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Top Infrastructure Stocks

Written By Nick Hodge

Posted January 21, 2009

First, a word from the new President:

For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act-not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology’s wonders to raise health care’s quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories.

The Infrastructure Boom: It’s Already Happening

You do realize that every time Obama mentions clean energy and infrastructure you could be making money, right?

I’ve been telling you that would be the case for a while now. Back in November, I told you all that "some of the infrastructure big boys have been cut in half over the past few months, leaving the door open to scoop up some shares on the cheap before Obama unleashes his flood of infrastructure spending."

In that same article, I told you about a handful of stocks that would benefit as the change in D.C. occurred.

Here’s a chart of some of those stocks I told you were good buys at the time:

Infrastructure Stocks 1

Of those four infrastructure stocks, here’s what you could’ve made had you bought them when I said to:

  • Shaw Group (NYSE: SGR), 65%

  • American Superconductor (NASDAQ: AMSC), 45%

  • Jacobs Engineering (NSYE: JEC), 31%

  • Foster Wheeler (NASDAQ: FWLT), 16%

And all those gains came before Obama even stepped foot in the White House. Imagine what’s going to happen when he begins wielding his legislative pen.

Will you be ready to jump on these profits this time around?

Obama Takes Oath, Fosters Growth

The profit potential here couldn’t be anymore blatant.

The new leader of the free world, in one of the most historic and anticipated speeches in decades, made direct reference to the market momentum he’s about to propel, saying the economic action he’ll take will be "bold and swift."

"We will build the roads and bridges, the electric grids," he said. "We will harness the sun and the winds and the soil to fuel our cars and run our factories."

What more do you need? A personal invitation to the profit party?

Just look at what’s lined up for clean energy and infrastructure in the new economic stimulus package:

  • $20 billion in tax breaks for wind, geothermal, hydro, and bioenergy

  • $32 billion for electric infrastructure and smart grid improvements

  • $16 billion for building energy efficiency

  • $2.4 billion for carbon capture technology

These aren’t just campaign promises anymore. This is the real thing.

It’s the beginning of a prolonged and sustained bull market. According to a recent report by the Congressional Budget Office, about half the money allocated to energy and infrastructure projects would be spent by next October. The rest will be doled out later, meaning you can reap rewards from this market for years to come.

And it’s not just the government money about to be spent that makes such a great case for cleantech and green infrastructure. It’s also the money about to be taken away from the fossil fuel industry.

Just last week, Henry Waxman, Chairman of the House Energy and Commerce Committee, said he would be moving "quickly and decisively" to push climate change legislation. He said there could be a bill ready for a vote as early as Memorial Day.

When it comes to reducing emissions, Obama has called for an 80 percent reduction by 2050 from 1990 levels. To do that, a carbon cap-and-trade system will have to be enacted, in which emissions caps are set and polluting companies need to buy pollution allowances at auction.

The proceeds from the carbon auctions, according to Obama, would be used to promote clean energy.

So not only is the government about to pour billions into renewable energy and related infrastructure, but they’re also going to make it progressively more difficult and expensive to burn fossil fuels.

It’s the government-backed market opportunity of a lifetime.

And readers of my Alternative Energy Speculator are already positioned for windfall profits. You should be too!

We’ve already witnessed substantial gains in the run-up to the inauguration. But the returns witnessed when all this legislation gets passed are going to be much more impressive.

My new report contains everything you need to know to come along for the profitable ride. Read it today, and you could be seeing green by tomorrow.

Call it like you see it,

nick hodge