Back in the old days, we used to look at individual companies, sectors... analyze industry data points, do comparative valuation analysis, read earnings reports with great interest, etc etc. Those were good times. Now, we wait every day for 3 PM, play a bunch of ETFs for a 1 hour trade, and then try to predict what ETFs would be best suited for the next 2-48 hours based on charts. That's "investing" today.

Just for old times sake I thought I'd look at a group that I (still) like for the long run - it seems almost every world government is going to fix their issues with infrastructure projects. The problem is the consensus that project after project will get cancelled due to low oil prices and lack of credit. It really does not matter what side of the chalk line you are on - when these stocks rally people will cling to one side of the arguement and when the stocks sell off, they will cling to the other. This is called constructing a story based on price action rather on any predictive ability. This group of stocks has actually rallied pretty well the past week based on the Obama dream for new highway projects, rebuild electrical grid, and unicorns galloping across open plains of ... ok well, toll roads. All by summer 2009 of course. Perception is reality.

What I've done below is done a quick and dirty back of envelope look at the main infrastructure stocks we follow - I've put the stocks into 2 groups: Premium Franchises and Everyone Else. I never knew a Premium Franchise would we worth the high price of 7x earnings but it is nowadays. In the former group are Jacobs Engineering Group (JEC), Fluor (FLR) and for some odd reason Shaw Group (SGR) - this is based on their 2009 multiple ex cash. That is, excluding the cash (net of debt) on their balance sheet, what the remaining business is being valued at. These stalwarts are now valued at 7-9 2009 estimates ex cash.

In the latter group are the rest of the motley group, falling mostly around 3x ex cash. As you can see 4 of the 7 names have 25% or more of their market cap in cash, with KBR (KBR) at a staggering 54%. Each of these companies have unique areas they play in - i.e. Shaw Group (SGR) has heavy nuclear exposure, McDermott (MDR) coal so they are not completely equal comparisons. With that said, Fluor and Jacobs have carried a premium to the group for a long while now and continue to do so.