The volatile trade pattern exhibited by Quanta Services (PWR) continued this winter. Quanta, first discussed here on June 11, 2009, at a price of $24.76, is decidedly not for investors who want a sleep-well-at-night play.

Quanta formed a bear hug in late 2010 ... only to reverse and zoom $7 higher to trade near $24, then pulled back to about $21.50. With PWR, it's been "pick a number between $17 and $25," and that's likely to be its price by the end of the month.

Nevertheless, if you can tolerate the bumps, the view from here still argues that Quanta is well-positioned to benefit from the upgrade of the nation's electric transmission and distribution grid. Quanta's total order backlog is $6.3 billion, including contract wins with several, major utilities.

Quanta Services (PWR), first discussed here on June 11, 2009, at a price of $24.76, certainly is not a play for investors who want to make a quick buck.

In early 2010, the shares of Quanta, a provider of electric/natural gas/telecom infrastructure services, had formed a bear hug and approached the $12 sell/stop loss, then recovered in summer, only to retrench. Were in not for Quanta's power-based infrastructure status, the position would have been closed.

But it wasn't, and guess what? Quanta has rebounded, including a move back above $20 and the key, 50-day moving average.

The stock of Quanta Services (PWR), which I first wrote about on June 11, 2009, at a price of $24.76, has totally misbehaved.

Quanta, a provider of electric/natural gas/telecom infrastructure services, remains well-positioned to benefit from the upgrade of the nation's electric transmission and distribution grid. Quanta's has a total order backlog of $5.6 billion, including contract wins with several, major utilities.

Quanta Services (PWR) stock has dipped since the June 11, 2009 Buy call at $24.76, but I'm reiterating my buy rating. Here's why.

It appears that numerous institutional investors decided to exit Quanta early, to close-out 2009 plays, because the stock in November/December fell out of a $19-25 year-long trading range, plunging to $17.85.

"I'm excited about Quanta Services (PWR), a contracting company that specializes in building utility transmission and distribution infrastructure," says Ian Wyatt.

In his Top Stock Insights, he explains, "The current focus in the U.S. of projects that improve energy conservation, utilize renewable resources, and improve air quality make Quanta an excellent long-term growth opportunity.

"Its customers are in the electric power, gas, telecommunications, and cable television industries. These are stimulus spending customers; i.e., big government organizations and utilities companies.

Quanta Services (NYSE: PWR) is in that rare category called 'broken stock, not broken company.'

Perhaps due to concern that regulatory hurdles that might hinder the upgrade of the nation's electric transmission and distribution grid -- a key business area for Quanta -- the stock has exhibited sideways action since the June 11, 2009 Buy recommendation at a price of $24.76.

Readers of this space know that one of the preferred sectors is the electric/power generation sector, which should benefit from both an expanded infrastructure and ramping energy demand, once U.S. economic growth resumes.

Further, there are lateral lays associated with the above, and Quanta Services (NYSE: PWR) is one.

"A smart grid makes use of coded signals that travel along power lines, much like DSL broadband messages move through the phone telephone," explains growth stock expert Jim Powell.

In Global Changes & Opportunities Report, he looks at two favorite plays on the development of a smart grid: Esco Technologies (NYSE: ESE) and Quanta Services (NYSE: PWR).

"In a smart grid, the signals allow electric meters to report power consumption automatically to suppliers. At the same time, signals can be sent to customer's appliances such as freezers and refrigerators to prevent them from cycling on and off at the same time.

"The Obama administration is poised to spend a lot of money on infrastructure; one important sector is the the nation's electric power grid and the communications system," notes growth stock advisor Dave Dyer.

In his Dave Dayer's Newsletter, he explains, "Some products will win big, others will get nothing, but one company will get more business regardless of which products win: Quanta Services (NYSE: PWR), the leading electrical contractor in the country.

"Quanta's service business stands ready to expand with the infrastructure buildout no matter which products are selected.

"They do design, installation, maintenance, and repair on just about any type of network infrastructure (electric power, telecom, broadband cable, and gas pipelines.) Their moat against competitors is size. They are the largest in their field and that is in no danger of changing.