I am retired and take educated guesses on all things financial.

December 08, 2008

December 9, 2008: Infrastructure Ideas For ObamaLand, Part 2

Continued from yesterday's article, I submit a few more infrastructure plays for consideration as per President-elect Obama's pledge to enhance, first and foremost, the infrastructure of our country.

MTX - Minerals Technologies, Inc. This company adds value to products that utilize minerals in a variety of areas applicable to the infrastructure theme. Trading at $47.09 with a .46% yield. 52-week trading range of $38.-74.00.
APOG - Apogee Enterprises, Inc. This company is a great way to play the glass and frame components of infrastructure. It specializes in the "outer skin" of structures using glass as well as numerous other glass-type applications. Trading at $9.02 with a 3.61% yield. 52-week trading range of $5.00-26.00.
VBI - Valmont Industries. This company is a dominant producer of concrete and metal poles and towers. It is not only a basic infrastructure play, but a "green" play as well for wind, solar and other alternative energy systems and distribution networks (power grids). VBI also produces irrigation equipment. Trading at $57.93 with a .90% yield. 52-week range of $37.-121.00.
BOOM - Dynamic Materials. This company is a major provider of welded plates used in construction of all sorts."BOOM" welds some of its plates using an explosive-driven patch, thus the ticker symbol name. Trading at $15.05 with a .94% yield. 52-week trading range of $10.-65.00

One ETF fits the infrastructure plan. PowerShares' Water Resource Portfolio, PHO.
Approximately 90% invested in U.S. water resource securities, this is one sector fund that has it right regarding the Obama plan. Other ETF's that appear to fit the infrastructure theme (basic materials, construction, etc.) just don't have the correct portfolio mix for my taste.

A note of caution. Most of my picks originally penned on December 8th have advanced mightily, some over 20%, in one trading day. This list and yesterday's post should not be purchased into this wave of strength. Wait until a pullback occurs. If President-elect Obama commented on a Tuesday that we should eat more lamb, I am confident that on Wednesday slaughterhouse and wool sweater securities and their derivitives would rise dramatically in price.

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