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Obama's to-do list: Bridges and roads

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

"President-elect Obama recently announced that he is working on a stimulus package that could be as large as $1 trillion," notes BizRadio host Daniel Frishberg in The MoneyMan Report.

"This money would be used on infrastructure. Items such as new roads, bridges, etc. would be on the 'to do list.'

"The theory is that this would bring jobs and thus help stimulate the economy. On this news, many of the infrastructure companies rallied. These are the same companies that have been severely beaten up due to global growth slowing.

"Thus, with a new stimulus package focused on infrastructure spending imminent, not only in the U.S. but some emerging countries, we are using some of our cash to invest in various infrastructure companies.

"We are purchasing Fluor Corp. (NYSE: FLR). This is a global engineering firm that will be a huge beneficiary from all the infrastructure spending.

"Even though the stock has recovered the last few weeks, it is still down over 50% from its high. Given their prospects and valuation, we believe this is a great company to invest in at present levels.

"We are also purchasing KBR, Inc. (NYSE: KBR). The company was spun off from Halliburton and they focus on engineering & construction. KBR gets a lot of their sales from contracts in Iraq and other countries.

"The stock fell 75% before recovering somewhat. However, the stock is still down 63% in the last 12 months and we believe the prospects for their business are excellent."

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.

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

Obama Pick: StemCells Inc.

It was only two weeks ago I posted about one of the stocks I own and follow closely Chasing Value: Intuitive Surgical Earnings -- what now?, a company that I consider an "Obama pick". My frequent readers know that the company is one of my older investments and one that has paid off handsomely. Although Intuitive Surgical Inc. (NASDAQ: ISRG) may still be a profitable investment at it's current level, at this point, it is well covered.

Searching for something less known, and certainly more controversial, I have the ideal Obama stock pick to add to your watchlist, StemCell Inc. (NASDA: STEM) which closed yesterday at $1.90. per share. It is not profitable, spends heavily on Research and Development and is highly speculative. So was ISRG when I got in very early.

The company profile states that STEM "discovers cell-based therapies to treat diseases of the central nervous system (CNS), such as cerebral palsy and Alzheimer's disease, as well as spinal cord injury. It is researching stem cell and progenitor cell (cells that have developed from stem cells) therapies to repair neural tissue damaged by disease and injury, and has discovered markers for CNS stem cells and a way to reproduce them for transplant."

Continue reading Obama Pick: StemCells Inc.

Obama Picks: Funding the future, from electric cars to wind power

"Our hope is that the new administration decides to fund 'the future'," says Sean Broderick. In Money and Markets he looks to some favored exchange traded funds offering long-term investors exposure to alternative energy, wind power, electric cars and the rebuilding of our nation's infrastructure.

"We need an efficient power grid that can carry renewable energy -- solar from the Mojave Desert and wind from the Great Plains -- to the population centers of the U.S. Too bad our power grid is 100 years old and falling apart at the seams. And demand is growing every year.

"In addition, we need more railroads for an energy independent America. Building those lines is a good bottom-up way to boost the economy. And we need an electric car program.

"I'm talking about developing mass-market battery-powered cars (hybrid or plug-in) that achieve at least 100 mpg of gasoline on new fleets by the year 2015.

"These three programs have one thing in common: Good American jobs that can't be shipped overseas. If you want to jump-start the economy, that's a 1-2-3 that might work.

Continue reading Obama Picks: Funding the future, from electric cars to wind power

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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 29, 2012: 12:42 AM

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