 05 Dec 2008 10:55:00 EST. Please see our terms for use of feeds.