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Infrastructure

The Great Trump Infrastructure PlayIt has been postulated by people I trust and respect that the best next step for Donny J. Trump is to enact an aggressive FDR like infrastructure initiative to grow jobs and 'build America'. This theory has already been somewhat confirmed, as Trump literally that same day pissed off environmentalists with an aggressive move to expand infrastructure (www.axios.com) I'm incredibly reserved and hesitant to buy anything right now, but this is a macro theory that holds water (pun intended) and if the Fed does stop propping markets up, they won't stop propping up quality infrastructure-based stocks as they attempt to pull off a "Donny: The Great Builder" look before next November. These are the companies I've found with high p/e (ie. sought after, market willing to pay premium), that are outperforming or near to outperforming their sector, which is outperforming the market. This is hard, because US Infrastructure sector is essentially bleeding, down -35% compared to a market up 9%. -- ROAD Contruction Partners has a phenomenal balance sheet, trades at a healthy P/E of 23.5x (higher than sector and market), and is considered a whopping 43% *overvalued* by SimplyWallSt. This means the market is paying a handsome premium for whatever reason. The biggest caveat to ROAD, which meets all criteria to a 'T' by every other metric, is its technicals. ROAD became massively volatile starting December 2019, which was accentuated by COVID-19. The price has recovered like the market overall--a dramatic V that has taken out a significant resistance level. Still, the sharpness and number of declines since December prompt caution in buying at current levels. WTRG Essential Utilities deals in water/wastewater services. They continue to expand year over year. They trade far *above* SimplyWallSt fair value, but perhaps there is a reason the market pays this premium (P/E is 39.5x)? Their debt has spiked recently, but so has their equity. Perhaps they are aggresively expanding, to significant success, and can reign this debt in easily if desired. It's important to note WTRG has to date *not outperformed it's sector or the US Market*, which may be grounds to rule it out as part of this infrastructure play. MIC Trading "below" SimplyWallSt fair value, Macquarie Infrastructure has beaten its sector, but both are significantly negative for the year... which may be a positive if you're a buy low type. While they have significant debt, the market has justified trading them at near 60x P/E. The trend reversal isn't as strong/convincing here as with WTRG. AY Atlantica Sustainable Infrastructure is the best "sustainable" I could find that fits the criteria above. Gotta work that "sustainable" in. It is probably the future, like it or not. AY trades at "39.7% below" SimplyWallSt fair value, pays a high though seemingly unsustainable dividend, and an insane level of debt with slowly decreasing equity. Still,the market pays a premium of 92.2x earnings for this stock. Further research revealed that AY is majority owned by Algonquin Utlity Corp, and I ended up liking that stock a little more as it has a cleaner balance sheet (see below). It might be better to cut out the middle man and play a pure power utility that owns most of AY versus the pure sustainable infrastructure play. AQN Algonquin Power & Utlities is a smaller player in the space that operates in US and Canada. If both countries take on infrastructure initiative, could be a double whammy. Stock has performed well historically trending up for its lifetime until COVID-19 hit. Balance sheet is healthy, or debt and equity are balanced at the very least (a trend towards increased debt and decreasing equity bodes mildly worrisome). AQN owns AY, so this can be considered an alternative energy investment. It has outperformed it's sector (US Integrated Utilities) and the market overall, up 17.5% for the year as of writing this. Trading at "26.7% below" SimplyWallSt fair value. -- So these are my Great Trump Infrastructure Play ideas, based on how I was taught to screen companies to go long. I haven't made moves on any of these, and I'm not telling you to, either. Just tossing around ideas. What do y'all think? -ONI
NASDAQ:ROADLong
by onidraug
AMT a possible infrastructure playI suspect that the Phase 4 stimulus bill, which Trump wants to be $2 trillion dollars, will include some funds for the 5g rollout. That might benefit companies like Nokia and Ericsson, though I'd expect the US government to favor US companies in any contracts for infrastructure build. Thus, I'm looking today at American Tower. On the hourly chart, AMT looks like it has some support from the 200-hour EMA. I'm buying here and setting my stop loss below the moving average.
NYSE:AMTLong
by ChristopherCarrollSmith
2
AUS Vanadium - High Strength Steel InvestingVanadium oxide/pentoxide is used to harden steel to make high strength steel for concrete reinforcement, automobiles (thinner gauge/light weighting), and aerospace engines, and things like submarines. ASX:AVL UUUU This is micro/small cap mining stock that specializes in vanadium pentoxide, which for HSS used near 15-18% with iron and reduces corrosion as well. V2O5 is not mined effeciently by many and China will need for infrastructure. It showed the climb last year and dipping at 618fibretracement entry. wait for it. Can't see correction below 0.618, Fib min-max values.
ASX:AVLLong
by Pokethebear
Ether poised to benefit from infrastructure spending?'8th Day' positive extreme projection here is carried forward on the combined trend line, terminating at the same price at the later date where that price is shown. What happens between now and then may be greatly influenced by news $30M spending will proceed on Ethereum infrastructure by concerned parties going forward. Tentatively, an increase is likely, hovering somewhere between today's price and the extreme presented, reaching a peak somewhere on the timeline. As to whether a new higher high will occur, solidifying Ether's USD valuation here on the digital currency 'backside' as a hedge against a possible late May BTC correction, and other factors of volatility in the market, is speculative. Ether has retained a good portion of its latest surging increase in BTC valuation following BTC's fabulous rise. And on the USD side did well during the mini-correction. It may be relevant to point out if digital currencies are to gain from their intrinsic value they will have to compete on market capitalization with the very currency which drags their present valuation all over the map; this may mean investors will benefit from Ether swallowing not just the tail of the whale, but a good portion of its body, making way for its intrinsic valued cousins to refresh the sea with services and economic opportunity by way of active developer and user communities, subsuming their progenitor for the good of all. If the whales are worried at all, investors in Ether may not see it unless they first present the challenge. It will otherwise probably be business as usual, which isn't bad, but doesn't really seem to deliver on the widespread promise of systemic change resulting in lower fees, greater access, and, as mentioned above, new economic landscapes carved out of information in cyberspace, the virtual and limitless real estate which continues to capture our imagination and innovation.
by latticephreak
Sorry for not sharing earlier - SEE GREEN BAR for action candle Largest US Uranium and Vanadium mining stock Energy Fuels. UUUU Starts production of V2O5 (vanadium pentoxide) for high strength steel (infrastructure/rebar, military, aircraft engines, thin gauge steel automotive) for first month at 200-225K lb./ mo. Sorry no futures symbol for V, but UR1! is uranium. both are in tight global demand with 20% CAGR driving prices upward, as well UUUU producing more at low cost, aka margin power. Gap in demand to supply was late 2019-early 2020 and starting sooner for both. UEC OTC:BKUCF TSX:U AMEX:NLR OTC:WSTRF OTC:FCUUF OTC:CCCCF TSXV:VONE OTC:APAFF FWB:JT71
AMEX:UUUULong
by Pokethebear
3I Infrastructure Approaching Resistance3IN was in a period of consolidation that began in July 2016. After price broke out of that consolidation zone it used the resistance as support and now looks set to tackle the next area of resistance. The resistance level we need price to break is at £2.15 and if it does get through then we may see a trend form like the trend we saw from 2014 to 2016. Price is above the 50 and 200 simple moving averages on the daily and weekly timeframes. Right now the structure of price does not look appealing to trade as price has been moving sideways but a break of the resistance could change that. We need to stand aside until we have a clear direction as price could easily return back to the consolidation zone, so we need to see higher highs and higher lows to confirm we are in an uptrend. Remember to take the easy path when it comes to trading and easy profits will follow. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
LSE:3INLong
by Sublime_Trading
AAOI $28 Short Bottom towards EC; $45/$55/$60 EC Results SpikeBetween what OCLR and LITE reported, the sector looks good. MACOM reported and got caught with their pants down. Sector took a huge hit as a result. Their call bodes very well for AAOI though. They described what I saw at CES and are at least a full quarter behind AAOI. People took their results as a negative, but didn't bother to read everything I suppose. AAOI is in full control of 100G CWDM that they're just now realizing is what everyone wants. Stock will hit its 52-week low I'm sure. February 21 can't come soon enough for the added clarity. 9 days for shorts to cover. Time to grab some popcorn after next week for sure.
NASDAQ:AAOILong
by N3utra