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ABB (ABB): Power play on infrastructure buildout

This post is part of a special report, A Dozen Ways to Play an Obama Building Boom.

"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.

In The Money Map Report, he explains, "We've been recommending the stock throughout this crisis; and while its up 50% off its low, we believe the best is still to come."

"Chances are you'll be hearing a lot of talk about it in the years to come as governments around the world initiate massive domestic fixed asset programs to create jobs, and improve critical services such as power distribution.

"President-elect Obama is focused on infrastructure while China's $586 billion stimulus package is also aimed at infrastructure building.

"World leaders recognize that the one thing they need, that they can't afford to lose, and that their people can't do without, is power. And lots of it. And one of the best ways to capture that is with Zurich-based ABB.

Continue reading ABB (ABB): Power play on infrastructure buildout

Best Stocks for 2008: Value shopping at Home Depot (HD)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"Our favorite conservative pick for 2008 is Home Depot (NYSE: HD)," says Daniel Frishberg, editor of The MoneyMan Report and host of BizRadio.

"This is a stock that has been beaten down due to the weak housing market. We believe, based on the fact that it owns most of the real estate its stores sit on and these are typically in the best areas of town, that it's undervalued.

"With new management in there and a housing market that will stabilize, home improvement will do very well over the next several years. Home Depot typically trades at 14X cash flow since 1995. Based on that one parameter, the stock could be a double over the next couple of years.

"The company's balance sheet is in excellent shape at this point. We believe most of the bad news is priced in and with a Fed that will continue to cut interest rates, Home Depot will be an economically sensitive stock that will benefit. In our view, this is a 2-3 year hold.

Continue reading Best Stocks for 2008: Value shopping at Home Depot (HD)

Top resource ideas: A 'bedrock' bet among hard assets

This article is part of a 20 article special report on "Metals, miners and money".

"Roadways and bridges around the U.S. are in terrible shape," notes Neil George, who looks at a rather unexpected "resource." The senior editor of Personal Finance explains, "We are recommending Martin Marietta Materials (NYSE: MLM), the leading company in bedrock, a little discussed, but highly important "hard asset."

He notes, "Bedrock is literally the rock that gets laid down before any concrete or asphalt is poured or any pylon is set. Aggregate forms the base of every project -- roadways and bridges as well as airport, rail system, or seaport improvements.

"Martin Marietta Materials, which was spun off from the aeronautical engineering company Martin Marietta Corp, is the best in the business. The firm is now one of the top two players in its space; it's working on projects in 31 states.

"Federal, state, and local authorities are starting to come to the table because they know we need major work to keep the economy moving. Congress is forming legislation for roadway and bridge spending. And state governments are coming up with new, overdue transportation spending plans.

"The company sells more than 200 million tons of aggregate each year, and that number is rising at a steady rate of nearly 13% annually. That's before we ramp up to catch up on our current mess.

"Margins are running at more than 18% and are increasing by more than 11%. The more Martin Marietta Materials sells, the more its profits climb. And it's cheap: The shares have yet to catch up to the value of its book of business."

Each day, Steven Halpern's TheStockAdvisors.com website features the latest investment commentary and favorite stock picks of the nation's leading financial newsletter advisors.

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IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 28, 2012: 06:27 AM

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