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Energy savers: Betting on Obama's new New Deal

"President Obama has stated that he's been studying Roosevelt's first 100 days and the way out of the current economic mess will look a lot like the New Deal," says David Fessler.

The advisory panelist for The Oxford Club explains, "Seventy-five years after Roosevelt's inauguration, I think we will soon see President Obama get the ball rolling on his version of the New Deal, focused on two very specific areas: energy and infrastructure." Here, he looks at stocks poised to benefit.

"Saving energy will be one of his first initiatives. It's what will give us the quickest bang for our buck. Better insulation in homes, programmable thermostats, fluorescent bulbs, more fuel-efficient cars, energy management systems for use in larger-scale commercial buildings and beefed-up public transportation are just a few of the ways to save energy.

"The government will likely offer attractive tax incentives to rally support. So who stands to prosper from such initiatives?

"Big blue-chip companies, like Owens Corning (NYSE: OC), maker of insulated glass and building insulation; General Electric (NYSE: GE), manufacturer of wind turbines, energy control and infrastructure products; and Johnson Controls Inc. (NYSE: JCI), maker of energy management systems (for buildings and vehicles) and hybrid vehicle batteries.

Continue reading Energy savers: Betting on Obama's new New Deal

Obama team targets infrastructure

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

"One theme that already seems likely to dominate the playbook for the Obama team is 'infrastructure plus' -- encompassing alternative energy, the environment, and health care," says Patrick DeSouza.

The contributing editor to Steven Leeb's The Complete Investor explains, "These priorities will translate into tremendous opportunities for well-situated firms in these areas." Here are some ideas:

"The Obama Administration is likely to link infrastructure with specific policy priorities such as alternative energies and environmental protection.

"In this way, it can launch public work ventures that create jobs while simultaneously fulfilling campaign promises to tackle climate change and resource degradation. Companies with crossover appeal-a foot in both infrastructure and environmental businesses– are the ones to look at.

"Fluor (NYSE: FLR) and General Electric (NYSE: GE) -- which are already holdings in our growth model portfolio -- both fit this bill, with diversified product lines that range from large-scale infrastructure engineering projects to alternative energy infrastructure to renewable power.

Continue reading Obama team targets infrastructure

Investing in wind power

"Alternatives may not be an important source of electricity, but they are the fastest-growing subsector in the energy space," says energy sector expert Elliott Gue in Personal Finance. Here, he looks at wind power.

"The US Energy Information Administration (EIA) projects that wind power will grow by more than 7%, encouraged by generous government subsidies. Compare that to just 1.5% annualized projected growth in total electricity demand.

"The world's largest wind turbine producer, Vestas Wind Systems (OTC: VWSYF), fell on hard times back in 2005. It priced some of its turbines too aggressively and saw a surge in warranty claims because of defective components.

"But the stock appears back on track. Warranty provisions are down to 5% of revenues. Profit margins surged 4 percentage points year-over-year because of more rational turbine pricing. Vestas' current backlog stands at EUR4.1 billion (US $6.03 billion), up more than 30% year-over-year.

Continue reading Investing in wind power

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Last updated: February 12, 2012: 06:26 AM

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