August 30, 2007: Ontario, Canada power picks and thoughts on U.S Capital goods, bull vrs. bear market

Since the stock market gyrates wildly, why not today's thoughts on a few stocks?


ENERGY INFRASTRUCTURE: Ontario, Canada

The Ontario Power Authority (OPA) has just released their twenty-year plan for this fast growing province. I stumbled upon Credit Suisse First Boston's remarks and analysis on this. Usually spot on, CSFB offer this scenario:

C$60 billion of infrastructure is to be in place by 2027. Price increases to be anticipated by consumer's should be in the 20-25% range. If consumers aggressively conserve the cost, of course, will be less.

45% on Ontario's electricity supply will come from conservation and renewable resources. The remaining mix consists of 47% nuclear and 8% natural gas + or -.

Companies that will benefit from this program include Brookfield Asset Management (BAM),Cameco (CCO), Fortis (FTS) and TransCanada (TRP). Others are Enbridge (ENB), Enbridge Income Fund (ENF_u.TO). EPCOR Power LP (EP_u.TO), Great Lakes Hydro Income Fund (GLH_u.TO) and TransAlta Power (TA.TO)


U.S. CAPITAL GOODS:

What picks may thrive best in a bull or bear market in the Aero Defense, EE/MI, Machinery and Transportation sectors?

Bull Market guesses:

BA,BEAV,TXT,CBE,MDR,CAT and CNW.


Bear Market guesses:

LMT, RTN, ITT, EMR, ITW, UPS and CHRW for safe havens.


I think.