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A couple of weeks ago, I wrote an article titled “8 Stocks to Buy if McCain Wins”. In the spirit of balance, I want to give the same treatment if Obama should win.
To date, the Obama camp has promised more taxes on the rich, windfall profit taxes on oil companies, higher corporate taxes, higher payroll taxes, national health care and energy independence in 10 years. As these policies are attempted to be enacted, they will have very profound impacts on certain sectors. Corporate spending will be driven in very predictable directions.
One of the first things we will see is a movement away from full-time employees to more flexible temporary staffing. As employment costs and corporate taxes increase, you will actually see more reliance on outside consultants. Professional services firms like Accenture (ACN) - trading at $38.92 - should do very well.
One of the big beneficiaries of a higher corporate tax rate will be the nation of Ireland. Ireland enjoys some of the lowest corporate tax rates in the world (12.50%) and a highly educated workforce. If U.S. corporate tax rates do in fact go higher, watch for some big moves out of some Irish stocks as U.S. companies start moving to Ireland. One in particular to put on your radar is ICON (ICLR) - trading at $39.49 - which provides outsourcing services to the pharmaceutical, and biotechnology industries and the stock has been on fire.
To meet the lofty goal of energy independence within 10 years without the use of expanded domestic drilling, coal or nuclear energy will require an enormous allocation of capital to the alternative energy space. Everything from power generation to power delivery will have to be revamped. There will be some obvious companies that will benefit from this spending spree.
Energy Conversion Devices (ENER) - trading at $55.27 - makes thin-film solar cell products, nickel metal hydride batteries, and phase-change memory devices. While the stock has been roughed up of late, an Obama win could have this one in the stratosphere.
Another player in the alternative energy space that has been flying under-the-radar is LDK Solar (LDK) - trading at $40.76 . The company turns polysilicon into multicrystalline wafers, which are used in the construction of solar cells and solar modules. The company uses recycled materials in its production process and two -thirds of its business currently comes from Asia. With an Obama win, LDK stands to dramatically increase its U.S. business.
Good old General Electric (GE) - trading at $28.81 - could also be a big beneficiary of expanded alternative energy spending. Its going to take a lot of GE wind turbines and a massive infrastructure build out to make wind work and GE has the background and know-how when it comes to monster-sized projects.
At the end of the day, accelerating corporate earnings growth is what drives stock markets higher. I must admit that I am struggling to find where the broad-based earnings growth will come from should Barack Obama win the Presidency. This isn’t a partisan thing, it’s a business observation thing.
What’s your opinion? What stocks or sectors do you think will do well with an Obama win?
Disclosure: none
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Moreover, you do realize he has taken more money from the nuclear energy industry than nay other politician -- ever, and Illinois has more nuclear power plants than any other US State. I think you listed GE for the wrong reasons...
Now, we can learn from History. GE for my example will benefit </> it not matter. The company is so diversified even the CEO probably not know what all that company do. They provide the alternative as mentioned, but, they also provide the freedom we tend to ignore, as in, military (Aviation). GE is the "ONLY" company from the "Original DOW" still on the board. Read your History. If, people going to invest be informed about what you invest in. DO NOT listen to the "if you done this scam", if they had done "this" why they working or even charging money to tell?
I tell because I know! Whine and Cry if you want, I tell free of charge. I do make my living from Stocks.
This my first "Free" lesson. Buy low, sell high. GE looking low to me!
Well, I could talk as long as the article and really say more. But, I just say; "Good Luck" remember when you buy low you may see a lot of red, but, in time it turn to "Green" ;-p
Do you research and not depend on those trying to steer you for "Their" self-interests!!!!!!!! :-O
They just completed installing a solar electric system on top of the roof top for the Dept of Energy Federal Building in Washington D.C. Sun power has also installed solar system for other government agencies such as the US Navy in Hawaii and Calf, The US Postal Service, and Air Force bases.
They have under contract to build a Solar system at Kennedy Space center site.
The company has no debt and over the last 3 months insiders have purchased a net 56.0K shares. This is in stark contrast to the 2-year quarterly average where insiders are net sellers and indicates that insiders are more bullish about SPWR's prospects for the next 6-12 months.
They need no Gov tax incentives...The Gov is paying them for their solar systems.
Also, consistently since 1900 stock market does better under Democratic presidents. Even when you correct for the effect of which bunch controls Congress. This has been extensively written up and could easily be Googled.
Natural gas or compressed natural gas (CNG) is so clearly a superior transportation fuel to that of foreign sourced gasoline that the only thing ---and it's a big 'thing" at this time, is in- place re-fueling infrastructure before it can become our national transportation fuel of choice.
CNG is cleaner, cheaper, abundant and produced in America. CNG offers us the opportunity to get OPEC off our necks forever while we solve the problems associated with direct solar use.
No more "oil wars" please---crude oil is not only dirty it's also very deadly!
1. Some people had to much caffeine reading this article. I read this as a hypothetical scenario, alluding to what companies/stocks could benefit given what policies Obama said he would pursue.
2. Another interesting point, hidden within the confines of Ha!'s message, is that individuals should conduct thorough research on a company before investing in them, rather than relying on hearsay.
3. As for Dem this or Gop that, seriously, what politician actually does everything they say they are going to do :) ? My view is this; Whatever policies they choose, no matter how far out, will get watered down to the point where the politician can get enough support for it. Right or left doesn't really matter, its a battle for the middle ground. Whoever manages to get closest without going over, wins.
Do some homework before writing something false. Obama's proposed tax cut help the middle class (<$250k per year) more than McCain's. McCain's tax platform is to extend the 15% dividend and LT cap gains tax and to grant tax breaks to oil companies. How does that translate into higher payroll taxes under Obama?
Even most Democrats are unaware of this - just one more reason Obama will lose in November if he continues this campaigning-on-persona... strategy that lets a few cheap slogans at his opponent's convention convince millions that he will raise their taxes.