Profiting from Obama's Infrastructure Plans

As we await the next deluge of freshly printed loot from the Treasury to debt our way out of the recession, a bit of pre-emptive research may assist you to find stocks which may profit from the Obama infrastructure plan. My initial investigation into this realm led me towards some interesting securities. Perhaps a few may be appropriate for your speculative portfolio. Here they are:

• Monarch Cement Company (MCEM.OB) - . The Portland Cement-brand company has excellent cement products for infrastructure projects. Trading at $25.75 and yielding 3.57%. 52-week range between $20-30.00.
• Texas Industries (TXI) is a heavy construction play. Excels in three areas,cement, aggregates and consumer products all tied to infrastructure. Trading at $30.48 and yielding 1.0%. 52-week range between $19-80.00.
• United States Lime and Mineral Company (USLM) - A lime and limestone company that plays a role in the construction, steel, municipal sanitation, water treatment, paper, roof shingle and agriculture. Trading at $21.67 with nil yield. 52-week range between $19.-46.00.
• Martin Marietta Materials (MLM) - A major producer of aggregates for the infrastructure industry. Trading at $90.90 and yielding 1.76%. 52-week range $58.-143.00.
• Vulcan Materials (VMC) - One of my favorites. Another major producer of aggregates for infrastructure with a major political plus of having large operations in the Chicago,Illinois area. Trading at $66.75 and yielding 2.94%. 52-week range $39.-101.00.
• KBR, Inc. (KBR) - This company is well-positioned in government and civilian infrastructure services. Formerly a division of Halliburton. Trading at $12.94 and yielding 1.55%. 52-week range $9.00-45.00.
• URS Corp. (URS) - A Pelosi-posted San Francisco provider of construction, engineering and technical services for infrastructure around the world. Trading at $36.41 with a nil yield. 52-week range $19.-57.00.
• Jacobs Engineering (JEC) - Specialist in providing direct-hire construction services, modular construction activities, value-added infrastructure services, etc. Trading at $42.43 with nil yield. 52-week range $26.-104.00.
• Foster Wheeler (FWLT) - Superb global construction company and a specialist in infrastructure development. Trading at $21.52 with nil yield.52-week range $13-86.00.
• Granite Construction (GVA) - Heavy civil construction contractors. Focuses on infrastructure projects nationwide. Trading at $45.83 with a 1.13% yield. 52-week range $21.-48.00.

Disclosure: None

Comments

[Rodney:]

Thanks Rodney!! After I read about Obama's plan to grow the economy I was looking for some ideal stocks to consider adding to my portfolio. You hit it right on the head and just made my life easier.

2008 Dec 08 09:17 AM

[flyingdutchman:]

great stuff I was scratchng my head on the construction side of the proposed infrastructure boost .
Now what about the machinery side , such as Cat, etc
Etf anyone ? PKB is a US based construction ETF with minimal exposure to the housing problems.
These have moved up today so waiting for a pull back might be in order .

2008 Dec 08 03:02 PM

[rhodope:]

Thanks Rodney,
It's obvious when you are thinking Infrastructure you are thinking bridges and buildings, but what are your thoughts on next gen power grid?
What are your thoughts on TRR?

2008 Dec 08 04:00 PM

[dondon:]

Any thoughts on Alon Energy (ALJ) the asphalt refiner?

2008 Dec 08 04:05 PM

[jgraziani:]

AAA had this to say regarding Obama's plan for infrastructure and how to garner public support (posted to AAA.com/news this morning):
"This federal investment is long overdue and will have the combined benefits of stimulating the economy in the short-term, while creating a firm foundation for the nation’s long-term economic growth through the improved mobility of its citizens and movement of the goods and services on which they rely.

"To ensure public support, it is critical taxpayer money is directed to the most important transportation needs and is invested wisely in programs and projects that will have a positive impact on local communities and the broader transportation network essential for our nation’s economic vitality. A transparent process must be in place to ensure that this stimulus investment goes towards projects that produce measurable transportation improvements for motorists and other users of the transportation system."

In the interest of full disclosure, I work for AAA's national office in Heathrow, FL.

2008 Dec 08 04:08 PM

[Letsberealhere:]

Have you read any of the "Economic Stimulus" bill that was just passed by the democrats and three republicans? It looks more like earmarks "pay offs" to any and all campaign special interest groups. Percentage wise, there is very little money for new infrastructure projects - say nothing about stimulus for the already burdened taxpayer. Seriously, 1Billion for education on condom use and sexually transmitted diseases? $4.19 billion for ACORN, Association for Community Reform Now, for “neighborhood stabilization activities?" How does this 780 some odd Billion in payouts stimulate or economically recover anything? Or is this going to happen in the following DOLE OUTS? Isn't this what he said in his public address? There is more WASTEFUL SPENDING coming. Hard working taxpayer, hold on to your wallet.


On Dec 08 04:08 PM jgraziani wrote:

> AAA had this to say regarding Obama's plan for infrastructure and
> how to garner public support (posted to AAA.com/news this
> morning):
> "This federal investment is long overdue and will have the combined
> benefits of stimulating the economy in the short-term, while creating
> a firm foundation for the nation’s long-term economic growth through
> the improved mobility of its citizens and movement of the goods and
> services on which they rely.
>
> "To ensure public support, it is critical taxpayer money is directed
> to the most important transportation needs and is invested wisely
> in programs and projects that will have a positive impact on local
> communities and the broader transportation network essential for
> our nation’s economic vitality. A transparent process must be in
> place to ensure that this stimulus investment goes towards projects
> that produce measurable transportation improvements for motorists
> and other users of the transportation system."
>
> In the interest of full disclosure, I work for AAA's national office
> in Heathrow, FL.

Feb 15 11:46 AM