"One theme 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 firm in these areas." Here's 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.
"With each having been pummeled in the recent market turmoil, this is a good opportunity to buy them on the cheap.
"Fluor’s energy projects have been hurt by the recent plunge in commodity prices. But as massive government stimulus gets the economy going again, rising demand for commodities will push commodity prices back up, and Fluor’s share price should rise as well.
"GE has been hurt by its financial unit’s exposure to the credit markets. Here, too, the government’s aggressive injection of liquidity should provide cover. Meanwhile, GE is dominant when it comes to virtually any environmental infrastructure project, from water purification to wind turbines.
"Baton Rouge-based Shaw Group (NYSE: SGR), capitalized at $1.2 billion, is another company active in both the infrastructure and energy sectors. It also does significant business in waste management, hitting another environmental theme.
"Looking abroad, Vestas Wind Systems (Other OTC: VWDRY) is an attractive choice. This Danish wind turbine company is planning to expand in the U.S. and is reported to have a growing order backlog.
"Another foreign play is Switzerland’s ABB (NYSE: ABB), which makes cables, transformers and various other products related to power electronics and management. Among other things, it is a leader in providing power equipment for wind farms, including offshore projects.
"The stock trades near a 52-week low, largely because of concerns about weaker global infrastructure spending. Such concerns should ease as the U.S. and China make clear their commitment to infrastructure."
