If you haven’t heard President Obama over this Labor Day weekend announced a new infrastructure stimulus plan. The $50bn infrastructure plan will build roads, railways and airport runways, in an effort to show his administration is tackling the US’s chronic unemployment ahead of the November mid-term elections.
But the general consensus is that it will not get approval, with many Democrats unwilling to support new spending programmes and Republicans loath to give the administration any legislative victories before the November 2 election.
So what did the last stimulus do, what was that.
“The $862bn stimulus package” Which has already devoted funds for repairing roads and building high-speed rail through the Recovery Act, an effort that the administration says has helped save or create 3m jobs during the economic downturn.
But that’s not for me to worry about I rather get to the meat and potatoes of what stocks will move off of this news.
The Construction stocks have been on my radar for the last couple weeks, but I have not sent out any alerts or watch list based on them, I think tonight is a good place to put that info out there.
First lets break down Infrastructure Stocks
construction and engineering firms
suppliers of concrete, steel, heavy equipment
water infrastructure companies
transmission companies/electric utilities and
green infrastructure companies
And here are some larger cap stocks that fall into those categories
ABB Ltd. (NYSE:ABB)
Jacobs Engineering (NYSE:JEC)
American Superconductor (NASDAQ:AMSC)
Foster Wheeler (NASDAQ:FWLT)
The Shaw Group (NYSE:SHAW)
Vulcan Materials (VMC)
Of these stocks I like VMC, and HW first followed FWLT
Another way to trade this “Infrastructure Play” is with an Infrastructure ETF or Fund
Here’s list of infrastructure ETFs and mutual funds:
Kensington Global Infrastructure (KGIAX)
Kinetics Water Infrastructure (KWINX)
iShares S&P Global Infrastructure Fund (IGF)
First Trust ISE Global Engineering & Construction (FLM)
SPDR FTSE/Macquarie Global Infrastructure 100 ETF (GII)
This is just a starting place, I do expect to a little reaction tomorrow on this news, Futures are looking good so far overnight, but honestly I am still having a hard time getting to focused on this news and still think there are better opportunities out there in the ‘New Tech Growth Stocks” and if you don’t know what those are you just have to tune in each day and see what stocks are moving and where all this M&A activity (and for those out there hear this a lot but do not know what it means…
The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without
Again HW and VMC are my favorites and I will watch them tomorrow the HW is a beautiful falling wedge and just breaking out of this formation, It will be in focus tomorrow on the show.