Jim Regan

7 Small Cap Water Infrastructure Plays for the Stimulus Package

That's a valid argument HiYield, and I definitely agree wholeheartedly. One thing that is important to remember is that equities in general are lousy, and will probably continue to be lousy this year. We don't make "stock picks" here... only ideas for future investments, which is really all I was going for. Nobody here said that anything is a screaming buy, and I would be skeptical of the industrial crew if their leader (almighty GE) can't even hold it's bearings.


On Feb 25 02:48 PM Hiyield007 wrote:

>
> I don't want to pull rank and even though I have published a couple
> trading books and have over 40 years of trading experience, I don't
> have that much more insight into where the market is going than some
> rank rookie. But in my time I have seen more than my share of what
> is called a crowded trade. And anything related to infrastructure
> recently has been a very, very crowded trade. Everywhere you turn
> you are reading about the love affair with infrastructure. That
> tends to bring in the public trader aka weak longs. The past few
> weeks and especially the past two days it has been an absolute bloodbath
> in anything infrastructure. FWLT, FLR, CBI, TEX, MTW, MWA, NWPX,
> and the list goes on and on. ACM is an exception primarily because
> it was added to the S@P midcap index. TTEK has also held fairly
> well. In the future beware of the buzz, the hype, and the logical.

7 Small Cap Water Infrastructure Plays for the Stimulus Package

I hadn't analyzed TTEK, thanks for bringing them up. I agree, the consulting side of E&C is still very profitable and in demand. Let's not count out the infrastructure buzz... as the contracts haven't even been let out for the work. The hype came and went... which is why I am writing this now and not back in November. The thing is that most of these companies are back at square one regardless... so the "Obama hype" is really no longer an integral factor.

Thanks for the recommendation on Tetra, but I do think you are wrong in assuming that just because infrastructure isn't the "hot word" on the Street, the area is no longer worth your while. Have a look!

On Feb 22 04:21 PM Hiyield007 wrote:

> Making money off the Obama infrastructure buzz has come and gone.
> These stocks ran up over 50% and more off their October/November
> lows and now have collasped off their most recent highs. If you
> want a water infrastructure play about the only viable one is TTEK.

7 Small Cap Water Infrastructure Plays for the Stimulus Package

Thanks, and yeah... I had taken a look at Muellar. Unfortunately, if we are going to go small cap these guys are anything but a pure play. Muellar is more of a basic materials company than an industrial company... and their refrigeration unit is a real drag on upside. Other than that, sure they have some plumbing business... but I am going to stick with my original recommendation here. Thanks for your comments though!


On Feb 22 09:51 AM paultaut wrote:

> MWA: suggest you take a more in depth look Muellar.
>
> This is a spinoff. They make Ductile Iron Pipes and valves in addition
> to the Flow control you Do mention.
>
> I see you do not mention MLI at all.
>
> Any reason?